TMC the metals Co Inc. (NASDAQ:TMC), a metal mining company, announced it has regained compliance with the Nasdaq's minimum bid price requirement. On January 17, 2025, TMC was notified by The Nasdaq Stock Market LLC that its common shares had maintained a closing bid price of $1.00 or higher for ten consecutive business days. This achievement follows a previous notice from Nasdaq on January 6, 2025, indicating that TMC's shares had fallen below the required $1.00 minimum bid price for 34 consecutive business days. According to InvestingPro data, TMC's stock has shown strong momentum, posting a 30% return over the past six months and currently trading at $1.57, well above its 52-week low of $0.72.
The compliance notice received this Monday confirms that TMC has addressed the deficiency and is in line with the Nasdaq Listing Rule 5450(a)(1), which dictates the standards for continued listing on the exchange. With this resolution, TMC avoids potential delisting procedures and ensures its shares remain tradable on the Nasdaq Stock Market. Based on InvestingPro's comprehensive analysis, the company maintains a Fair Financial Health score, though investors should note it operates with moderate debt levels. InvestingPro subscribers have access to 8 additional key insights about TMC's financial position.
TMC's return to compliance is a significant development for the company, as maintaining a listing on a major exchange like Nasdaq is crucial for attracting institutional investors and maintaining liquidity for shareholders. The news may also provide a degree of reassurance to investors regarding the company's market standing. With a market capitalization of $528 million and analyst price targets ranging from $3.75 to $4.20, the stock shows potential upside according to Wall Street expectations. For detailed analysis and valuation metrics, investors can access TMC's comprehensive Pro Research Report, available exclusively on InvestingPro.
The Vancouver-based TMC, previously known as Sustainable Opportunities Acquisition Corp. before a name change on January 2, 2020, operates within the metal mining sector under the SIC code 1000. The company's business address is located at 1111 West Hastings Street, 15th Floor, Vancouver, British Columbia, V6E 2J3, and it can be reached by phone at (888) 458-3420.
The details of the regained compliance were outlined in an 8-K filing with the U.S. Securities and Exchange Commission dated January 23, 2025. The report was signed by Craig Shesky, TMC's Chief Financial Officer. The announcement is based on a press release statement and provides investors with the latest regulatory status of the company's securities.
In other recent news, TMC the Metals Company has received a non-compliance notice from Nasdaq due to its common shares falling below the minimum required bid price over a specified period. The company now has until July 7, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of 10 consecutive trading days. This is not TMC's first encounter with such a notice, having received similar warnings in December 2022 and April 2023.
In the financial arena, TMC reported an EBITDA of -$97.82 million in the last twelve months. Despite a net loss of $20.5 million in Q3, the company is shifting its focus towards a services business, aiming to reduce operating expenses to below $5 million per quarter. TMC also plans to submit its exploitation contract application to the International Seabed Authority by June 2025 and is conducting a pre-feasibility study for a capital-light strategy.
Additionally, TMC has launched a registered direct offering, backed by major institutional shareholders, to strengthen its financial resilience. The company anticipates securing services contracts by the next earnings call, leveraging its 22 successful offshore campaigns.
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