MultiMetaVerse Holdings Limited Receives Nasdaq Notification Regarding Minimum Bid Price and Minimum Market Value of Listed Securities

Rhea-AI Summary

MultiMetaVerse Holdings has received a notification from Nasdaq regarding non-compliance with two listing requirements: the minimum bid price of $1.00 per share and the minimum market value of listed securities of $35 million. The company failed to regain compliance during the extension period ending October 14, 2024. MultiMetaVerse now has until October 22, 2024 to request a hearing before the Nasdaq Hearings Panel, which it intends to do.

If no hearing is requested, trading of the company's Class A ordinary shares and warrants will be suspended on October 24, 2024, and a Form 25-NSE will be filed with the SEC to remove the securities from Nasdaq listing. In the event of delisting, the company's securities are expected to trade over-the-counter.

Positive

• None.

Negative

• Failed to meet Nasdaq's minimum bid price requirement of $1.00 per share
• Failed to meet Nasdaq's minimum market value of listed securities requirement of $35 million
• Facing potential delisting from Nasdaq
• Risk of trading suspension for Class A ordinary shares and warrants on October 24, 2024
• Possibility of being relegated to over-the-counter trading

Insights

Financial Analyst

This notification from Nasdaq is a significant concern for MultiMetaVerse Holdings The company's failure to meet two important listing requirements - the minimum bid price of $1.00 per share and the minimum market value of listed securities of $35 million - puts its Nasdaq listing in serious jeopardy.

The immediate impact is the risk of delisting, which could occur as soon as October 24, 2024, if the company doesn't request a hearing. Delisting would likely result in:

• Reduced liquidity for shareholders
• Potential loss of institutional investor interest
• Increased difficulty in raising capital
• Damage to the company's reputation and credibility

The move to over-the-counter trading, while providing a fallback option, is generally seen as a downgrade in the investment community. This situation reflects underlying financial or operational challenges that investors should scrutinize carefully. The company's ability to address these issues and present a convincing case to the Nasdaq Hearings Panel will be important for its near-term prospects.

Market Research Analyst

The notification MultiMetaVerse Holdings received indicates systemic issues beyond just share price. With a current market cap of only $13,880,544, the company is significantly below the $35 million minimum market value requirement. This suggests a fundamental lack of investor confidence or perceived value in the company's business model or growth prospects.

Key factors to consider:

• The extended period given to regain compliance has already passed, indicating prolonged underperformance.
• The company's intention to request a hearing suggests they believe they have a case for maintaining their listing.
• However, without substantial changes or new positive catalysts, the likelihood of quickly reversing the market's valuation seems low.

Investors should watch for any announcements regarding strategic changes, capital raises, or business pivots that could potentially restore market confidence. The outcome of the Nasdaq hearing, if requested, will be a critical event to monitor for the company's future trading status and investor sentiment.

SHANGHAI, Oct. 18, 2024 (GLOBE NEWSWIRE) -- MultiMetaVerse Holdings Limited (the “Company”) received a letter from The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company was not in compliance with the minimum bid price of $1.00 per share requirement under Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”) and the minimum market value of listed securities of $35 million requirement under Nasdaq Listing Rule 5550(b)(2) (the “MVLS Rule”), and had failed to regain compliance with the Bid Price Rule and the MVLS Rule during the extension period which ended on October 14, 2024. The Company has until October 22, 2024 to request a hearing before the Nasdaq Hearings Panel (the “Panel”),which it currently intends to do. If the Company does not request a hearing before the Panel by that date, trading in its Class A ordinary shares and warrants will be suspended at the opening of business on October 24, 2024 and a Form 25-NSE will be filed with the Securities and Exchange Commission (“SEC”) removing the securities from listing and registration on Nasdaq. In the event the Company’s securities are delisted from Nasdaq, its securities are expected to trade over-the-counter.

About MultiMetaVerse Holdings Limited

MultiMetaVerse Holdings Limited (NASDAQ: MMV) is an animation and entertainment company dedicated to providing a high-quality, immersive entertainment experience through original, user-generated, and professional user-generated content. MMV commenced animation production in 2015 under its signature Aotu World brand, which has attracted a broad following with its inspiring storyline and unique graphic style, particularly among younger audiences in China. By leveraging the company’s established user base, MMV has built a diverse product portfolio, including animated content, comic books, short videos, collectibles, stationery, consumer products, and mobile games across the Aotu World brand. It has also developed and augmented new brands, stories, and characters, such as Neko Album.

For more information, please visit https://www.multi-metaverse.com/.

For investor and media inquiries, please contact:

MultiMetaVerse Holdings Limited
Investor Relations
E-mail: ir@multi-metaverse.com 

FAQ

What Nasdaq requirements did MultiMetaVerse Holdings (MMV) fail to meet?

MultiMetaVerse Holdings failed to meet two Nasdaq requirements: the minimum bid price of $1.00 per share and the minimum market value of listed securities of $35 million.

When is the deadline for MultiMetaVerse Holdings (MMV) to request a hearing with Nasdaq?

The deadline for MultiMetaVerse Holdings to request a hearing with the Nasdaq Hearings Panel is October 22, 2024.

What will happen if MultiMetaVerse Holdings (MMV) doesn't request a Nasdaq hearing by the deadline?

If MultiMetaVerse Holdings doesn't request a hearing by October 22, 2024, trading of its Class A ordinary shares and warrants will be suspended on October 24, 2024, and a Form 25-NSE will be filed to remove the securities from Nasdaq listing.

Where might MultiMetaVerse Holdings (MMV) securities trade if delisted from Nasdaq?

If delisted from Nasdaq, MultiMetaVerse Holdings 's securities are expected to trade over-the-counter.