OLD GREENWICH, CT – Star Equity Holdings, Inc. (NASDAQ:STRR), a company specializing in electromedical and electrotherapeutic apparatus, announced today that it has successfully regained compliance with NASDAQ's minimum bid price requirement.
The company received a Reinstatement Letter from the Listing Qualifications Department of The NASDAQ Stock Market on Monday, confirming that its common stock had maintained a minimum bid price of at least $1.00 per share for 10 consecutive business days, as required by NASDAQ Listing Rule 5450(a)(1).
This development follows a notification received on February 14, 2024, in which NASDAQ informed Star Equity Holdings that its common stock did not meet the minimum bid price of $1.00 over the preceding 30 consecutive business days. The company was given a 180-day period to regain compliance.
According to the Reinstatement Letter, the condition was satisfied as the company's stock closed above the $1.00 threshold through July 1, 2024. On the following day, July 2, 2024, shares of Star Equity Holdings closed at $3.96 per share, well above the NASDAQ requirement.
The return to compliance marks the end of the matter with NASDAQ, with no further action required from Star Equity Holdings regarding the bid price rule. The company, which is incorporated in Delaware and has its principal executive offices in Old Greenwich, CT, is listed under the ticker symbol "STRR" on the NASDAQ Global Market.
This event is a significant step for Star Equity Holdings, as maintaining compliance with NASDAQ's listing requirements is crucial for the continued trading of its stocks on this major exchange. The company's common stock, along with its Series A Cumulative Perpetual Preferred Stock and Series C Participating Preferred Stock, remains listed and actively traded on the NASDAQ Global Market.
The information reported is based on a press release statement and reflects the latest regulatory developments concerning Star Equity Holdings' status with NASDAQ.
In other recent news, Star Equity Holdings announced a 1-for-5 reverse stock split, reducing the number of outstanding shares from approximately 15.8 million to around 3.2 million. The move aims to elevate the per-share trading price to comply with Nasdaq's minimum bid price requirement. This action will also proportionally adjust the number of shares under the company's equity incentive plans and the number of restricted stock units outstanding.
Star Equity Holdings faced a challenging first quarter in 2024, with revenues falling by 26.1% to $9.1 million due to delayed customer financing for key commercial projects. The company's gross profit also experienced a sharp decline of 63.1% from the previous year. Despite these setbacks, the company remains confident about its sales pipeline and backlog.
In a strategic move, Star Equity Holdings acquired Timber Technologies, a manufacturer of engineered wood products. The acquisition, financed by a $7 million term loan from Bridgewater Bank at a 7.85% interest rate, is expected to enhance the company's Building Solutions Division.
Despite not meeting expected financial targets for the first quarter of 2024, Star Equity Holdings is focusing on market expansion and synergies between its divisions.
InvestingPro Insights
With Star Equity Holdings, Inc. (NASDAQ:STRR) successfully regaining NASDAQ compliance, investors may be evaluating the company's financial health and stock performance. According to InvestingPro data, Star Equity Holdings holds a market cap of approximately $12.49M USD. While the company's revenue has seen a decline of 26.45% over the last twelve months as of Q1 2024, it's noteworthy that the company holds more cash than debt, positioning it potentially favorably in terms of liquidity.
An intriguing aspect for investors is the company's low revenue valuation multiple, which could signal a potential undervaluation of the stock. Furthermore, Star Equity Holdings has not been profitable over the last twelve months and does not pay dividends, which might be relevant for those focused on income-generating investments. The stock has experienced high price volatility, which could present opportunities for investors with a higher risk tolerance.
For those looking to delve deeper into Star Equity Holdings' performance and financials, there are additional InvestingPro Tips available, offering comprehensive analysis and metrics. To explore these insights and enhance your investment strategy, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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