Bakkt Notified by NYSE of Non-Compliance with NYSE Trading Share Price Listing Rule
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Insights
The notification received by Bakkt Holdings, Inc. from the NYSE regarding non-compliance with the minimum share price requirement is a critical financial development. This scenario, often referred to as a 'share price deficiency', can be indicative of market sentiments and underlying financial health. It's important to note that a sub-$1 share price can sometimes lead to reduced investor confidence and potential delisting if not addressed. The six-month cure period provided by the NYSE is a grace period for the company to rectify this issue, with options like a reverse stock split, which consolidates the number of existing shares into fewer, proportionally more valuable shares to boost the stock price.
For stakeholders, the short-term focus will be on the company's strategy to regain compliance. A successful increase in share price could stabilize investor confidence, while failure to do so could lead to volatility and further scrutiny of the company's financial stability. Long-term implications hinge on the effectiveness of the chosen remedy and the company's overall performance post-compliance.
The market's reaction to Bakkt Holdings' share price deficiency and the subsequent steps the company takes to remedy the situation will be telling of the broader market perception of the company's value and prospects. A reverse stock split, while mechanically increasing the share price, does not inherently change the company's market capitalization or address the fundamental issues that may have led to the stock's decline. Investors and analysts will closely monitor the company's operational performance and growth strategies to determine whether the price correction aligns with genuine value creation or is merely a cosmetic change.
Moreover, the company's ability to maintain other NYSE listing standards throughout this period is crucial. Any additional non-compliance issues could compound investor concerns and further impact the stock's performance. The situation presents a learning opportunity regarding the delicate balance between stock market regulations, investor relations and corporate governance.
Intends to cure the deficiency and return to compliance with NYSE standard
On March 13, 2024, the Company notified the NYSE that it intends to cure the stock price deficiency and to return to compliance with the NYSE continued listing standard. The Company can regain compliance at any time within the six-month period following receipt of the NYSE notice if the Company has a share price of at least
Under the NYSE’s rules, if the Company determines that it will cure such average stock price deficiency by taking an action that will require stockholder approval, it must so inform the NYSE, and the noncompliance with the price condition will be deemed cured if the price promptly exceeds
The Common Stock will continue to be listed and trade on the NYSE during this period, subject to the Company’s compliance with other NYSE continued listing standards.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, but are not limited to, statements regarding the Company’s intention to cure the stock price deficiency, to return to compliance with the NYSE continued listing standard and to consider alternatives, including effecting a reverse stock split, to cure the NYSE continued listing requirement deficiency, among others. Forward-looking statements can be identified by words such as “will,” “likely,” “expect,” “continue,” “anticipate,” “estimate,” “believe,” “intend,” “plan,” “projection,” “outlook,” “grow,” “progress,” “potential” or words of similar meaning. Such forward-looking statements are based upon the current beliefs and expectations of Bakkt’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and beyond Bakkt’s control. Actual results and the timing of events may differ materially from the results anticipated in such forward-looking statements as a result of the following factors, among others: Bakkt’s ability to continue as a going concern; Bakkt’s ability to grow and manage growth profitably; changes in Bakkt’s business strategy; Bakkt’s ability to integrate its acquisitions and achieve desired synergies; Bakkt’s future capital requirements and sources and uses of cash, including funds to satisfy its liquidity needs; changes in the market in which Bakkt competes, including with respect to its competitive landscape, technology evolution or changes in applicable laws or regulations; changes in the markets that Bakkt targets; disruptions in the crypto market that subject Bakkt to additional risks, including the risk that banks may not provide banking services to Bakkt; the possibility that Bakkt may be adversely affected by other economic, business, and/or competitive factors; the inability to launch new services and products or to profitably expand into new markets and services; the inability to execute Bakkt’s growth strategies, including identifying and executing acquisitions and Bakkt’s initiatives to add new clients; Bakkt’s failure to comply with extensive government regulation, oversight, licensure and appraisals; uncertain regulatory regime governing blockchain technologies and crypto; the inability to develop and maintain effective internal controls and procedures; the exposure to any liability, protracted and costly litigation or reputational damage relating to Bakkt’s data security; the impact of any goodwill or other intangible assets impairments on Bakkt’s operating results; Bakkt’s inability to maintain the listing of its securities on the NYSE; and other risks and uncertainties indicated in Bakkt’s filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on such forward-looking statements. Such forward-looking statements relate only to events as of the date on which such statements are made and are based on information available to us as of the date of this press release. Unless otherwise required by law, we undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events.
About Bakkt
Founded in 2018, Bakkt builds solutions that enable our clients to grow with the crypto economy. Through institutional-grade custody, trading, and onramp capabilities, our clients leverage technology that’s built for sustainable, long-term involvement in crypto.
Bakkt is headquartered in
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Investor Relations
Ann DeVries, Head of Investor Relations
Ann.DeVries@bakkt.com
Media
press@bakkt.com
Source: Bakkt Holdings, Inc.
FAQ
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