Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
6 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  



Nasdaq Listing


On April 1, 2020, Citius received notice from The Nasdaq Stock Market, ("Nasdaq"), indicating that, because the closing bid price for the common stock has fallen below $1.00 per share for 30 consecutive business days, the Company no longer complies with the $1.00 minimum bid price requirement for continued listing. 


The notification of noncompliance has no immediate effect on the listing or trading of the Company's common stock or its warrants to purchase common stock under the symbols "CTXR" and "CTXRW," respectively. To regain compliance, the closing bid price of the Company's common stock must meet or exceed $1.00 per share for a minimum of 10 consecutive business days.


On April 17, 2020, Citius received notice from Nasdaq stating due to the market conditions caused by the COVID-19 health crisis, the period to regain compliance for Nasdaq listing has been extended to December 14, 2020.


If the Company does not regain compliance, the Company may be eligible for an additional grace period. To qualify, the Company would be required to meet the continued listing requirements for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the minimum bid price requirement, and provide written notice of its intention to cure the minimum bid price deficiency during the second compliance period. If the Company meets these requirements, the Nasdaq staff will grant an additional 180 calendar days for the Company to regain compliance with the minimum bid price requirement. If the Nasdaq staff determines that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible for such additional compliance period, Nasdaq will provide notice that the Company's common stock will be subject to delisting. The Company would have the right to appeal a determination to delist its common stock, and the common stock would remain listed on The Nasdaq Capital Market until the completion of the appeal process.


Paycheck Protection Program


On April 12, 2020, due to the business disruption caused by the COVID-19 health crisis, the Company applied for a forgivable loan through the Small Business Association's Paycheck Protection Program (the "PPP"). In accordance with the provisions of the PPP, the loan accrues interest at a rate of 1% and a portion of the loan may be forgiven if it is used to pay qualifying costs such as payroll, rent and utilities. Amounts that are not forgiven will be repaid 2 years from the date of the loan. On April 15, 2020, the Company received funding in the amount of $164,583 from the Paycheck Protection Program through its bank.


Registered Direct Offering


On May 14, 2020, the Company announced that it had entered into definitive agreements with several institutional and accredited investors for the purchase of an aggregate of 7,058,824 shares of its common stock, at a purchase price per share of $1.0625 for gross proceeds of $7,500,001 million, in a registered direct offering priced at-the-market under Nasdaq rules. Additionally, the Company also agreed to issue to the investors unregistered immediately exercisable warrants to purchase up to 3,529,412 shares of its common stock with an exercise price of $1.00 per share and a term of five and one-half years. The offering is expected to close on May 18, 2020, subject to customary closing conditions.