NUBURU Announces Notice of Noncompliance with NYSE American Listing Standards
- None.
- The company received a deficiency letter from the NYSE American indicating non-compliance with listing standards due to low share price, which may impact investor confidence and stock performance.
Insights
The notification received by NUBURU from NYSE American regarding non-compliance with continued listing standards signifies a critical juncture for the company. A persistent low stock price can often reflect underlying concerns about a company's financial health, market position, or future growth prospects. To address such non-compliance, companies typically explore strategic options like a reverse stock split to bolster the stock price. However, this is often a cosmetic fix that does not address fundamental issues.
For investors, the key consideration is whether the company's plans for operational improvements and strategic initiatives are likely to drive genuine value creation. The threat of delisting can serve as a catalyst for management to accelerate turnaround plans or strategic repositioning. The long-term impact on stakeholders hinges on the effectiveness of these measures and the company's ability to leverage its blue laser technology in expanding industrial applications.
It is also essential to monitor the company's progress towards regaining compliance, as failure to do so could lead to delisting, which would severely limit the stock's liquidity and potentially its appeal to institutional investors. The timeline provided until June 28, 2024, offers a window for the company to implement corrective actions and communicate these effectively to the market.
NUBURU's specialization in high-power and high-brightness industrial blue laser technology positions it within a niche segment of the industrial technology market. The application of blue laser technology spans across various sectors, including material processing and additive manufacturing. The company's ability to innovate and maintain technological leadership is crucial in securing its market position.
The notice of non-compliance may have a psychological impact on the market perception of NUBURU, potentially affecting customer and investor confidence. However, if the company can demonstrate a clear pathway to compliance and financial stability, it may mitigate negative sentiments. Market observers should assess the broader industry trends, such as the adoption rates of blue laser technology and the competitive landscape, to gauge the potential for NUBURU's recovery and growth.
Understanding the company's strategic response to the Notice, including any plans for a reverse stock split, is essential. Such actions can influence the stock's volatility and, by extension, the company's market capitalization. The response will also reveal the company's agility in navigating market challenges and its commitment to maintaining its listing status, which is often a sign of credibility and stability in the eyes of stakeholders.
The receipt of a deficiency notice from a stock exchange is a procedural step that triggers specific disclosure obligations for the publicly-listed company. NUBURU's transparency in announcing the Notice adheres to these regulatory requirements and underscores the importance of maintaining open communication with shareholders and the market.
Section 1003(f)(v) of the NYSE American Company Guide pertains to the maintenance of adequate price levels to ensure orderly trading and satisfactory market depth. The legal implications of non-compliance can lead to delisting, which would compel the company to either appeal the decision or seek listing on an alternative exchange, both of which could entail significant legal and administrative complexities.
Investors should be aware that while the Notice does not directly impact the company's operations or SEC reporting obligations, it may have indirect legal ramifications. These include potential shareholder litigation if the stock price continues to underperform or if the company's efforts to regain compliance are deemed insufficient or not timely executed. The company's governance practices and adherence to the timeline set forth for price improvement will be closely scrutinized during this period.
The Company intends to monitor the price of its Common Stock and consider available options, including conducting a reverse stock split, if its Common Stock does not trade at a consistent level likely to result in the Company regaining compliance by June 28, 2024. The Company’s receipt of the Notice does not affect the Company’s business, operations or reporting requirements with the Securities and Exchange Commission.
About NUBURU
Founded in 2015, NUBURU, Inc. (NYSEAM: BURU) is a developer and manufacturer of industrial blue lasers that leverage fundamental physics and their high-brightness, high-power design to produce faster, higher quality welds and parts than current lasers can provide in laser welding and additive manufacturing of copper, gold, aluminum and other industrially important metals. NUBURU’s industrial blue lasers produce minimal to defect-free welds that are up to eight times faster than the traditional approaches — all with the flexibility inherent to laser processing. For more information, please visit www.nuburu.net.
Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including relating to its continued listing on the NYSE American. All statements other than statements of historical fact contained in this press release may be forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “seek,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. Forward-looking statements in this press release include, among other things: anticipated benefits associated with laser-based additive manufacturing. All 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. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by NUBURU and its management, are inherently uncertain and many factors may cause the company’s actual results to differ materially from current expectations which include, but are not limited to: (1) the ability to continue to meet the security exchange’s listing standards; (2) failure to achieve expectations regarding its product development and pipeline; (3) the inability to access sufficient capital to operate as anticipated, whether from Lincoln Park Capital Fund, LLC or other sources; (4) the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (5) changes in applicable laws or regulations; (6) the possibility that NUBURU may be adversely affected by other economic, business and/or competitive factors; (7) volatility in the financial system and markets caused by geopolitical and economic factors; (8) failing to realize benefits from the partnership with GE Additive; and (9) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in NUBURU’s most recent periodic report on Form 10-K or Form 10-Q and other documents filed with the Securities and Exchange Commission from time to time. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. 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. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. NUBURU does not give any assurance that it will achieve its expected results. NUBURU assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240104845358/en/
Investor Relations:
Cody Slach & Ralf Esper
Gateway Group, Inc.
BURU@gateway-grp.com
(949) 574-3860
Media Relations:
Zach Kadletz & Anna Rutter
Gateway Group, Inc.
BURU@gateway-grp.com
(949) 574-3860
Source: NUBURU, Inc.
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