Global Star Acquisition Inc. (NASDAQ:GLST), a special purpose acquisition company, has received a notice from Nasdaq indicating non-compliance with the exchange's minimum publicly held shares requirement. The notification, received on Monday, states that as of November 18, 2024, Global Star did not maintain the minimum of 1,100,000 publicly held shares required for continued listing on The Nasdaq Global Market.
The company, which is in the business of effectuating mergers, share exchanges, asset acquisitions, share purchases, and reorganizations, has until January 9, 2025, to submit a compliance plan to Nasdaq. If the plan is accepted, Nasdaq may grant an extension of up to 180 days from the initial notice date, or until May 24, 2025, to meet the listing standard.
Global Star anticipates resolving the deficiency through a proposed business combination with K Enter Holdings Inc. This merger was initially reported to the SEC on June 22, 2023. The company plans to submit a compliance proposal by the January deadline, seeking the full 180-day period to regain compliance.
If Nasdaq does not accept the company's plan, Global Star has the right to appeal the decision to a Hearings Panel. However, there is no assurance that such an appeal would be successful.
In other recent news, Global Star Acquisition Inc. announced a special meeting to propose an extension of the merger deadline from December 22, 2024, to June 22, 2025. This move comes as the company seeks more time to identify and finalize a merger with a suitable business partner. The proposed extension could be facilitated by a deposit into the trust account by the company's sponsor, affiliates, or designees, equal to the lesser of $60,000 or $0.02 per share for each public share not redeemed in connection with the special meeting.
InvestingPro Insights
As Global Star Acquisition Inc. (NASDAQ:GLST) faces challenges with Nasdaq compliance, InvestingPro data provides additional context to the company's financial situation. The company's market capitalization stands at $46.58 million, reflecting its current valuation in the market. Notably, Global Star's P/E ratio is -111.4 for the last twelve months as of Q3 2024, indicating negative earnings—a common characteristic for SPACs pre-merger.
InvestingPro Tips highlight some key concerns for investors. The company is not profitable over the last twelve months, which aligns with its status as a SPAC seeking a business combination. Additionally, Global Star's short-term obligations exceed its liquid assets, potentially adding pressure as it works to meet Nasdaq's requirements.
These insights underscore the importance of the proposed merger with K Enter Holdings Inc. for Global Star's future. Investors considering this stock should be aware that there are 5 additional InvestingPro Tips available, which could provide further valuable insights into the company's financial health and prospects.
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