The NYSE American Accepts SatixFy’s Plan to Regain Compliance with Listing Standards

Rhea-AI Summary

SatixFy Communications Ltd. received notice from NYSE American stating that it has accepted the company's plan of compliance and granted a plan period through May 30, 2025, based on expected business progress and technological development. The company had previously received a notice of non-compliance with listing standards.

Positive

• None.

Negative

• The company's non-compliance with listing standards could potentially impact its valuation and investor confidence.

Insights

Market Research Analyst

The acceptance of SatixFy Communications Ltd.'s compliance plan by NYSE American is a significant development for the company's investors and stakeholders. The ability to maintain its listing is crucial, as delisting can severely limit a company's access to capital markets and reduce its visibility to potential investors. The plan's emphasis on expected business progress and technological development suggests that SatixFy is focusing on growth through new customers and orders, which could improve its financial health and stock valuation.

It is important to monitor the milestones and progress reports that will be periodically reviewed by the NYSE American. Investors should keep an eye on the company's ability to meet these targets within the given timeframe, as failure to do so could result in further compliance issues. The company's focus on technological advancements could also indicate a strategic move to differentiate itself in the competitive satellite communication market.

Financial Analyst

From a financial perspective, the notice of non-compliance SatixFy received in November 2023 likely put negative pressure on the company's stock as it signaled potential issues with financial stability or operational performance. The recent development of NYSE American accepting the company's compliance plan could alleviate some investor concerns. However, the long-term impact on the company's financials will depend on the successful execution of the Plan.

Investors should consider the implications of the Plan on the company's cost structure and capital requirements. If the Plan includes raising additional capital, it could potentially dilute existing shareholders. On the other hand, if the Plan leads to significant technological advancements and customer acquisition, it could enhance the company's revenue streams and profitability in the long run.

Legal Expert

Compliance with NYSE American continued listing standards is a legal requirement that ensures transparency and reliability for investors. The sections cited in the non-compliance notice typically relate to financial viability indicators such as shareholder's equity, earnings and assets. SatixFy's Plan to regain compliance indicates a proactive approach to addressing these issues, which is a positive sign from a governance perspective.

It is essential for the company to adhere strictly to the initiatives outlined in the Plan, as failure to do so could lead to more severe consequences, including delisting. Investors should be aware of the legal implications of such non-compliance and the company's commitment to rectifying the situation. The periodic reviews by the NYSE American will serve as checkpoints to ensure that the company remains on track with its compliance obligations.

REHOVOT, Israel--(BUSINESS WIRE)-- SatixFy Communications Ltd. (the “Company” or “SatixFy”) (NYSE American: SATX), a leader in next-generation satellite communication systems based on in-house-developed chipsets, announced that on February 6, 2024, it received written notice from the NYSE American LLC (“NYSE American”) stating that it has reviewed the Company’s January 5, 2024 plan of compliance addressing how it intends to regain compliance with certain NYSE American continued listing standards (the “Plan”) and determined to accept the Plan and grant a plan period for targeted completion of the Plan through May 30, 2025. The Plan is based in part on expected upcoming business progress and technological development, including potential positive announcements it expects to report of new customers and new orders that it believes should evidence that its valuation should be higher. The NYSE American will review the Company periodically for compliance with the initiatives outlined in the Plan.

This follows the prior written notice from the NYSE American, sent on November 30, 2023 stating that the Company is not in compliance with the continued listing standards, as set forth in Sections 1003(a)(i), 1003(a)(ii) and 1003(a)(iii) of the NYSE American Company Guide.

About SatixFy

SatixFy develops end-to-end next-generation satellite space and ground communications systems, including satellite multi beam digital antennas, user terminals and modems, based on powerful chipsets that it develops in house.

SatixFy’s products include modems that feature Software Defined Radio (SDR) and Fully Electronically Steered Multi Beam Antennas (ESMA) that support the advanced communications standard DVB-S2X. SatixFy’s innovative ASICs improve the overall performance of satellite communications systems, reduce the weight and power requirements of terminals and payloads, and save real estate for gateway equipment. SatixFy’s advanced VSATs and multi-beam fully electronically steered antenna arrays are optimized for a variety of mobile applications and services, using LEO, MEO and GEO satellite communications systems, for aero/in-flight connectivity systems, high-end communications-on-the-move applications, and more.

SatixFy is headquartered in Rehovot, Israel with additional offices in the UK, U.S. and Bulgaria.

For more information, please refer to www.SatixFy.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal and Israeli securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. For example, SatixFy is using forward looking statement in this press release when it discusses the methods it intends to use to regain compliance with the applicable NYSE American listing standards, including expected upcoming business progress and technological development, potential positive announcements the Company expects to report of new customers and new orders that it believes should evidence that its valuation should be higher. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among others: the Company's planned level of revenues and capital expenditures; the Company's available cash and its ability to obtain additional funding; the Company's ability to market and sell its products; legal and regulatory developments in the United States and other countries; the Company's ability to maintain its relationships with suppliers, distributors and other partners; the Company's ability to maintain or protect the validity of its patents and other intellectual property; political, economic and military instability in the Middle East, specifically in Israel; as well as those factors set forth in the Risk Factors section of the Company's Annual Report on Form 20-F for the year ended December 31, 2022 filed with the SEC on May 1, 2023, as amended, and other documents filed with or furnished to the SEC which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

SAT-FIN

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208992452/en/

Investor Contact:

Kenny Green & Ehud Helft, EK Global IR, satixfy@ekglobal.com

Media Contact:

Helena Itzhak / Aviv Sax Nahamoni, info@satixfy.com

Source: SatixFy

FAQ

What is the ticker symbol for SatixFy Communications Ltd.?

The ticker symbol for SatixFy Communications Ltd. is SATX.

When did SatixFy Communications Ltd. receive the notice from NYSE American?

SatixFy Communications Ltd. received the notice from NYSE American on February 6, 2024.

What is the plan period granted to SatixFy Communications Ltd. by NYSE American?

NYSE American granted a plan period for targeted completion of the Plan through May 30, 2025.

What were the reasons for the prior written notice from NYSE American to SatixFy Communications Ltd.?

The prior written notice from NYSE American stated that the company is not in compliance with the continued listing standards.

What are the potential positive announcements mentioned in the PR?

The potential positive announcements mentioned in the PR include new customers and new orders that the company expects to report.

What will NYSE American review the Company for?

NYSE American will review the Company periodically for compliance with the initiatives outlined in the Plan.