PHOENIX – Moatable Inc. (NYSE: MTBL), the parent company of SaaS providers Lofty Inc. and Trucker Path Inc., is facing delisting from the New York Stock Exchange (NYSE) after failing to meet the minimum market capitalization requirement.
The NYSE has initiated proceedings to delist the company's American depositary shares (ADSs), which represent 45 Class A ordinary shares each, following a period where its average global market capitalization remained below the $15 million threshold over 30 consecutive trading days.
The NYSE's decision is grounded in Section 802.01B of its Listed Company Manual. As a consequence, trading of Moatable's ADSs on the NYSE has been suspended immediately. Moatable has the option to request a review of this decision by a Committee of the Board of Directors of the Exchange within ten business days of receiving the notice.
In anticipation of the delisting, Moatable's ADSs commenced trading on the OTC Markets' Pink market today. The company is considering further options, including a potential application to be listed on the OTCQB or OTCQX markets, which are considered more reputable tiers of the OTC Markets Group.
Investors and stakeholders are advised that the information contained in this announcement is based on a press release statement from Moatable Inc. and that the company's future plans are subject to change in accordance with market conditions and regulatory requirements.
InvestingPro Insights
As Moatable Inc. (NYSE: MTBL) grapples with the consequences of falling below the NYSE's minimum market capitalization requirement, the company's financial metrics paint a detailed picture of its current standing. According to real-time data from InvestingPro, Moatable's market capitalization has adjusted to a modest $8.37 million USD, reflecting the challenges the company faces in maintaining its listing status.
The company's Price / Book ratio, as of the last twelve months leading up to Q3 2023, stands at a low 0.13, which may appeal to value investors searching for assets trading below their book value. This is complemented by an impressive Gross Profit Margin of 78.52%, suggesting that while the company faces broader financial difficulties, it retains a strong underlying ability to generate profit from its sales.
Despite these strengths, Moatable is not without its significant challenges. It has been reported that the company operates with a significant debt burden and may have trouble making interest payments on its debt, which could exacerbate its current predicament. Additionally, the company has been quickly burning through cash, a situation that is reflected in its Price Total Return metrics, with a steep 67.15% decline over the past year.
InvestingPro Tips highlight that Moatable's stock is in oversold territory, with an RSI suggesting potential buying opportunities for contrarian investors. The stock has also fared poorly over the last month and is trading near its 52-week low, which, when combined with the low Price / Book multiple, could indicate a potential undervaluation.
Investors looking to delve deeper into Moatable's financial health can find additional insights on InvestingPro, where a total of 16 InvestingPro Tips are available to help inform their investment decisions. For those interested in a comprehensive analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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