A breast implant manufacturer that’s earned both accolades and ire over its social media sweepstakes and influencer sponsorships says it recently received a set of none too bouyant notices.
The company is seeing itself in subpoenas.
Santa Barbara, Calif. breast implant manufacturer Sientra, Inc. reported to the SEC Tuesday that it had received a grand jury subpoena from the U.S. Department of Justice, dated September 30, 2022.
And that the U.S. Securities and Exchange Commission also subpoenaed documents and testimony from the company and its general counsel.
Sientra, a publicly traded company, is required to file a Form 8-K to report major events that shareholders should be aware of.
The company reported receiving the subpoenas in an 8-K filed with the SEC Tuesday, October 11th:
Sientra, Inc. (the “Company”) received a grand jury subpoena dated September 30, 2022 from the U.S. Department of Justice (“DOJ”) requesting the production of materials concerning the trading activities of a former Chief Executive Officer of the Company in 2019 and 2020, including all documents and communications with the General Counsel regarding such activities.
In addition, the U.S. Securities and Exchange Commission (the “SEC”) has subpoenaed documents and testimony from each of the Company and its General Counsel. Each of the SEC subpoenas is captioned “In the Matter of Trading in the Securities of Sientra, Inc.”
The SEC subpoenas request, among other things, documents and communications relating to trading activities by each of the aforementioned individuals.
The investigation by the SEC does not mean that the SEC has concluded that anyone has violated the law. Also, the investigation does not mean that the SEC has a negative opinion of any person, entity or security.
The Company intends to cooperate with DOJ and the SEC. The Company is, at this time, unable to predict what action, if any, might be taken in the future by DOJ or the SEC as a result of the matters that are the subject of the subpoenas and investigation.”Form 8-K, Sientra, Inc., October 11, 2022
The DOJ subpoena to Sientra, dated September 30, followed a different and disrelated notice the company received a day earlier.
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
“On September 29, 2022, Sientra, Inc. (the “Company”) received written notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market, LLC (“Nasdaq”) notifying the Company that, based on the closing bid price of the Company’s common stock…for the last 30 consecutive trading days, the Company no longer complies with the minimum bid price requirement for continued listing on The Nasdaq Global Select Market. Nasdaq Listing Rule 5450(a)(1) requires listed securities to maintain a minimum bid price of $1.00 per share (the “Minimum Bid Price Requirement”), and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the Minimum Bid Price Requirement exists if the deficiency continues for a period of 30 consecutive trading days.”Form 8-K, Sienra, Inc., October 5, 2022
The company reported its receipt of that notice in an 8-K filed with the SEC on Wednesday, October 5th.
“The Notice has no immediate effect on the listing of the Common Stock on The Nasdaq Global Select Market. Pursuant to the Nasdaq Listing Rules, the Company has been provided an initial compliance period of 180 calendar days to regain compliance with the Minimum Bid Price Requirement. To regain compliance, the closing bid price of the Common Stock must be at least $1.00 per share for a minimum of 10 consecutive trading days prior to March 28, 2023, and the Company must otherwise satisfy The Nasdaq Global Select Market’s requirements for listing.”
Sientra (SIEN) last traded at $1.00 or more on August 16th. It closed out Tuesday at $0.74.
Year-to-date, the company’s share price is down roughly -79 percent and, since its Nasdaq debut in October 2014, roughly -95 percent.
Beyond the 180-day initial compliance period, the company can take multiple actions to prevent its delisting, as detailed in its Form 8-K.
Sientra says it “intends to monitor the closing bid price of the Common Stock and consider its available options to resolve the noncompliance with the Minimum Bid Price Requirement,” and that “there can be no assurance that the Company will be able to regain compliance with The Nasdaq Global Select Market’s continued listing requirements….”
See also: U.S. Securities and Exchange Commission: “SEC Charges Medical Aesthetics Company and Its Former CEO with Misleading Investors in a $60 Million Stock Offering,” September 19, 2018