Metalpha Announces Notification of Delinquency from The Nasdaq Stock Market LLC

Rhea-AI Summary

Metalpha Technology Holding (Nasdaq: MATH) received a notice from Nasdaq regarding non-compliance with listing rules due to failure to file required financial documents. The company has 60 days to submit a proposal for compliance.

Positive

• None.

Negative

• Non-compliance with Nasdaq's Listing Rules due to failure to file required financial documents.

Insights

Financial Regulatory Expert

The notification received by Metalpha Technology Holding Limited from Nasdaq is a serious matter, as it pertains to the company's adherence to important financial reporting requirements. The delay in filing an interim balance sheet and income statement is often seen as a red flag by investors, as it could imply underlying issues with a company's financial health or internal controls. The regulatory framework is designed to maintain market integrity and protect investors by ensuring timely and accurate disclosure of financial information.

For stakeholders, the immediate concern would be the reason behind the delay. Is it due to operational difficulties, strategic realignment, or more systemic issues such as accounting irregularities? While the notice does not affect the current listing of Metalpha's ordinary shares, the potential for delisting exists if compliance is not achieved within the given timeframe. This could result in reduced liquidity and investor confidence, thereby potentially impacting the stock price negatively.

Furthermore, the company's ability to submit a satisfactory plan to regain compliance will be closely monitored. Acceptance of such a plan by Nasdaq could provide temporary relief, but the ultimate goal is to file the required Form 6-K. Failure to do so could lead to sanctions, including delisting, which would have significant repercussions for the company's access to capital markets and overall investor perception.

Market Analyst

The delay in filing financial statements can have a ripple effect on the market perception of Metalpha. Investors and analysts rely heavily on periodic financial disclosures to assess a company's performance and make informed decisions. When a company does not meet filing deadlines, it casts doubt on the reliability of its financial reporting, which can lead to increased volatility in its stock price.

While the market may react negatively in the short term, it's important to consider the broader context of the digital asset industry, which is known for its rapid evolution and regulatory challenges. The company's focus on digital asset wealth management may expose it to unique operational risks that could contribute to such delays. However, if Metalpha is able to articulate a clear and credible plan to regain compliance, it may mitigate some of the immediate concerns of market participants.

Long-term implications will depend on the company's ability to address the root causes of the delay and to improve its reporting processes. A successful resolution could demonstrate resilience and a commitment to transparency, potentially strengthening investor trust. Conversely, a failure to regain compliance could tarnish the company's reputation and have lasting negative effects on its market standing.

HONG KONG, April 10, 2024 /PRNewswire/ -- Metalpha Technology Holding Limited (Nasdaq: MATH) (the "Company" or "Metalpha"), a global digital asset-focused wealth management company, announced today that it received a notice (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") on April 8, 2024 indicating that the Company is not currently in compliance with Nasdaq's Listing Rules (the "Listing Rules") due to the Company's failure to file an interim balance sheet and income statement as of and for the six months ended September 30, 2023 on Form 6-K with the Securities and Exchange Commission ("SEC") . Pursuant to Listing Rule 5250(c)(2), the Company was required to file such Form 6-K no later than six months following the end of the quarter ended September 30, 2023, or March 31, 2024 (the "Due Date"). As of the date of this press release, the Company has not yet filed the required Form 6-K.

The Notice has no immediate effect on the listing of the Company's ordinary shares. Pursuant to the Notice, the Company has 60 calendar days from the date of the Notice, or until June 7, 2024, to submit a proposal to regain compliance with the Listing Rules. If Nasdaq accepts the Company's proposal, Nasdaq may grant the Company an extension of up to 180 calendar days from the Due Date, or until September 27, 2024, to regain compliance with the Listing Rules. The Company intends to fully comply with the time period afforded in the Notice and is actively working on its proposal to regain compliance with the Listing Rules.

About Metalpha Technology Holding Limited

Founded in 2015, Metalpha Technology Holding Limited (Nasdaq: MATH) went public on October 20, 2017. The listed Company is dedicated to providing investing and digital asset-focused wealth management services with a full-service, institutional-grade platform. With dedicated blockchain expertise, the Company aims to become a leader in the field of digital asset-focused wealth management services, bringing robust innovation and transparency to the customers and businesses it serves.

Forward-Looking Statements

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management's control. These statements involve risks and uncertainties that may cause Metalpha's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

Contact

Yiwei Wang
info@metalpha.finance 

View original content:https://www.prnewswire.com/news-releases/metalpha-announces-notification-of-delinquency-from-the-nasdaq-stock-market-llc-302112774.html

SOURCE Metalpha Technology Holding Limited

FAQ

Why did Metalpha receive a notice from Nasdaq?

Metalpha received a notice from Nasdaq due to non-compliance with listing rules because of the failure to file an interim balance sheet and income statement as required.

What is the deadline for Metalpha to submit a proposal for compliance?

Metalpha has 60 calendar days from the date of the Notice, until June 7, 2024, to submit a proposal to regain compliance with Nasdaq's Listing Rules.

What happens if Nasdaq accepts Metalpha's proposal?

If Nasdaq accepts Metalpha's proposal, they may grant the company an extension of up to 180 calendar days from the Due Date, until September 27, 2024, to regain compliance with the Listing Rules.

Is the listing of Metalpha's ordinary shares immediately affected by the Notice?

The Notice has no immediate effect on the listing of Metalpha's ordinary shares, but the company must work on regaining compliance within the given timeframe.