Carmel-based health tech firm to delist from Nasdaq

Carmel-based Syra Health Corp. announced Tuesday it would delist from the Nasdaq Capital Market, about 18 months after the company went public and began trading on the exchange.

Syra, a health care technology company, raised $5.3 million after expenses in its initial public offering on Sept. 29, 2023, after opening at $3.50 per share. Shares closed at 27 cents each on Tuesday.

Nasdaq Stock Market LLC notified Syra in October that its stock had been trading below the minimum $1 per share for 30 consecutive days, putting it out of compliance with the market’s rules. It gave the company until April 16 to regain compliance or be delisted.

Syra said in a statement on Tuesday that its executive management team and board made the decision to delist the stock “following a thorough and extensive evaluation.” It said a “strategic pause will allow for improved focus on strengthening the company’s core fundamentals while reducing the company’s costs associated with a Nasdaq listing.”

Syra offers a wide range of health care services, although most of its revenue comes from contracts in 24 states for services that include recruitment, training and workforce development of nurses and nursing assistants. The company’s largest customer is the Indiana Family and Social Services Administration.

In December, Syra launched an AI-powered mental health app called Syrenity to help it reach profitability and establish itself as a provider of high-tech mental health services. Last month, CEO Deepika Vuppalanchi said demand for the subscription-based app has been increasing.

At that time, Syra announced fiscal year 2024 revenue of $7.98 million, up nearly 45% over the previous year. It reported a loss of $3.7 million—about 50 cents per share—compared with $2.9 million in 2023.

During the earnings call, Syra Chief Financial Officer Priya Prasad said the company was “exploring various options to regain compliance” with Nasdaq rules.

“At the current time, we do not intend to partake in any reverse stock splits and will instead focus on strengthening the fundamentals and the path to profitability, which we believe will correct the market’s perception,” Prasad said on March 11.

But this week, the company said its last trading day on the Nasdaq would likely be on or about April 21.

Syra said in its statement that it expected its stock to be “listed on the OTC market until such time it decides to reapply and receives approval to relist on a national securities exchange.”

The OTC—or over-the-counter—market is a decentralized marketplace where stocks, bonds and derivatives are traded directly between parties or through brokers, rather than on a centralized exchange.