NEW YORK - Collective Audience, Inc. (NASDAQ:CAUD), a company specializing in audience-based performance advertising and media, is set to have its common stock suspended from trading on the Nasdaq Global Market starting Friday, August 16, 2024. The Nasdaq Hearings Panel has determined to delist the company's shares without providing the traditionally granted grace period.
The decision came despite Collective Audience's compliance with its SEC reporting requirements and the recent completion of two acquisitions. The company's stock will temporarily trade on the OTC Markets' Pink Open Market from the same date while it considers an appeal to the Nasdaq Listing and Hearing Review Council. Collective Audience believes it meets the qualifications to be listed on the OTCQB Market and has a pending application with the OTC Markets.
Collective Audience's application to transfer to the Nasdaq Capital Market was also denied, although it currently meets the continued listing requirements, except for minimum bid price compliance. The company has 15 days to potentially appeal the delisting decision.
The Nasdaq panel cited the immediate drop in the company's market trading price following its deSPAC in November 2023 as the primary reason for the delisting. Despite this setback, Collective Audience CEO Peter Bordes expressed disagreement with the decision, emphasizing the company's compliance and progress, including the acquisition of BeOp, a conversational media platform. Bordes remains confident in the company's long-term strategy and its commitment to shareholder value.
Collective Audience expects to generate positive EBITDA in 2024 on a pro forma basis, with projected annual pro forma revenues to exceed $7.5 million. The company will provide additional details on the delisting in a Form 8-K filing on www.sec.gov.
This news is based on a press release statement, and the company continues to focus on providing advanced tools and data-driven applications for brands, agencies, and publishers on the Open Web through its AudienceCloud platform.
In other recent news, Collective Audience, Inc. has received a non-compliance notice from Nasdaq's listing qualifications department due to the delayed submission of the company's quarterly report for the period ending March 31, 2024. The company has until June 24, 2024, to submit a plan to regain compliance. CEO Peter Bordes attributed the delay to the extensive de-SPAC transaction completed at the end of the previous year, which has prolonged the accounting process. Despite this, Collective Audience has launched AudienceDesk™ powered by AudienceCloud™, an AdTech platform, and announced the appointment of new board members, the formation of two major partnerships, and the pending closure of two acquisitions. Bordes expressed confidence in the company's growth strategy and its ability to meet Nasdaq's compliance requirements and build long-term shareholder value. These are the recent developments in the company.
InvestingPro Insights
Amid the recent developments with Collective Audience, Inc. (NASDAQ:CAUD), the company's financial and market performance data present a nuanced picture. According to InvestingPro data, the company's market capitalization stands at a modest $7.01 million, reflecting the market's current valuation of the business. Additionally, the company's revenue for the last twelve months as of Q4 2023 was reported at $12.14 million, although it has experienced a significant decline of 40.0% over the same period. This contraction in revenue is consistent with the company's recent challenges and the subsequent delisting decision.
From a profitability standpoint, the gross profit margin was recorded at 8.25%, indicating that Collective Audience has been facing difficulties in maintaining strong profitability ratios. This aligns with one of the InvestingPro Tips, which points out the company's weak gross profit margins. Furthermore, the company's stock has experienced a notable return over the last week, with an 8.0% increase in price total return, suggesting some investor optimism or potential speculative trading in the short term. However, this contrasts with a significant 96.0% decline over the last year, highlighting the volatility and the long-term downward trend in the stock price.
For investors and stakeholders looking to delve deeper into the company's financials and market performance, there are additional InvestingPro Tips available that provide further insights. These include observations on the company's stock price movement in relation to the market and an analysis of its short-term obligations compared to its liquid assets. In total, there are 10 additional tips listed on InvestingPro that could offer valuable perspectives for those monitoring Collective Audience's journey through its current challenges.
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