Aquaron Acquisition Corp. Announces Receipt of Delisting Notification from Nasdaq

Rhea-AI Summary

Aquaron Acquisition Corp. (NASDAQ: AQU) has received a delisting notification from Nasdaq due to non-compliance with the Minimum Public Holders Rule, which requires at least 300 public holders. Trading of AQU's common stock will be suspended on September 4, 2024, unless the company appeals. The company is also delinquent in filing its Q2 2024 10-Q report. AQU was initially notified of non-compliance on February 28, 2024, and granted an extension until August 26, 2024. The company intends to request an appeal and a stay of suspension, which would allow continued trading on Nasdaq Capital Market until the hearing process concludes. However, there is no assurance that the appeal will be successful or that AQU's securities will remain listed.

Positive

• None.

Negative

• Received delisting notification from Nasdaq
• Non-compliance with Minimum Public Holders Rule (less than 300 public holders)
• Trading suspension scheduled for September 4, 2024
• Delinquent in filing Q2 2024 10-Q report
• Risk of removal from Nasdaq Capital Market listing

Insights

Legal Expert

The delisting notification from Nasdaq poses significant challenges for Aquaron Acquisition Corp. The company's non-compliance with the Minimum Public Holders Rule and failure to file its quarterly report are serious issues that could lead to the removal of its securities from Nasdaq. This situation raises red flags for investors:

• Lack of transparency: The missing quarterly report suggests potential financial reporting issues.
• liquidity: Fewer than 300 public holders indicates low trading volume and potential difficulties for investors to buy or sell shares.
• Increased volatility: Delisting often leads to heightened price fluctuations and reduced investor confidence.

The company's appeal to the Nasdaq Hearings Panel is a critical juncture. If unsuccessful, Aquaron faces relegation to over-the-counter markets, potentially impacting shareholder value and future financing options. Investors should closely monitor the outcome of this appeal and be prepared for possible rapid changes in the stock's status and tradability.

Financial Analyst

The delisting threat for Aquaron Acquisition Corp. is a major concern for investors. As a SPAC, Aquaron's primary value lies in its ability to complete a business combination. The delisting process could severely hamper this objective:

• Reduced appeal to potential merger targets due to uncertain listing status.
• Potential difficulty in meeting the $5 million minimum cash requirement typical for SPACs.
• Risk of trust account liquidation if a business combination isn't completed within the specified timeframe.

Investors should be wary of the increased risk profile. The lack of a recent quarterly report adds another layer of uncertainty. If delisted, the stock may experience significant price volatility and reduced liquidity. This situation underscores the importance of due diligence and risk assessment when investing in SPACs, particularly those facing regulatory challenges.

NEW YORK, Aug. 30, 2024 /PRNewswire/ -- Aquaron Acquisition Corp. (NASDAQ: AQU, the "Company"), a special purpose acquisition company, announced today that it received a written notice (the "Letter") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") indicating that, because the Company has not regained compliance with Listing Rule 5550(a)(3) (the "Minimum Public Holders Rule"), which requires the Company to have at least 300 public holders for continued listing on Nasdaq, trading of the Company's common stock will be suspended at the opening of business on September 4, 2024 and a Form 25-NSE will be filed with the Securities and Exchange Commission (the "SEC"), which will remove the Company's securities (including the units, common stock, and rights) from listing and registration on Nasdaq, unless the Company requests a hearing to appeal this determination by 4:00 p.m. Eastern Time on September 4, 2024.

The Letter also indicates that the Company is delinquent in filing its quarterly report on Form 10-Q for the quarterly period ended June 30, 2024, which serves as an additional basis for delisting the Company's securities from The Nasdaq Capital Market in light of the Company's non-compliance with Minimum Public Holders Rule.

As previously reported by the Company on a Current Report on Form 8-K filed with the SEC on March 1, 2024, Nasdaq initially notified the Company on February 28, 2024 that it was not in compliance with the Minimum Public Holders Rule. On April 15, 2024, the Company submitted a plan to regain compliance and, on May 7, 2024, the Company received a written notice from Nasdaq notifying the Company that Nasdaq had determined to grant the Company an extension until August 26, 2024 to regain compliance with the Minimum Public Holders Rule.

A company that receives a delist determination for such a delinquency can request an appeal to the Nasdaq Hearings Panel (the "Panel"), which will stay the suspension of the Company's securities for a period of 15 days from the date of the request. The Letter points out that the Company may request to stay the suspension of the Company's securities pending a decision from the Panel at the scheduled hearing.

The Company intends to timely request an appeal and a stay of the suspension in accordance with the Letter. The request will stay the suspension of trading on the Company's securities, and the Company's securities will continue to trade on The Nasdaq Capital Market until the hearing process concludes and the Panel issues a written decision.

The time and place of any hearing before the Panel will be determined by the Panel. There can be no assurance that the Panel will grant the Company's request for continued listing. There can be no assurance that the Panel will grant the Company's request to stay the suspension of the Company's securities or that the Company's securities will continue to be listed on The Nasdaq Capital Market.

About Aquaron Acquisition Corp.

Aquaron Acquisition Corp. is a Delaware corporation incorporated as a blank check company for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company's efforts to identify a prospective target business will not be limited to a particular industry or geographic region, although it intends to focus on operating businesses in the new energy sector. The Company affirmatively excludes as an initial business combination target any company of which financial statements are audited by an accounting firm that the United States Public Company Accounting Oversight Board is unable to inspect for two consecutive years beginning in 2021 and any target company with China operations consolidated through a VIE structure.

Forward-Looking Statements

Certain statements in this press release may be considered forward-looking statements. Forward-looking statements generally relate to future events or the future financial or operating performance of the Company. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "potential" or "continue," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Such statements may include, but are not limited to, statements regarding the Company's expectations regarding a hearing before the Panel and a stay of the suspension of trading on the Company's securities. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company, are inherently uncertain.

Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. Readers should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Except as may be required by law, the Company does not undertake any duty to update these forward-looking statements.

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SOURCE Aquaron Acquisition Corp.

FAQ

Why is Aquaron Acquisition Corp. (AQU) facing delisting from Nasdaq?

Aquaron Acquisition Corp. (AQU) is facing delisting due to non-compliance with Nasdaq's Minimum Public Holders Rule, which requires at least 300 public holders, and for being delinquent in filing its Q2 2024 10-Q report.

When will AQU's stock be suspended from trading on Nasdaq?

AQU's stock is scheduled to be suspended from trading on Nasdaq at the opening of business on September 4, 2024, unless the company successfully appeals the decision.

What options does Aquaron Acquisition Corp. (AQU) have to avoid delisting?

AQU can request an appeal to the Nasdaq Hearings Panel and a stay of suspension by September 4, 2024. If granted, this would allow continued trading on Nasdaq Capital Market until the hearing process concludes.

When was Aquaron Acquisition Corp. (AQU) first notified of its non-compliance with Nasdaq rules?

AQU was initially notified of its non-compliance with the Minimum Public Holders Rule on February 28, 2024, and was granted an extension until August 26, 2024, to regain compliance.