Nasdaq delists struggling Rennova Health, entire company worth less than $113,000

Jan 31, 2018
Gov. Rick Scott visits the headquarters of Rennova Health, then known as Medtyox.

The Nasdaq Stock Market says it kicked money-losing Rennova Health off the exchange this week.

Will anyone notice? That seems a fair question.

Related: After missing payday, Rennova raises money, issues paychecks

The Nasdaq suspended Rennova shares last year. The West Palm Beach-based company fell chronically short of the exchange’s listing requirements, such as staying above $1 a share.

What’s more, Rennova’s market cap was just $112,793 at Tuesday’s close of trading. In other words, the entire operation was worth as much as four Honda Accords, one Century Village condo or a third of a share of Berkshire Hathaway.

Rennova once made its money testing urine for rehab centers. When that business dried up, the company embarked on a dramatic change of strategy: In 2016, Rennova paid $1 million for a twice-shuttered hospital in rural Tennessee.

However, acquiring the 25-bed hospital in a poor corner of Appalachia did little to reverse Rennova’s long decline. For the first nine months of 2017, Rennova posted a net loss to shareholders of $85 million on revenue of just $3 million.

Related: Struggling Rennova buys bankrupt hospital in rural Tennessee

In 2017, Rennova took dramatic steps to meet the Nasdaq’s listing requirements, approving a 1-for-30 split and then a 1-for-15 split.

So a stockholder who held 450 shares at the beginning of 2017 had just one share at the end of the year. It’s worth 2 cents.