Acri Capital Acquisition Corp (NASDAQ:ACAC), a special purpose acquisition company, has been notified by the Nasdaq Stock Market of a potential delisting due to its market value falling below the required minimum. On July 23, 2024, the company, which is based in Austin, Texas, received a letter from Nasdaq indicating that its Market Value of Listed Securities (MVLS) had been below the $35 million threshold for 30 consecutive business days.
The notice, which is a standard procedure and not an immediate threat to the company's listing, triggers a 180-day compliance period, ending on January 20, 2025. During this timeframe, Acri Capital must maintain an MVLS of at least $35 million for a minimum of 10 consecutive business days to regain compliance with Nasdaq's continued listing requirements.
If the company fails to meet the MVLS criterion by the deadline, it may face delisting from the Nasdaq Capital Market. However, Acri Capital would have the right to appeal the decision before any delisting occurs.
The company has publicly stated that it is exploring options to address the deficiency and regain compliance with the MVLS Rule. Despite these efforts, Acri Capital has cautioned that there is no guarantee of achieving or maintaining compliance with the Nasdaq's listing standards.
This announcement is based on a press release statement.
InvestingPro Insights
As Acri Capital Acquisition Corp (NASDAQ:ACAC) faces the challenge of maintaining its Nasdaq listing, investors might consider several key metrics and insights from InvestingPro to gauge the company's financial health and market position. With a Market Cap of $45.63 million, ACAC is above the Nasdaq's minimum MVLS threshold as of the last twelve months ending Q1 2024, which could provide some buffer against delisting concerns. However, the company is trading at a high P/E Ratio of 99.67, indicating a premium valuation that may warrant caution among value-focused investors. Additionally, it's worth noting that the company is profitable over the last twelve months, which could be a positive sign for potential recovery and compliance with Nasdaq's requirements.
InvestingPro Tips suggest that ACAC's management has been actively engaged in share buybacks, which could signal confidence in the company's value and prospects. On the flip side, the company does not pay dividends, potentially affecting its attractiveness to income-seeking shareholders. For those considering a deeper dive into Acri Capital's financials and market performance, InvestingPro offers additional insights and tips. By using the coupon code PRONEWS24, investors can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to a total of 9 InvestingPro Tips for ACAC at https://www.investing.com/pro/ACACU.
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