Janover Inc., a loan brokerage firm, has been notified by the Nasdaq Stock Market LLC that it is at risk of being delisted due to its stock price falling below the minimum required threshold. The notification, dated Monday, stated that Janover's common stock had closed below the $1.00 minimum bid price for 30 consecutive business days, violating the Nasdaq's continued listing requirements.
The company, which is listed under the ticker JNVR, now has until January 13, 2025, to address this deficiency and regain compliance with the Nasdaq's Bid Price Rule. To achieve this, the bid price of Janover's common stock must close at $1.00 or higher for at least ten consecutive business days before the deadline.
If Janover Inc. fails to meet this requirement within the initial 180-day period, it may qualify for a second 180-day grace period. This is contingent upon the company meeting all other initial listing standards for the Nasdaq Capital Market, except for the Bid Price Rule, and the company would have to express its intention to remedy the bid price deficiency, potentially through a reverse stock split.
The notice from Nasdaq does not immediately affect Janover Inc.'s listing, and its stock continues to trade on the Nasdaq Capital Market. The company is exploring options to regain compliance, but there is no guarantee of success.
This development is a forward-looking statement subject to various risks and uncertainties, and Janover Inc. has cautioned that its future results could differ significantly due to factors beyond its control. The information provided is based on a press release statement and reflects the company's current expectations and plans.
InvestingPro Insights
As Janover Inc. grapples with the challenge of meeting Nasdaq's minimum bid price requirement, it's essential for investors to consider the financial health and market performance of the company. According to InvestingPro data, Janover's market capitalization stands at a modest 8.39 million USD, and its stock has recently experienced significant price declines, with a one-year price total return of -80.15%. The company's gross profit margin remains high at 99.56% for the last twelve months as of Q1 2024, but this figure is overshadowed by an operating income margin of -213.1% for the same period, indicating considerable challenges in profitability.
Investors should note that Janover's stock has been characterized by high price volatility and has seen a sharp downturn over the last week. Additionally, the company has been quickly burning through cash and has not been profitable over the last twelve months. These factors contribute to the urgency of the situation as Janover seeks to regain compliance with Nasdaq's listing standards.
For those interested in deeper analysis, InvestingPro offers additional insights, including a total of 11 InvestingPro Tips for Janover Inc., which can be accessed at: https://www.investing.com/pro/JNVR. These tips provide a more comprehensive view of the company's financial health and market behavior. To access these insights and more, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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