Alpha Star Acquisition Corporation Announces Receipt of Notice from Nasdaq Regarding Minimum Market Value Deficiency

Rhea-AI Summary

Alpha Star Acquisition (Nasdaq: ALSA) has received a notice from Nasdaq indicating non-compliance with the minimum Market Value of Listed Securities (MVLS) requirement. The company failed to maintain the required $50,000,000 MVLS for 30 consecutive business days from August 12 to September 30, 2024.

ALSA has been granted a 180-day compliance period until March 31, 2025, to regain compliance. To do so, the company's MVLS must meet or exceed $50,000,000 for at least 10 consecutive business days. If ALSA fails to comply within this period, its securities may be subject to delisting from Nasdaq. The company is evaluating options to regain compliance, including the possibility of transferring to the Nasdaq Capital Market.

Positive

• 180-day compliance period granted to regain MVLS requirement
• Option to transfer to Nasdaq Capital Market if compliance is not achieved

Negative

• Non-compliance with Nasdaq's minimum Market Value of Listed Securities requirement
• Risk of delisting from Nasdaq if compliance is not regained by March 31, 2025
• MVLS fell below $50,000,000 for 30 consecutive business days

Insights

Financial Analyst

This notice from Nasdaq regarding Alpha Star Acquisition 's (ALSA) minimum market value deficiency is a significant red flag for investors. The company's market value has fallen below the $50 million threshold required for continued listing on the Nasdaq Global Market, which could lead to potential delisting if not addressed.

Key points to consider:

• ALSA has until March 31, 2025 to regain compliance by maintaining a market value above $50 million for 10 consecutive business days.
• The company's current market cap of $48,433,308 is just shy of the requirement, suggesting that a modest increase could resolve the issue.
• Options for ALSA include boosting investor confidence to raise the stock price or potentially transferring to the Nasdaq Capital Market with less stringent requirements.

This situation highlights the company's struggle to maintain its market position and could indicate underlying financial or operational challenges. Investors should closely monitor ALSA's efforts to regain compliance and assess the potential risks of delisting, which could significantly impact liquidity and shareholder value.

New York, NY, Oct. 04, 2024 (GLOBE NEWSWIRE) -- Alpha Star Acquisition Corporation. (Nasdaq: ALSA) (the “Company”) announced that it has received a letter (the “Letter”) from the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company is currently not in compliance with the minimum Market Value of Listed Securities (“MVLS”) set forth in the Nasdaq Listing Rules for continued listing on the Nasdaq Global Market (the “MVLS Requirement”). Nasdaq Listing Rule 5450(b)(2)(A) requires companies to maintain a minimum MVLS of US$50,000,000 and Nasdaq Listing Rule 5810(c)(3)(C) provides that a failure to meet the MVLS requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the MVLS of the Company from August 12, 2024 to September 30, 2024, the Company no longer meets the minimum MVLS requirement. This notification does not impact the listing and trading of the Company’s securities at this time.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(C), the Company has been provided a compliance period of 180 calendar days, or until March 31, 2025, to regain compliance with the Rule. To regain compliance, the Company’s MVLS must meet or exceed $50,000,000 for a minimum of ten consecutive business days prior to March 31, 2025. If at any time during this compliance period the Company’s MVLS closes at $50,000,000 or more for a minimum of ten consecutive business days, Nasdaq will provide the Company with written confirmation of compliance and the matter will be closed.

In the event the Company fails to timely regain compliance with the Rule, the Company’s securities will be subject to delisting from Nasdaq. Alternatively, the Company may consider applying for a transfer to the Nasdaq Capital Market.

The Company intends to regain compliance with the applicable Nasdaq Listing Rules and will evaluate its available options to regain compliance with the MVLS Requirement within the 180-calendar-day compliance period.

About Alpha Star Acquisition Corporation

Alpha Star Acquisition Corporation is a blank check company formed under the laws of the Cayman Islands for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

Forward Looking Statements

This press release contains statements that constitute “forward-looking statements”. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and final prospectus for the offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Company Contacts:

Zhe Zhang
Chairman and Chief Executive Officer
100 Church Street, 8th Floor, New York, New York
(332) 233-4356
Email: zhangzhe@siftcap.cn

FAQ

What is the minimum MVLS requirement ALSA failed to meet?

Alpha Star Acquisition (ALSA) failed to maintain the minimum Market Value of Listed Securities (MVLS) of $50,000,000 required by Nasdaq Listing Rule 5450(b)(2)(A).

How long does ALSA have to regain compliance with Nasdaq's MVLS requirement?

ALSA has been given a 180-day compliance period, until March 31, 2025, to regain compliance with Nasdaq's MVLS requirement.

What must ALSA do to regain compliance with Nasdaq's MVLS requirement?

To regain compliance, ALSA's Market Value of Listed Securities (MVLS) must meet or exceed $50,000,000 for a minimum of ten consecutive business days before March 31, 2025.

What are the consequences if ALSA fails to regain compliance with Nasdaq's MVLS requirement?

If ALSA fails to regain compliance with the MVLS requirement by March 31, 2025, its securities may be subject to delisting from Nasdaq. Alternatively, the company may consider applying for a transfer to the Nasdaq Capital Market.