XBP Europe Holdings, Inc., a business services provider, has received a formal notification from The Nasdaq Stock Market LLC regarding the company's non-compliance with the Market Value of Publicly Held Shares (MVPHS) requirement for continued listing on The Nasdaq Global Market. The notice, dated Monday, October 18, 2024, indicates that the company has not regained compliance with the MVPHS requirement, which mandates a minimum public market value of $15 million.
In response to the deficiency, XBP Europe Holdings plans to request a hearing before the Nasdaq Hearings Panel to present a plan for regaining compliance with all Nasdaq continued listing requirements, including the MVPHS requirement. The filing of a hearing request will automatically stay any suspension or delisting of the company’s securities until the hearing process is completed and any granted extension period expires.
Earlier, on September 5, 2024, the company had been notified of a separate deficiency concerning the Market Value of Listed Securities (MVLS), which has since been resolved due to the company meeting an alternative compliance threshold based on total assets and total revenue.
The company's common stock, with the trading symbol XBP, and redeemable warrants, with the symbol XBPEW, are currently listed on The Nasdaq Global Market and The Nasdaq Capital Market, respectively.
XBP Europe Holdings, previously known as CF Acquisition Corp. VIII, is incorporated in Delaware and has its principal executive offices in Irving, Texas. The company's latest communication reflects forward-looking statements regarding its efforts to regain compliance with Nasdaq's requirements, with the acknowledgment that there is no guarantee of a favorable outcome from the Nasdaq Hearings Panel.
In other recent news, XBP Europe Holdings Inc. faces potential delisting from the Nasdaq Global Market due to a shortfall in its Market Value of Listed Securities (MVLS). The business service provider has been in non-compliance with the minimum MVLS requirement of $50 million for 30 consecutive business days. Despite this, the company's current trading status remains unaffected.
In an effort to rectify the situation, XBP has applied to transfer its listing from the Nasdaq Global Market to the Nasdaq Capital Market. This move, however, is contingent on the company meeting the new market's listing requirements. Furthermore, XBP must resolve its non-compliance with the $15 million market value of publicly held shares standard by mid-October.
InvestingPro Insights
XBP Europe Holdings' current financial situation aligns with the challenges highlighted in the article. According to InvestingPro data, the company's market capitalization stands at a modest $36.8 million, which explains its struggle to meet Nasdaq's $15 million Market Value of Publicly Held Shares requirement. The company's financial health appears precarious, with InvestingPro Tips indicating that XBP is "quickly burning through cash" and its "short term obligations exceed liquid assets."
The stock's recent performance reflects the company's difficulties. While there has been a "significant return over the last week" (14.41%) and a "strong return over the last month" (23.3%), the longer-term picture is less optimistic. The stock price has "fallen significantly over the last year" (-89.67%) and is currently trading at just 2.57% of its 52-week high.
These insights provide context to XBP's non-compliance issues and its upcoming hearing with the Nasdaq Hearings Panel. Investors seeking a more comprehensive analysis can access 12 additional InvestingPro Tips for XBP Europe Holdings.
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