TAMPA - Marpai, Inc. (NASDAQ:MRAI), a Third-Party Administration (TPA) company, announced today that it will withdraw from the Nasdaq hearings process and transition its Class A common shares to the OTCQX Market. The company's shares will be suspended from trading on Nasdaq at the opening of trading on Wednesday, May 29, 2024, and will begin trading on OTCQX immediately after.
The decision comes as Marpai was not in compliance with Nasdaq's minimum stockholders' equity requirement. The company believes that the cost and management efforts required to maintain Nasdaq listing standards do not outweigh the benefits. By moving to OTCQX, Marpai aims to focus on driving profitable growth while reducing public company expenses.
Damien Lamendola, CEO of Marpai, expressed enthusiasm for the transition, emphasizing a commitment to transparency and shareholder value. He anticipates that trading on OTCQX will maintain visibility among institutional investors and analysts, benefiting shareholders in the long run.
Marpai will continue to be subject to the periodic reporting requirements of the U.S. Securities Exchange Act of 1934 following the delisting from Nasdaq. Shareholders will not need to exchange their shares as a result of this transition.
The company's shares are expected to be traded on OTCQX under the same trading symbol "MRAI". However, there is no guarantee that brokers will continue to make a market in the shares or that trading will persist on OTCQX.
InvestingPro Insights
As Marpai, Inc. (NASDAQ:MRAI) prepares for its transition from Nasdaq to OTCQX, a closer look at the company's financial health and stock performance through InvestingPro provides valuable context for investors. Marpai's market capitalization stands at a modest $20.4 million, reflecting the size and scale of the company within its industry. Despite a notable revenue growth of 25.45% over the last twelve months as of Q1 2024, the company's operating income margin during the same period was significantly negative at -62.85%, indicating challenges in converting sales into operating profits.
InvestingPro Tips highlight that Marpai's stock has experienced high price volatility and does not pay dividends, which could affect investor sentiment, especially among those seeking stability or passive income. Additionally, the company's short-term obligations surpassing its liquid assets may raise concerns about its ability to meet immediate financial liabilities. With analysts not expecting profitability this year and a historical lack of profitability over the past twelve months, investors may exercise caution.
However, it's not all challenging news for Marpai. The company has seen a strong return over the last three months, with a price total return of 36.55%, which may interest traders looking for short-term gains. For those considering investing in Marpai, it's worth noting that on Investing.com's dedicated page for Marpai at https://www.investing.com/pro/MRAI, there are additional InvestingPro Tips available for a deeper analysis. For those interested in a comprehensive investment tool, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to these valuable insights.
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