Delisting of Securities of Latch, Inc.; Eloxx Pharmaceuticals, Inc.; Collective Audience, Inc. (f.k.a., ABRIC SPAC I); SeqLL Inc.; Nemaura Medical Inc.; LumiraDx Limited; Cemtrex Inc.; COMSovereign Holding Corp.; Global System Dynamics; Arrival; Nubia Brand International Corp.; The Alkaline Water Company Inc.; DMK Pharmaceuticals Corporation; MedAvail Holdings, Inc.; InVivo Therapeutics Holdings Corp.; and ADDvantage Technologies Group, Inc. from The Nasdaq Stock Market
- None.
- Delisting of multiple companies' securities due to suspension on Nasdaq.
- Negative impact on the affected companies and their shareholders.
- Potential repercussions on the companies' market value and investor confidence.
Insights
The delisting of multiple companies from the Nasdaq stock market is a significant event that can have a ripple effect across the investment community. Delisting often occurs when a company fails to meet the exchange's financial and regulatory requirements, which can include maintaining a minimum share price, filing periodic financial reports, or having a sufficient number of publicly-held shares.
From a market perspective, these delistings could indicate underlying economic trends or sector-specific issues. Investors and analysts may interpret the concentration of delistings in a particular industry as a sign of distress within that sector. For instance, if a majority of the delisted companies are from the healthcare sector, this could suggest regulatory challenges or funding difficulties in that space.
Furthermore, delistings can impact investor sentiment, as they may decrease confidence in the market's stability. This can lead to increased volatility as investors re-evaluate their portfolios and consider the implications of companies failing to meet listing standards.
For individual companies, delisting from a major exchange like Nasdaq is a significant financial event. It often leads to reduced visibility and liquidity, as the securities move to over-the-counter (OTC) markets where they may be traded less frequently and at lower volumes. This can result in a wider bid-ask spread, making it more difficult for shareholders to sell their positions without experiencing a significant loss.
Companies that are delisted also face challenges in raising capital since being on a major exchange is often seen as a stamp of approval that can attract institutional investors. Without this, companies may have to rely on alternative financing methods, which are typically more expensive and can dilute existing shareholders' value.
The announcement of a delisting can also have immediate and direct effects on a company's stock price, often causing a sharp decline as investors react to the negative news. Shareholders of these companies should closely monitor the situation and understand the potential for increased risks and lower liquidity.
Delisting proceedings are a legal process governed by the exchange's rules and the regulatory framework of the Securities and Exchange Commission (SEC). Companies facing delisting are usually provided with an opportunity to appeal the decision or to come into compliance with the listing requirements. The transparency of this process is important for maintaining trust in the financial markets.
Companies that are delisted due to non-compliance with financial reporting have a legal obligation to continue to provide information to investors, even if they are traded OTC. This is important for maintaining a fair market where investors have access to the information needed to make informed decisions.
Moreover, the legal implications of delisting can extend to potential class-action lawsuits if shareholders feel that the company's management has failed to uphold their fiduciary duties. This can lead to additional scrutiny and potential legal costs for the delisted entities.
NEW YORK,, March 20, 2024 (GLOBE NEWSWIRE) -- The Nasdaq Stock Market announced today that it will delist the common stock and warrants of Latch, Inc. Latch, Inc.’s securities were suspended on August 10, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of Eloxx Pharmaceuticals, Inc. Eloxx Pharmaceuticals, Inc.’s securities were suspended on October 16, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the warrants of Collective Audience, Inc. Collective Audience, Inc.’s warrants were suspended on November 3, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock and warrants of SeqLL Inc. SeqLL Inc.’s securities were suspended on November 14, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of Nemaura Medical Inc. Nemaura Medical Inc.’s securities were suspended on January 5, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock and warrant of LumiraDx Limited. LumiraDx Limited’s securities were suspended on January 9, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the Series 1 Preferred Stock of Cemtrex Inc. Cemtrex Inc.’s shares of Series 1 Preferred Stock were suspended on January 22, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the perpetual preferred stock, common stock, and warrants of COMSovereign Holding Corp. COMSovereign Holding Corp.’s shares of perpetual preferred stock were suspended on January 23, 2024; the company’s shares of common stock and warrants were suspended on January 31, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock, units, and warrants of Global System Dynamics. Global System Dynamics’s securities were suspended on January 24, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the ordinary shares of Arrival. Arrival’s securities were suspended on January 30, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the warrant of Nubia Brand International Corp. Nubia Brand International Corp.’s securities were suspended on February 5, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of The Alkaline Water Company Inc. The Alkaline Water Company Inc.’s securities were suspended on February 6, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of DMK Pharmaceuticals Corporation. DMK Pharmaceuticals Corporation’s securities were suspended on February 7, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of MedAvail Holdings, Inc. MedAvail Holdings, Inc.’s securities were suspended on February 13, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of InVivo Therapeutics Holdings Corp. InVivo Therapeutics Holdings Corp.’s securities were suspended on February 13, 2024, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of ADDvantage Technologies Group, Inc. ADDvantage Technologies Group, Inc.’s securities were suspended on February 13, 2024, and have not traded on Nasdaq since that time.
For more information about The Nasdaq Stock Market, visit the Nasdaq Web site at http://www.nasdaq.com. Nasdaq’s rules governing the delisting of securities can be found in the Nasdaq Rule 5800 Series, available on the Nasdaq Web site: https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5800-series.
FAQ
Why is Nasdaq delisting the common stock and warrants of various companies including Latch, Inc. and Eloxx Pharmaceuticals, Inc.?
When were the securities of Collective Audience, Inc. suspended by Nasdaq?
Which company had its perpetual preferred stock, common stock, and warrants delisted by Nasdaq on January 23, 2024?
When were the securities of Arrival suspended by Nasdaq?
What happened to the common stock of The Alkaline Water Company Inc. on February 6, 2024?
