TMC the metals company Inc (NASDAQ:TMC)., a metal mining firm with a market capitalization of $386 million, has been notified by The Nasdaq Stock Market that its common shares did not meet the minimum required bid price over a specified period, according to a recent 8-K filing.
The company's stock, listed under the ticker TMC, fell below the $1.00 threshold for 34 consecutive trading days from November 7 to December 26, 2024. Currently trading at $1.14, InvestingPro analysis indicates the stock is slightly overvalued, with shares declining 12.8% in the past week.
The Nasdaq's minimum bid price rule is a standard for continued listing on the exchange. TMC now has a 180-day grace period, until July 7, 2025, to regain compliance. The company must maintain a closing bid price of at least $1.00 for a minimum of 10 consecutive trading days within this period. InvestingPro data reveals concerning fundamentals, including a very low current ratio of 0.05, indicating potential liquidity challenges. Subscribers can access 7 additional key ProTips about TMC's financial position.
This is not the first time TMC has faced such a notice; it received similar warnings in December 2022 and April 2023 but managed to regain compliance afterwards. As of the date of the filing, the company's shares have closed above the minimum bid price for nine consecutive days.
Should TMC fail to meet the requirement by July 7, it may be eligible for an additional 180 days to achieve compliance. This would involve meeting all other initial listing standards for the Nasdaq Capital Market, except for the minimum bid price, and potentially implementing a reverse stock split if necessary.
The notice does not immediately affect the listing of TMC's common shares or warrants, which will continue to trade on the Nasdaq, subject to the company's compliance with other listing requirements. TMC has stated it intends to monitor its share price closely and consider options to regain compliance with the Nasdaq's minimum bid price rule.
With an EBITDA of -$97.82 million in the last twelve months and an overall Financial Health score of "FAIR" according to InvestingPro's comprehensive analysis, investors can access detailed insights and the full Pro Research Report covering TMC's financial outlook and market position.
This development is based on the information provided in the company's SEC filing.
In other recent news, The Metals Company (TMC) has revealed its Q3 results, reporting a net loss of $20.5 million. Despite this, the company is shifting its focus towards a services business, aiming to reduce operating expenses to below $5 million per quarter.
TMC plans to submit its exploitation contract application to the International Seabed Authority by June 2025. In addition, a pre-feasibility study for a capital-light strategy is underway, with significant nodule processing trials expected in 2025.
TMC has also launched a registered direct offering to strengthen its financial resilience, backed by major institutional shareholders. The company is optimistic about securing services contracts by the next earnings call, leveraging its 22 successful offshore campaigns. Amid these developments, TMC is delaying capital expenditures on production until regulations become more certain. These recent developments reflect TMC's strategic transition and its anticipation of supportive political and regulatory changes in the U.S. and globally.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.