Delisting of Securities of SmileDirectClub, Inc.; Bellerophon Therapeutics, Inc.; Elys Game Technology, Corp.’; Athersys, Inc.; Borqs Technologies, Inc.; ContraFect Corporation; CohBar, Inc.; AgileThought, Inc.; Fat Projects Acquisition Corp.; Evelo Biosciences, Inc.; Troika Media Group, Inc.; Impel Pharmaceuticals Inc.; Fresh Tracks Therapeutics, Inc.; and Near Intelligence, Inc. from The Nasdaq Stock Market
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Insights
The delisting of multiple companies from the Nasdaq Stock Market signifies a substantial alteration in the availability of these companies' stocks to the general investing public. Delisting often occurs due to failure to meet regulatory requirements, which could include maintaining a minimum share price or failing to submit timely financial documentation. The immediate effect is typically a decrease in liquidity and a potential drop in investor confidence, as delisted stocks move to over-the-counter (OTC) markets, where they may be traded less frequently and with less regulatory oversight.
For stakeholders in SmileDirectClub, Inc. and the other mentioned companies, this move may lead to a reassessment of the intrinsic value of their investments. Given that these securities have already been suspended from trading, the impact might be somewhat mitigated as the market has had time to absorb the initial shock of suspension. However, the shift to OTC can result in wider bid-ask spreads and lower visibility, which could make it more challenging for investors to exit their positions without incurring significant losses.
From a market perspective, the delisting of companies can be indicative of broader industry trends or specific sector weaknesses. For instance, if a particular sector like biotech or technology is overrepresented in the delisting announcements, it may suggest underlying volatility or systemic issues within that sector. Investors might interpret this as a signal to exercise caution when considering similar stocks or to conduct more rigorous due diligence.
Additionally, the delisting of these companies could have a ripple effect, influencing peer companies and sector indices. It's important to monitor the market's response to these delistings, as it could affect investor sentiment and the valuation of related companies. While the direct financial impact on the market is limited to these specific stocks, the indirect effects on investor behavior and sector perceptions could be more far-reaching.
Delisting reflects a regulatory dimension of the stock market, underscoring the importance of compliance with the stringent listing standards set forth by exchanges like Nasdaq. These standards are designed to protect investors and ensure a fair and transparent market. For the companies involved, delisting represents a significant legal and administrative challenge. It may necessitate increased efforts to regain compliance and restore investor trust.
Moreover, the delisting process often triggers contractual obligations, such as the redemption of certain securities or the acceleration of debt maturity. Companies facing delisting must navigate complex legal terrain, balancing the need to address immediate compliance issues with the strategic goal of maintaining their financial stability and market presence.
NEW YORK, Dec. 26, 2023 (GLOBE NEWSWIRE) -- The Nasdaq Stock Market announced today that it will delist the common stock of SmileDirectClub, Inc. SmileDirectClub, Inc.’s securities were suspended on October 4, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of Bellerophon Therapeutics, Inc. Bellerophon Therapeutics, 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 common stock of Elys Game Technology, Corp. Elys Game Technology, Corp.’s securities were suspended on October 17, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of Athersys, Inc. Athersys, Inc.’s securities were suspended on October 18, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the ordinary shares of Borqs Technologies, Inc. Borqs Technologies, Inc.’s securities were suspended on October 27, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of ContraFect Corporation. ContraFect Corporation’s securities were suspended on November 9, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of CohBar, Inc. CohBar, Inc.’s securities were suspended on November 19, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the Class A common stock and warrants of AgileThought, Inc. AgileThought, Inc.’s securities were suspended on November 24, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the Class A ordinary shares, warrants, and unit of Fat Projects Acquisition Corp. Fat Projects Acquisition Corp.’s securities were suspended on December 1, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of Evelo Biosciences, Inc. Evelo Biosciences, Inc.’s securities were suspended on December 12, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock and warrants of Troika Media Group, Inc. Troika Media Group, Inc.’s securities were suspended on December 18, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of Impel Pharmaceuticals Inc. Impel Pharmaceuticals Inc.’s securities were suspended on December 18, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock of Fresh Tracks Therapeutics, Inc. Fresh Tracks Therapeutics, Inc.’s securities were suspended on December 19, 2023, and have not traded on Nasdaq since that time.
Nasdaq also announced today that it will delist the common stock and warrants of Near Intelligence, Inc. Near Intelligence, Inc.’s securities were suspended on December 19, 2023, 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 SmileDirectClub, Inc. (SDC)?
What is the reason behind the delisting of Bellerophon Therapeutics, Inc. (BLPH)?
When were the securities of Elys Game Technology, Corp. (ELYS) suspended?
Why is Athersys, Inc. (ATHX) being delisted by Nasdaq?
What led to the delisting of Borqs Technologies, Inc. (BRQS)?
Why is Nasdaq delisting ContraFect Corporation (CFRX)?
What caused the delisting of CohBar, Inc. (CWBR) by Nasdaq?
Why is Nasdaq delisting AgileThought, Inc. (AGLT)?
What led to the delisting of Fat Projects Acquisition Corp. (FPAC) by Nasdaq?
Why is Nasdaq delisting Evelo Biosciences, Inc. (EVLO)?
What caused the delisting of Troika Media Group, Inc. (TRKA) by Nasdaq?
Why is Nasdaq delisting Impel Pharmaceuticals Inc. (IMPL)?
What led to the delisting of Fresh Tracks Therapeutics, Inc. (FTRX) by Nasdaq?
Why is Nasdaq delisting Near Intelligence, Inc. (NI)?
