Spruce Cutting Workforce by 55 Percent, Facing Nasdaq Delisting

Rare Daily Staff

Spruce Biosciences said it would reduce its workforce by 55 percent as part of a plan to prioritize development and potential accelerated approval of its enzyme replacement therapy for the treatment of Sanfilippo Syndrome Type B that it acquired from BioMarin Pharmaceutical earlier this month.

In a filing with the U.S. Securities and Exchange Commission, the company said the workforce reduction is effective immediately, with a termination date of May 2, 2025 for affected individuals.

The company estimates that it will incur approximately $0.9 million in cash charges in connection with the workforce reduction, consisting of expenses related to severance payments and healthcare coverage assistance and related costs. Most of these estimated charges will be recorded in the second quarter of 2025.

Spruce previously said it received a written notification from Nasdaq that as a result of the its ongoing failure to comply with the minimum bid price requirement, the company’s common stock will be delisted from Nasdaq and trading in its stock will be suspended at the open of trading on April 29, 2025.

The company has appealed Nasdaq’s determination to its Hearings Panel, however it said a timely request for a hearing will not stay the trading suspension of the company’s common stock as Nasdaq had previously granted compliance periods (including a transfer to Nasdaq Capital Market in 2024 with an April 21, 2025 deadline). The company failed to regain compliance with the minimum bid price requirement within the period allotted.

As a result of the suspension in trading and expected delisting, the company expects that its common stock will begin trading publicly on the over-the-counter market on April 29, 2025, under its existing symbol “SPRB”.

Spruce said it is working to regain compliance with all applicable requirements for continued listing on Nasdaq, including by seeking stockholder approval for a reverse stock split of the company’s common stock. Spruce’s board has yet to determine the actual split ratio it will seek.