Concord Acquisition Corp III Receives Noncompliance Notification from the New York Stock Exchange Regarding Minimum Public Stockholders
- None.
- Non-compliance with NYSE minimum public stockholders requirement
- Potential impact on stock performance if not returned to compliance within 18 months
Insights
A notification of non-compliance with the NYSE's minimum public stockholder requirement can serve as a cautionary signal to investors and analysts. The key concern here is the potential for decreased liquidity and marketability of the Company's stock, which could impact its stock price volatility. With fewer public stockholders, the stock may be less attractive to institutional investors who look for more liquid and widely-held stocks. The company's plan to regain compliance will be critical to observe, as it may involve strategies such as attracting new investors or possibly even a reverse stock split to reduce the number of shares and consequently increase the proportion of shares held by each investor.
Understanding the implications of this notice from a market dynamics perspective is essential. The market reaction to such news can be mixed, depending on the perceived ability of the company to rectify the situation. A successful business plan submission that convinces the NYSE of a path to compliance could minimize negative sentiment. However, failure to do so could lead to delisting, which typically results in a sharp decline in stock price due to the move to a less prestigious and less regulated over-the-counter (OTC) market. The company's performance in the coming months, as well as the NYSE's periodic reviews, will be important indicators of future stock performance and investor confidence.
From a legal standpoint, the company's adherence to the NYSE's Listing Rule is crucial to maintain its status as a listed entity. The regulatory framework is designed to ensure a fair and orderly market and compliance with such rules is non-negotiable for listed companies. The 45-day window to submit a business plan is a standard NYSE procedure that offers the company an opportunity to rectify the deficit in public stockholders. The legal team's role will be to ensure that the plan not only meets the NYSE's criteria but also aligns with securities laws and regulations. The 18-month compliance window indicates the NYSE's willingness to provide a reasonable period for the company to adjust, but it also sets a clear timeline for enforcement actions, should the company fail to comply.
The Company plans to promptly submit a business plan that demonstrates how the Company expects to return to compliance with the Listing Rule within 18 months of receipt of the Notice.
The Notice has no immediate impact on the Company's common stock, and provided the NYSE approves the plan, the Company's common stock will continue to be listed and traded on the NYSE during the 18-month period, subject to the Company's compliance with other NYSE listing standards and periodic review by the NYSE of the Company's progress under the plan.
About Concord Acquisition Corp III
Concord Acquisition Corp III is a special purpose acquisition company formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses in the financial services or financial technology industries. It is sponsored by Concord Sponsor Group III LLC, an entity affiliated with Atlas Merchant Capital LLC, an investment firm that offers debt and equity investment strategies, seeking long-term value through differentiated expertise in financial services and credit markets.
Concord raised
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Certain of these forward-looking statements can be identified by the use of words such as "believes," "expects," "intends," "plans," "estimates," "assumes," "may," "should," "will," "seeks," or other similar expressions. Such statements may include, but are not limited to, statements regarding the Company's plan to submit a business plan to NYSE that demonstrates how the Company expects to return to compliance with the Listing Rule within 18 months of receipt of the Notice. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Factors that may cause such differences include, without limitation, the Company's ability to timely prepare a business plan that demonstrates how the Company expects to return to compliance with the Listing Rule within 18 months of receipt of the Notice, and other risks and uncertainties indicated from time to time in filings with the SEC, including the definitive proxy statement and the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, in each case under the heading "Risk Factors," and other documents the Company has filed, or will file, with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Contact:
Concord Acquisition Corp III
Jeff Tuder
jeff@tremsoncapital.com
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SOURCE Concord Acquisition Corp III
FAQ
What notification did Concord Acquisition Corp III receive from the NYSE?
What is the deadline for the company to submit a business plan?
Will the notice have an immediate impact on the company's common stock?
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