Item
3.01
|
Notice
of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of
Listing.
|
Reference
is made to those certain Current Reports on Form 8-K filed by Hancock Jaffe Laboratories, Inc. (the “Company”) on
October 18, 2019 and March 25, 2020 (the “Prior 8-Ks”) with the Securities and Exchange Commission (the “SEC”)
disclosing that the Company had received letters from the staff (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”)
indicating that the Company was not in compliance with certain of the continued listing rules of Nasdaq. Specifically, on October
14, 2019, the Staff notified the Company that the bid price of the Company’s common stock had closed at less than $1 per
share over the previous 30 consecutive business days, and, as a result, the Company did not comply with Listing Rule 5550(a)(2)
(the “Bid Price Rule”). Further, on March 20, 2020, the Staff notified the Company it no longer met the $2,500,000
minimum stockholders’ equity requirement under Listing Rule 5550(b)(1) (the “Equity Rule”).
On
April 14, 2020, having not regained compliance with the Bid Price Rule, the Company received a letter from the Staff notifying
the Company that, unless the Company timely requests a hearing, the Company’s common stock and listed warrants would be
subject to delisting. Accordingly, the Company intends to timely request a hearing before a Nasdaq Hearings Panel (the “Panel”).
The hearing request will result in a stay of any suspension or delisting action pending the hearing and the expiration of any
extension period granted by the Panel following the hearing. In that regard, the Panel has the right to grant the Company an extension
to regain compliance with the Bid Price Rule, which has been suspended by Nasdaq through June 30, 2020, until December 28,
2020 and the Equity Rule until October 13, 2020. However, there can be no assurance that the Hearings Panel will grant the
Company an extension to comply with the Bid Price Rule and Equity Rule or, even if an extension is granted, that the Company will
be able to regain compliance with all applicable requirements for continued listing. If the trading of the Company’s securities
is suspended, the Company’s securities will cease to be quoted on Nasdaq. It is expected that the Company’s securities
would be immediately eligible for trading and quotation on the over the counter market.
Forward-Looking
Statements
The
information above includes “forward-looking statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements
of historical facts, included herein are forward-looking statements. These forward-looking statements may be identified by their
use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,”
“believe,” “intend,” “achievable,” “anticipate,” “will,” “continue,”
“potential,” “should,” “could,” and similar terms and phrases. Although the Company believes
that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks
and uncertainties. These forward-looking statements represent the Company’s current expectations or beliefs concerning future
events, and it is possible that the results described in this release will not be achieved. These forward-looking statements are
subject to certain risks, uncertainties and assumptions identified in this release or as disclosed from time to time in the Company’s
filings with the Securities and Exchange Commission (the “SEC”). Factors that could cause actual results to differ
from the Company’s expectations include the risk that the Company’s appeal will not be successful; uncertainties relating
to the ability of the Company to cure any delinquencies in compliance with Nasdaq listing rules; risks relating to the substantial
costs and diversion of personnel’s attention and resources due to these matters; and other factors described in the Company’s
filings with the SEC. As a result of these factors, actual results may differ materially from those indicated or implied by forward-looking
statements.
Any
forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not
undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events
or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors.