This announcement follows a period of uncertainty for the company, as maintaining a listing on a major exchange like Nasdaq is crucial for the visibility, liquidity, and investor confidence in a company's stock. The compliance with Nasdaq's requirements signifies a positive turn for Smith Micro and its shareholders.
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As per the Nasdaq Listing Rule 5550(a)(2), companies are required to maintain a minimum bid price of $1.00. Smith Micro was given until May 26, 2025, to address this issue.
However, the company has resolved the matter ahead of the deadline, as its common stock achieved a closing price at or above $1.00 for 10 consecutive business days, from December 23, 2024, to January 7, 2025. Based on InvestingPro's Fair Value analysis, the stock currently appears undervalued, with analyst price targets ranging from $4.00 to $5.50.
The return to compliance was confirmed in a written notification from Nasdaq on January 8, 2025. With this development, Smith Micro has successfully satisfied the conditions set by the Nasdaq Listing Rule 5810(c)(3)(A), and the issue regarding the minimum bid price requirement is now considered closed.
This announcement follows a period of uncertainty for the company, as maintaining a listing on a major exchange like Nasdaq is crucial for the visibility, liquidity, and investor confidence in a company's stock. The compliance with Nasdaq's requirements signifies a positive turn for Smith Micro and its shareholders.
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