SHANGHAI - MultiMetaVerse Holdings Limited (NASDAQ:MMV), an animation and entertainment company, has been notified by the Nasdaq Stock Market that it currently does not meet the minimum bid price and market value requirements for continued listing. The company's shares have been under the $1.00 minimum bid price, as well as below the $35 million minimum market value of listed securities, which are stipulated under the Nasdaq Listing Rules 5550(a)(2) and 5550(b)(2), respectively.
The notification, which follows the end of an extension period on October 14, 2024, has given MultiMetaVerse until October 22, 2024, to request a hearing before the Nasdaq Hearings Panel to address the noncompliance. If the company fails to appeal by this deadline, its securities, including Class A ordinary shares and warrants, will be suspended from trading on October 24, 2024.
Should the suspension take effect, a Form 25-NSE will be filed with the Securities and Exchange Commission (SEC), which will formally remove MultiMetaVerse's securities from listing and registration on the Nasdaq exchange. In such a case, the company's securities are expected to move to over-the-counter trading.
Founded in 2015, MultiMetaVerse is known for its Aotu World brand, which has gained popularity for its engaging storyline and distinctive graphics, particularly among young audiences in China. The company has expanded its offerings to include a variety of products such as animated content, comic books, short videos, collectibles, stationery, consumer products, and mobile games. It has also developed other brands and characters, including Neko Album.
This development comes as a significant event for the company's investors and stakeholders, who may now be looking at a future where the company's stock could potentially trade outside of the major market exchange. This article is based on a press release statement issued by MultiMetaVerse Holdings Limited.
In other recent news, MultiMetaVerse Holdings Limited (MMV) has formed a new joint venture, GOLD ABC DIGITAL TECHNOLOGY CO., LIMITED, in partnership with ZHENGHE HOLDING CO., LIMITED. The venture aims to leverage financial technology and blockchain within traditional finance sectors. Based in Hong Kong, GOLD ABC will develop algorithms for self-holding asset appreciation. MMV holds a 20% stake in the venture, while ZHENGHE will oversee daily management and operations.
The venture has already initiated strategic moves by borrowing 500 Bitcoins from Zhenghe, with an annual interest rate of 8%. These funds will be used for secondary market trades, managed by GOLD ABC's AI algorithms, to potentially increase asset value. Additionally, GOLD ABC plans to invest in gold over the next three months, considering it a stable alternative asset amid the current political and economic climate.
MMV's Chairman and CEO, Yiran Xu, stated that the establishment of GOLD ABC is a significant step in the company's strategic expansion into digital assets and blockchain technology. This sentiment was echoed by Wenjin Li, Director and CEO of Zhenghe, who emphasized the potential for growth and shareholder value through technological expertise and innovative strategies. These are recent developments in MMV's continued efforts to diversify its operations.
InvestingPro Insights
The recent notification from Nasdaq regarding MultiMetaVerse Holdings Limited's (NASDAQ:MMV) listing status aligns with several key financial metrics and market performance indicators. According to InvestingPro data, MMV's market capitalization stands at a modest $14.48 million, significantly below the $35 million threshold required by Nasdaq. This low market cap is reflective of the company's struggling share price, which closed at $0.44 in the most recent session, far below the $1.00 minimum bid requirement.
The company's financial health appears precarious, with InvestingPro data showing a negative P/E ratio of -0.67, indicating ongoing profitability challenges. This is further underscored by the operating income margin of -283.72% for the last twelve months as of Q4 2023, suggesting substantial operational inefficiencies.
MMV's stock performance has been notably weak, with InvestingPro data revealing a year-to-date price total return of -61.58% and a one-year return of -62.88%. These figures highlight the significant downward pressure on the stock, which now trades at just 20.49% of its 52-week high.
An InvestingPro Tip notes that MMV's revenue growth has been negative, with a decline of 26.31% over the last twelve months. This aligns with the company's struggle to maintain its Nasdaq listing and suggests underlying business challenges.
Another relevant InvestingPro Tip indicates that MMV is trading near its 52-week low, which correlates with the company's current listing predicament and may signal a critical juncture for investors.
For readers interested in a more comprehensive analysis, InvestingPro offers 9 additional tips for MultiMetaVerse Holdings Limited, providing deeper insights into the company's financial situation and market position.
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