Clover Health's financial position took a turn for the better this week after the insurance company said it had regained compliance with the Nasdaq Stock Market's listing standards.
The insurance company announced in April that it needed to raise its share prices to $1 and hold that value for 10 consecutive days by Oct. 17 in order to remain listed on the exchange. Clover Health, which sells Medicare Advantage plans and physician enablement technology, had been mulling a reverse stock split and share reduction proposal and had scheduled a shareholder vote on the matter for Aug. 30. The carrier will now reevaluate the proposals, the insurance company said in a news release issued after Thursday's market close.
Clover Health declined to comment.
The insurer's stock opened at $1.35 per share on Friday, flat from Thursday’s close. At its height in December 2020, its shares were valued at $16.77.
The carrier has been restructuring its operations as it seeks to achieve profitability. The same month the company received a delisting notice, Clover Health cut 10% of its staff, or approximately 70 workers, and inked an agreement with the UST Health Proof technology vendor to outsource its plan operations.
The company also recently settled several shareholder lawsuits alleging the insurer committed securities fraud by allegedly failing to notify investors it was the subject of a federal fraud investigation prior to its initial public offering, among other accusations.
During the company's first quarter, the most recent earnings report available, Clover Health narrowed its net loss by 3.8% to $72.6 million on a revenue decrease of 39.6% to $527.8 million. The insurer’s membership declined by 1.4% to 83,800.