10X Capital Venture Acquisition Corp. III Receives NYSE Notice Regarding Noncompliance
- None.
- 10X III is currently not in compliance with Section 1003(b)(i) of the NYSE American LLC Company Guide due to having fewer than 300 public shareholders, which may lead to suspension and delisting procedures if not addressed
Insights
The notification from NYSE Regulation to 10X Capital Venture Acquisition Corp. III regarding its non-compliance with the NYSE American LLC Company Guide's requirement for minimum public shareholders is a crucial development for stakeholders. The stipulation of having fewer than 300 public shareholders puts the company at risk of delisting, which can significantly affect the stock's liquidity and market perception.
From a financial perspective, the potential delisting could lead to a decrease in investor confidence and a subsequent drop in the stock price. This situation may also impact the company's ability to raise capital and may increase borrowing costs. It is essential for the company to outline a robust plan to regain compliance, which might include strategies such as stock buybacks, mergers, or other financial instruments to increase the shareholder count.
Investors should monitor the company's progress closely, as the acceptance of the compliance plan and its successful execution could stabilize the stock's performance. Conversely, failure to comply could lead to volatility and possible exit from the market.
From a legal standpoint, the Notice from NYSE Regulation signifies that 10X Capital Venture Acquisition Corp. III must operate within a specific regulatory framework to maintain its listing status. The company's ability to submit an actionable plan by the Compliance Plan Due Date and to adhere to the agreed milestones will be critical to avoid the legal ramifications of delisting.
Delisting can have complex legal implications, including diminished shareholder rights and challenges in securities litigation due to reduced transparency. The company's legal team must ensure that the compliance plan aligns with corporate governance standards and shareholder interests to prevent potential legal disputes that could arise from a failure to meet the NYSE American's requirements.
The notice of non-compliance received by 10X Capital Venture Acquisition Corp. III could indicate underlying challenges in maintaining investor interest or market dynamics that have led to a reduced number of public shareholders. It is crucial for the company to analyze market trends and investor behavior to develop an effective strategy to attract and retain a broader investor base.
Understanding the competitive landscape and the attractiveness of the company's equity to investors is essential. The company must evaluate its market position, investment appeal and the effectiveness of its investor relations strategies. In the context of a broader market analysis, the company's response to this challenge could serve as a case study for similar situations faced by other publicly traded entities.
New York, NY, Jan. 31, 2024 (GLOBE NEWSWIRE) -- 10X Capital Venture Acquisition Corp. III (NYSE American: VCXB, VCXB.U, VCXB WS) (“10X III”), announced today that NYSE Regulation (“NYSER”), by letter dated January 29, 2024 (the “Notice”), notified 10X III that it is not currently in compliance with Section 1003(b)(i) of the NYSE American LLC Company Guide because 10X III has fewer than 300 public shareholders. The Notice provides that 10X III has until February 28, 2024 (the “Compliance Plan Due Date”) to submit a plan to NYSER outlining how it intends to cure the deficiency and regain compliance with the NYSE American LLC’s (the “NYSE American”) continued listing standards by January 14, 2025. The plan will be reviewed by NYSER. NYSER will either accept the plan, at which time 10X III will be subject to quarterly monitoring for compliance with this plan, or NYSER will not accept the plan and 10X III will be subject to suspension and delisting procedures. 10X III intends to submit a plan by the Compliance Plan Due Date.
The Notice and the procedures described above have no current effect on the continued listing of 10X III’s securities on the NYSE American, subject to 10X III’s compliance with the NYSE American’s other applicable listing requirements.
About 10X Capital Venture Acquisition Corp. III
10X Capital Venture Acquisition Corp. III (NYSE American: VCXB, VCXB.U, VCXB WS) is a special purpose acquisition company sponsored by 10X Capital, focused on identifying high growth businesses domestically and abroad and bringing them to the public markets. For more information visit https://www.10xspac.com/spaciii.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “will,” “expect,” “anticipated,” “estimated,” “believe,” “intend,” “plan,” “projection,” “outlook” or words of similar meaning. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside 10X III’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
Contact
ir@10xcapital.com
FAQ
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