Volato Announces Acceptance of Compliance Plan by NYSE American

Rhea-AI Summary

Volato Group (NYSE American: SOAR) has announced that the NYSE American has accepted its compliance plan for continued listing on the exchange. This follows a notice received on June 18, 2024, stating that Volato was not in compliance with listing standards related to stockholders' equity and reported losses. The company submitted a plan by July 18, 2024, and on September 5, 2024, received notice of its acceptance.

The NYSE American has granted Volato a plan period through December 18, 2025, during which the company will be subject to quarterly reviews. If Volato fails to regain compliance or make sufficient progress, the NYSE American may initiate delisting proceedings. The company's stock will continue to be listed during this period, and its business operations and SEC reporting requirements remain unaffected.

Positive

• NYSE American accepted Volato's compliance plan
• Company granted extension until December 18, 2025 to regain compliance
• Stock continues to be listed on NYSE American during the plan period

Negative

• Company not in compliance with NYSE American listing standards
• Risk of delisting if compliance is not regained by December 18, 2025
• Reported losses from continuing operations in recent fiscal years
• Stockholders' equity below required thresholds

Insights

Financial Analyst

The NYSE American's acceptance of Volato's compliance plan is a temporary reprieve for the company, but it doesn't address the underlying financial challenges. The company's failure to meet the $2 million and $4 million stockholders' equity requirements, coupled with consistent losses, signals significant financial distress.

Investors should be cautious as Volato has until December 18, 2025, to regain compliance, a substantial timeframe that suggests a complex turnaround is needed. The quarterly reviews will be critical checkpoints. If Volato fails to show progress, it risks earlier delisting, which could severely impact stock liquidity and value.

This situation underscores the importance of monitoring not just revenue and profit, but also balance sheet health in small-cap stocks. The extended compliance period provides a window for potential strategic moves, but also increases uncertainty for investors.

Legal Expert

Volato's acceptance into NYSE American's compliance plan is a double-edged sword from a legal perspective. While it provides a lifeline to maintain listing status, it also places the company under heightened scrutiny and disclosure obligations.

The company must now navigate a delicate balance between transparency and investor relations. Any material developments in their compliance efforts will likely require prompt disclosure, potentially affecting stock volatility. Moreover, the extended compliance period may expose Volato to increased shareholder litigation risk if the turnaround efforts falter.

Investors should pay close attention to Volato's future SEC filings and press releases for updates on compliance progress and any changes in risk factors related to their listing status.

Market Research Analyst

Volato's listing challenges reflect broader trends in the small-cap aviation sector, where companies often struggle with high capital requirements and volatile demand. The extended compliance period until December 2025 coincides with projected recovery phases in the aviation industry, potentially giving Volato a favorable macro backdrop for its turnaround efforts.

However, investors should consider that Volato's competitors may be better positioned to capitalize on industry recovery, potentially eroding Volato's market share. The company's ability to raise capital during this period will be crucial, as improved stockholders' equity is key to regaining compliance.

This situation highlights the importance of robust due diligence in small-cap investing, particularly in capital-intensive industries where balance sheet strength is paramount for long-term viability.

ATLANTA--(BUSINESS WIRE)-- Volato Group, Inc (“Volato,” or the “Company”) (NYSE American: SOAR), today announced that the NYSE American LLC (the "NYSE American") has accepted the Company's plan of compliance for continued listing on the exchange.

As previously reported, on June 18, 2024, the Company received a notice (the "notice") from the NYSE American LLC (the “NYSE American”) advising the Company that it is not in compliance with the NYSE American continued listing standards set forth in Section 1003(a)(i) of the NYSE American Company Guide (the “Company Guide”) requiring a company to have stockholders’ equity of at least $2.0 million if it has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years and Section 1003(a)(ii) of the Company Guide requiring a company to have stockholders’ equity of at least $4.0 million if it has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years.

The Company was required to submit a plan to the NYSE American by July 18, 2024 to the NYSE American outlining actions it has taken or will take to regain compliance with the continued listing standards by December 18, 2025. The Company submitted a plan prior to the deadline.

On September 5, 2024, the Company received notice from the NYSE American that it had accepted the Company's plan and granted a plan period through December 18, 2025. During the plan period the Company will be subject to quarterly review to determine if it is making progress consistent with the plan. If the Company does not regain compliance with the NYSE American listing standards by December 18, 2025, or if the Company does not make sufficient progress consistent with its plan, then the NYSE American may initiate delisting proceedings.

The Company's stock will continue to be listed on the NYSE American during the plan period pursuant to an extension. The Company's receipt of such notification from the NYSE American does not affect the Company's business, operations or reporting requirements with the U.S. Securities and Exchange Commission.

The Company can provide no assurances that it will be able to make progress with respect to its plan that NYSE American will determine to be satisfactory, that it will regain compliance with Section 1003(a)(i) and (ii) of the Company Guide on or before the expiration of the plan period, or that developments and events occurring subsequent to the Company's formulation of the plan or its acceptance by the NYSE American will not adversely affect the Company's ability to make sufficient progress and/or regain compliance with Section 1003(a)(i) and (ii) of the Company Guide on or before the expiration of the plan period or result in the Company's failure to be in compliance with other NYSE American continued listing standards.

Cautionary Note on Forward Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of the control of Volato that could cause actual results to differ materially from the results discussed in the forward-looking statements. The words "anticipate," "believe," continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that statement is not forward-looking. These forward-looking statements are subject to a number of risks, uncertainties and assumptions that could cause actual events and results to differ materially from those contained in such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in the Annual Report on Form 10-K, filed with the SEC on March 26, 2024 and other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Volato undertakes no obligation and does not intend to update or revise these forward-looking statements, whether because of new information, future events, or otherwise.

About Volato

Volato (NYSE American: SOAR) is a leader in private aviation, redefining air travel through modern, efficient, and customer-designed solutions. Volato provides a fresh approach to fractional ownership powered by advanced, proprietary mission control technology. Volato's fractional programs uniquely offer flexible hours and a revenue share for owners across the world’s largest fleet of HondaJets, which are optimized for missions of up to four passengers. For more information visit www.flyvolato.com.

All Volato Part 135 charter flights are operated by its DOT/FAA-authorized air carrier subsidiary (G C Aviation, Inc. d/b/a Volato) or by an approved vendor air carrier.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909090324/en/

For Media:

media@flyvolato.com



For Investors:

investors@flyvolato.com

Source: Volato Group, Inc.

FAQ

What is Volato's current status with NYSE American listing?

Volato (SOAR) is not in compliance with NYSE American listing standards but has had its compliance plan accepted, granting it an extension until December 18, 2025 to regain compliance.

What are the specific NYSE American listing standards Volato (SOAR) has violated?

Volato has violated Section 1003(a)(i) and (ii) of the NYSE American Company Guide, requiring stockholders' equity of at least $2 million or $4 million depending on reported losses in recent fiscal years.

When did Volato (SOAR) receive the non-compliance notice from NYSE American?

Volato received the non-compliance notice from NYSE American on June 18, 2024.

What happens if Volato (SOAR) fails to regain compliance by December 18, 2025?

If Volato fails to regain compliance or make sufficient progress by December 18, 2025, NYSE American may initiate delisting proceedings.