SMX Announces Receipt of Nasdaq Listing Delinquency Notice
- None.
- The bid price of SMX's ordinary shares on the Nasdaq Capital Market was below $1.00 for 30 consecutive business days, leading to the delinquency notification from Nasdaq.
Insights
The notification of delinquency from Nasdaq is a significant event for SMX PLC, indicating a breach of the minimum bid price requirement. This can have various implications for the company's stock liquidity and investor perception. Companies facing such issues often consider measures like reverse stock splits to elevate their share price above the $1 threshold, which could temporarily stabilize the stock but may not address underlying valuation concerns. Investor confidence can be shaken by such notices, potentially leading to increased volatility in the company's share price.
Furthermore, prolonged non-compliance could result in delisting, which would force the stock to trade on less-regulated markets, typically resulting in lower visibility and reduced trading volumes. This can lead to difficulties in raising capital and may affect institutional investor interest. For current shareholders, the risk of dilution or limited marketability of their shares increases.
The receipt of a delinquency notification is a critical financial event that often prompts a thorough review of a company's operational and strategic plans. For SMX PLC, the focus will likely be on identifying and implementing strategies to improve its financial health and market valuation. The company's ability to regain compliance within the 180-day period will be closely watched by investors as it reflects the management's capability to address the issues at hand effectively.
From a financial perspective, short-term remedial actions taken by the company to boost share price could involve cost-cutting measures, strategic partnerships, or asset sales. Long-term strategies might include business model adjustments or exploring new revenue streams. It's essential for stakeholders to monitor the company's financials and any strategic shifts closely, as these will be indicative of the company's potential to recover from its current position.
The Nasdaq Listing Rule 5550(a)(2) stipulates the minimum bid price that a company must maintain to stay listed on the exchange. The legal implications of receiving a delinquency notification include a structured timeline for compliance, with specific milestones and disclosures required. The company's ability to meet these legal requirements within the given period is critical to avoid delisting. It is also important for the company to maintain transparent communication with its shareholders regarding the steps being taken to address the compliance issue.
From a legal standpoint, the company must also ensure that all actions taken to resolve the bid price issue are in accordance with securities laws and regulations to avoid further legal complications. The company's report on Form 6-K is a regulatory filing that provides investors with updates on these matters and it is a key document for assessing the company's compliance trajectory and legal strategy.
The Company is addressing the matter and is working to regain compliance within the 180 calendar day compliance period under Nasdaq rules.
Please refer to the Company's Report on Form 6-K filed with the Securities and Commission on January 26, 2023 for further information.
About SMX:
SMX is a publicly traded company renowned for its pioneering technology in marking, tracking, measuring, and digital platform integration. SMX's solutions are designed to support businesses in their transition to a low-carbon economy, offering end-to-end traceability and quality assurance across various sectors.
For more information, contact:
SMX GENERAL ENQUIRIES
E: info@securitymattersltd.com
Company Website: http://www.smx.tech
Forward-Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example, the Company's ability to regain compliance with applicable Nasdaq standards or comply with the continued listing standards of Nasdaq even if the Company regains compliance. These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company's shares on Nasdaq; changes in applicable laws or regulations; any lingering effects of the COVID-19 pandemic on SMX's business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which SMX operates; the risk that SMX and its current and future collaborators are unable to successfully develop and commercialize SMX's products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that SMX is unable to secure or protect its intellectual property; the possibility that SMX may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in SMX's filings from time to time with the Securities and Exchange Commission.
/PRNewswire -- Jan. 26, 2024/
SOURCE SMX
FAQ
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