Global Star Acquisition Inc. (NASDAQ:GLST), a blank check company with a current market capitalization of $46.05 million and trading at $11.96 per share, has been notified of a potential delisting from the Nasdaq Stock Market due to non-compliance with the minimum Market Value of Publicly Held Shares (MVPHS) requirement.
According to InvestingPro data, the company currently shows weak financial health metrics. On December 18, 2024, the company was informed that its MVPHS had fallen below the Nasdaq's threshold of $15 million over the past 30 consecutive business days.
The company, incorporated in Delaware and headquartered in McLean, Virginia, is now on the clock to rectify the situation. It has 180 days, until June 17, 2025, to meet Nasdaq's MVPHS standard. To regain compliance, Global Star Acquisition Inc.'s MVPHS must close at or above $15 million for at least ten consecutive business days within this grace period.
If the company fails to meet the requirement by the deadline, its securities could be delisted from the exchange. Global Star Acquisition Inc. could then appeal the decision to a Nasdaq hearings panel.
The company has publicly stated its commitment to addressing the issue and maintaining its Nasdaq listing. The current situation does not affect the trading of the company's common stock, which includes its units (GLSTU), Class A common stock (GLST), redeemable warrants (GLSTW), and rights (GLSTR) on the Nasdaq.
InvestingPro analysis reveals concerning metrics, including a current ratio of 0.08 and short-term obligations exceeding liquid assets. Subscribers to InvestingPro can access additional financial health indicators and real-time monitoring tools to track the company's compliance progress.
This announcement, as required by Nasdaq Listing Rule 5810(b), is intended to inform shareholders and the public about the company's receipt of the deficiency notification. Global Star Acquisition Inc. has emphasized that it is actively seeking ways to regain compliance with Nasdaq's listing rules.
The forward-looking statements in this report, as per the company, involve risks and uncertainties, and there are no guarantees that the company will be able to regain compliance with the Nasdaq listing standards. InvestingPro data shows the company is not profitable over the last twelve months, with a negative earnings per share of -$0.06. The company's future actions will be informed by its ongoing assessment of its publicly held shares and the measures it deems reasonable for continued listing on The Nasdaq Global Market.
This information is based on a press release statement from Global Star Acquisition Inc.
In other recent news, Global Star Acquisition Inc. is addressing Nasdaq's non-compliance notice concerning its minimum publicly held shares requirement.
The company is developing a compliance plan, expected to be submitted by January 9, 2025. If accepted, Nasdaq could allow until May 24, 2025, for the company to meet the listing standard. Global Star aims to rectify the deficiency through a proposed merger with K Enter Holdings Inc., initially reported to the SEC in June 2023.
The company has also announced a special meeting to propose extending the merger deadline from December 22, 2024, to June 22, 2025, seeking more time to identify and finalize a merger with a suitable business partner. This proposed extension may be facilitated by a deposit into the trust account by the company's sponsor, affiliates, or designees.
In further news, Global Star Acquisition Inc. is facing potential delisting due to its market value of listed securities falling below the required minimum. The company is given until February 17, 2025, to regain compliance. Additionally, the merger agreement with K Enter Holdings Inc. has been revised, pushing the deadline for their business combination to December 22, 2024.
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