Ignyte Acquisition Corp. Receives Notification of Deficiency from Nasdaq Related to Delayed Filing of Quarterly Report on Form 10-Q
Ignyte Acquisition Corp. (NASDAQ:IGNYU) has received a notice from Nasdaq Regulation due to the late filing of its Quarterly Report on Form 10-Q for the period ended March 31, 2021. This breach of Nasdaq Listing Rule 5250(c)(1) does not immediately affect the trading of its units, shares, or warrants. The Company must submit a compliance plan by July 26, 2021, with potential approval granting up to 180 days to regain compliance. The delay is attributed to the evaluation of the impact of SEC guidance on accounting for warrants issued by SPACs.
- The notice does not have an immediate effect on the trading of the Company's securities.
- The Company failed to file its Form 10-Q on time, breaching Nasdaq Listing Rule 5250(c)(1).
- The filing delay is attributed to complexities in evaluating SEC guidance on warrants, which could indicate potential financial reporting challenges.
Ignyte Acquisition Corp. (NASDAQ:IGNYU) (the “Company”) today announced that on May 28, 2021 it received a notice from Nasdaq Regulation indicating that, as a result of not having timely filed its Quarterly Report on Form 10-Q for the period ended March 31, 2021 (the “Form 10-Q”), the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the Securities and Exchange Commission (the “SEC”).
The Nasdaq notice has no immediate effect on the listing or trading of the Company’s units, Class A ordinary shares or warrants on the Nasdaq Capital Market. The Notice provides that the Company must submit a plan to regain compliance with Nasdaq Listing Rule 5250(c)(1) by July 26, 2021. If the plan is accepted by Nasdaq, then Nasdaq can grant the Company up to 180 calendar days from the due date of the Form 10-Q, or November 22, 2021, to regain compliance.
As the Company reported in its Form 12b-25 filed with the SEC on May 17, 2021, the Company is working diligently to complete the Form 10-Q as soon as possible; however, given the scope of the process for evaluating the impact on the Company’s financial statements of the Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) issued by the staff of the SEC on April 12, 2021, the Company is not in a position to file the Form 10-Q until after the completion of this process.
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 prospectus for its initial public offering filed with the SEC. The Company undertakes no obligation to update these statements for revisions or changes after the date of this press release, except as required by law.
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