Movella Files Form 25 to Voluntarily Delist its Securities from The Nasdaq Stock Market LLC
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Insights
The voluntary delisting of Movella Holdings Inc. from the Nasdaq is a significant move that warrants careful analysis. Delisting often occurs when a company wants to reduce regulatory burdens and costs associated with being publicly traded. In this case, the transition to OTC Markets Group could indicate a strategic shift or a response to challenges in maintaining Nasdaq listing requirements, such as minimum bid price or market value of publicly held shares. Stakeholders should be aware that trading on OTC markets generally involves less liquidity, potentially leading to more significant price volatility and lower trading volumes.
Investors should consider the implications of delisting, including the reduced transparency and regulatory oversight that comes with trading on OTC markets. These changes could affect shareholder value and investor perception. The company's future financial health and operational performance will be critical factors in determining the impact of this transition on the stock's long-term viability and attractiveness to potential investors.
Delisting from a major exchange like Nasdaq and moving to an OTC market is often perceived negatively by the market, as it can reflect underlying issues within the company or a less optimistic outlook by management on the ability to comply with stringent exchange requirements. Movella's move could dampen institutional investor interest, as many funds have mandates that restrict investing in non-exchange-listed securities.
From a market perspective, Movella's future access to capital might be more restricted, as OTC markets do not provide the same level of visibility and investor confidence as major exchanges. This could impact the company's ability to raise funds through new equity offerings. Additionally, existing and potential shareholders should be cautious, as OTC-listed companies are typically subject to less rigorous reporting standards, potentially impacting the quality and frequency of information available to make informed investment decisions.
The filing of Form 25 with the SEC is a formal step in the delisting process and indicates Movella's intention to proceed with the delisting. Shareholders should note that following the suspension of trading, they may face challenges in selling their shares due to the expected decrease in liquidity. The legal ramifications of delisting include a potential decrease in shareholder protections and governance standards that are mandated for companies listed on major exchanges.
It is essential for shareholders to review the company's reasons for delisting and to monitor any communication from Movella regarding the transition. The legal expert's role is to evaluate compliance with securities laws during this process and to ensure that the rights of shareholders are not unduly compromised. The move to an OTC market does not absolve the company of its legal obligations to its shareholders, but it does alter the landscape in which those obligations are met.
HENDERSON, Nev., April 01, 2024 (GLOBE NEWSWIRE) -- Movella Holdings Inc. (NASDAQ: MVLA) (“Movella” or the “Company”), a leading full-stack provider of sensors, software, and analytics that enable the digitization of movement, announced today that it filed a Form 25 with the Securities and Exchange Commission (the “SEC”) to voluntarily delist its shares of common stock and warrants, each exercisable for one share of common stock at an exercise price of
The Company expects that trading will be suspended on April 2, 2024 prior to the market opening and that the delisting will occur ten days after the filing of Form 25. Following the delisting, any trading in the Securities would only occur in privately negotiated sales and potentially on an over‐the‐counter market. The Company expects to have its Securities quoted on a market operated by OTC Markets Group Inc. (the “OTC”) around or after April 12th so that a trading market may continue to exist for the Securities. There is no assurance, however, that a broker will continue to make a market in the Securities or that trading thereof will continue on an OTC market or otherwise.
About Movella Holdings Inc.
Movella is a leading full-stack provider of sensors, software, and AI analytics that transforms movement data into lifelike animations and valuable, actionable insights. Our motion capture technology enables a wide array of innovative solutions in end markets including entertainment and gaming, health and sports, and automation and mobility. We bring meaning to movement for some of the most esteemed global brands including Electronic Arts, EPIC Games, 20th Century Studios, Netflix, BMW, Toyota, and Siemens. To learn more, please visit www.movella.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect the beliefs and assumptions of Movella’s management as of the date hereof. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words, and similar expressions or the negative thereof, are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: the anticipated timing of the suspension of trading and the delisting of the Company’s Securities from Nasdaq, the potential trading of the Company’s Securities after the delisting, the Company’s expectations regarding quotation of the Securities on the OTC (including that a trading market may not continue to exist for the Securities on the OTC or otherwise) and anticipated timing thereof, and the timing of actions by Nasdaq or the OTC, including with respect to the suspension of trading and delisting of the Securities or any quotation thereof on the OTC. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including, but not limited to, the risks disclosed in Movella’s SEC filings, including Movella’s annual report on Form 10-K, quarterly reports on Form 10-Q, and subsequent filings made by Movella with the SEC. Further, if any of the assumptions underlying the forward-looking statements prove incorrect, actual results could differ materially from the results expressed or implied by these forward-looking statements. There may be additional risks that the Company presently knows or currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. These forward-looking statements speak only as of the date on which they are made. Except as required by law, Movella undertakes no obligation to update or revise any forward-looking statements.
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FAQ
Why is Movella Holdings Inc. delisting its common stock and warrants from Nasdaq?
When will trading be suspended for Movella Holdings Inc. Securities?
What is the expected timeline for the delisting of Movella Holdings Inc. Securities?
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