Metalpha Receives Notification of Deficiency from The Nasdaq Stock Market LLC

Rhea-AI Summary

Metalpha Technology Holding (Nasdaq: MATH) has received a notification from Nasdaq regarding non-compliance with listing rules due to the delayed filing of its annual report (Form 20-F) for the fiscal year ended March 31, 2024. The company has until October 14, 2024, to submit a compliance plan to Nasdaq. If accepted, Metalpha could be granted an extension until February 10, 2025, to regain compliance.

The delay in filing is attributed to additional time needed for report preparation. Metalpha assures it is working diligently to complete and file the 2024 Form 20-F as soon as possible. This notification does not immediately affect the listing or trading of Metalpha's ordinary shares on the Nasdaq Capital Market.

Positive

• No immediate effect on Metalpha's Nasdaq listing or share trading
• Potential extension until February 10, 2025, to regain compliance if plan is accepted

Negative

• Non-compliance with Nasdaq Listing Rule 5250(c)(1) due to delayed annual report filing
• Risk of potential delisting if compliance is not regained within the given timeframe

Insights

Financial Analyst

Metalpha's failure to file its annual report on time is a red flag for investors. This non-compliance with Nasdaq listing rules could potentially lead to delisting if not addressed promptly. The company has until October 14, 2024 to submit a compliance plan and if accepted, may have until February 10, 2025 to regain compliance. This extended timeline suggests significant underlying issues, possibly related to financial reporting or audit complexities. The delay in filing raises questions about the company's internal controls and financial health. Investors should be cautious as this situation often precedes more serious financial disclosures or restatements. The market typically reacts negatively to such news, potentially impacting MATH's stock price and liquidity in the short term.

Legal Expert

The notification from Nasdaq puts Metalpha in a precarious legal position. While there's no immediate threat of delisting, the company must navigate a complex regulatory landscape to maintain compliance. Key legal considerations include:

• Potential SEC investigations into the reasons for the delayed filing
• Risk of shareholder lawsuits alleging inadequate disclosure or mismanagement
• Increased scrutiny of the company's corporate governance practices

Metalpha's ability to file the Form 20-F promptly and address any underlying issues will be important in mitigating legal risks. The extended compliance period offers some breathing room, but also increases the pressure to resolve any internal control or reporting deficiencies swiftly to avoid more severe regulatory consequences.

Market Research Analyst

This compliance issue could significantly impact Metalpha's market position and investor perception. In the crypto wealth management sector, trust and regulatory compliance are paramount. The delayed filing may:

• Erode investor confidence, potentially leading to a sell-off
• Hinder the company's ability to raise capital or pursue strategic partnerships
• Provide an advantage to competitors who can tout their timely filings and regulatory compliance

Moreover, in the volatile crypto market, transparency is crucial. This incident may raise doubts about Metalpha's ability to navigate the complex regulatory environment of digital assets. The company's response and the speed at which it resolves this issue will be critical in maintaining its market position and stakeholder trust in an industry where reputation can make or break a company.

HONG KONG, Aug. 19, 2024 /PRNewswire/ -- Metalpha Technology Holding Limited (Nasdaq: MATH) (the "Company" or "Metalpha"), a global digital asset-focused wealth management company, today announced that on August 15, 2024 it has received a written notice from The Nasdaq Stock Market LLC (the "Nasdaq") which states that, as a result of not having timely filed its annual report on Form 20-F for the fiscal year ended March 31, 2024 (the "2024 Form 20-F"), Metalpha is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic reports with the Securities and Exchange Commission (the "SEC"). This notice has no immediate effect on the listing or trading of Metalpha's ordinary shares on the Nasdaq Capital Market.

The Company is required by Nasdaq to submit its plan to regain compliance within 60 calendar days, or no later than October 14, 2024. If the plan is accepted by Nasdaq, the Company can be granted up to 180 calendar days from the 2024 Form 20-F's due date, or until February 10, 2025, to regain compliance.

The Company was not able to file the 2024 Form 20-F by its due date primarily due to the additional time needed to prepare the 2024 Form 20-F, as set forth in the Form 12b-25 submitted to the SEC on July 31, 2024. Metalpha continues to work diligently to complete the 2024 Form 20-F and strives to file it with the SEC as soon as reasonably practicable.

About Metalpha Technology Holding Limited

Founded in 2015, Metalpha Technology Holding Limited (Nasdaq: MATH) went public on October 20, 2017. The listed Company, through its subsidiaries, is dedicated to providing investing and 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 crypto 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.

View original content:https://www.prnewswire.com/news-releases/metalpha-receives-notification-of-deficiency-from-the-nasdaq-stock-market-llc-302225252.html

SOURCE Metalpha Technology Holding Limited

FAQ

Why did Metalpha (MATH) receive a deficiency notice from Nasdaq?

Metalpha (MATH) received a deficiency notice from Nasdaq for not timely filing its annual report on Form 20-F for the fiscal year ended March 31, 2024, violating Nasdaq Listing Rule 5250(c)(1).

What is the deadline for Metalpha (MATH) to submit its compliance plan to Nasdaq?

Metalpha (MATH) must submit its plan to regain compliance to Nasdaq by October 14, 2024, which is 60 calendar days from the notification date.

How long does Metalpha (MATH) have to regain compliance with Nasdaq listing rules?

If Nasdaq accepts Metalpha's (MATH) compliance plan, the company could be granted up to 180 calendar days from the Form 20-F due date, or until February 10, 2025, to regain compliance.

Will Metalpha's (MATH) stock continue trading on Nasdaq despite the deficiency notice?

Yes, the deficiency notice has no immediate effect on the listing or trading of Metalpha's (MATH) ordinary shares on the Nasdaq Capital Market.