Versus Systems Regains Compliance with Nasdaq Minimum Bid Price Requirement

Rhea-AI Summary

Versus Systems Inc. has regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) after conducting a 1-for-16 reverse split of its common shares. The Company's common shares were required to maintain a minimum closing bid price of $1.00 or more for at least 10 consecutive business days, a requirement met on January 12, 2024.

Insights

Financial Analyst

The announcement by Versus Systems Inc. regarding its regained compliance with Nasdaq's minimum bid price requirement is a critical development for the company's financial standing and investor perception. The reverse stock split, a tactical maneuver often employed by companies to elevate their share price, has successfully brought the company's stock back into compliance with Nasdaq's standards. This action typically reduces the number of shares outstanding, thereby increasing the price per share to meet regulatory requirements.

From a financial analysis standpoint, the regained compliance may avert the risk of delisting, which can have deleterious effects on a company's liquidity and ability to raise capital. However, it is important to scrutinize the underlying fundamentals of the company. While the reverse split addresses the immediate compliance issue, it does not inherently solve operational or profitability challenges. Investors should carefully consider the company's performance metrics, future earnings potential and market position relative to competitors to gauge long-term viability.

Market Research Analyst

Regaining compliance with Nasdaq's minimum bid price requirement is a positive signal to the market, potentially bolstering investor confidence in Versus Systems Inc. It is essential to understand the broader market implications of such a move. Historically, stocks trading below the $1 threshold are often perceived as less attractive by institutional investors and may face increased volatility. By executing a reverse split and exceeding the minimum bid price, Versus may now appeal to a wider range of investors, including institutions that may have previously been barred from investing in lower-priced stocks due to internal policies.

However, market reception to reverse splits can be mixed, as some investors view them as a cosmetic fix rather than a reflection of improved company fundamentals. Therefore, it is crucial to monitor the stock's performance and trading volume in the aftermath to assess whether the regained compliance will translate into sustained investor interest and whether the company can leverage this compliance milestone to execute its strategic initiatives effectively.

LOS ANGELES, Jan. 18, 2024 (GLOBE NEWSWIRE) -- Versus Systems Inc. (“Versus” or the “Company”) (Nasdaq: VS) announced that it received notice from The Nasdaq Stock Market LLC ("Nasdaq") on January 16, 2024 informing the Company that it has regained compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) (the "Rule") for continued listing on the Nasdaq Capital Market.

On January 23, 2023, Versus received notice from Nasdaq that the Company was not in compliance with the Rule, as its common shares failed to meet a closing bid price of $1.00 or more for 30 consecutive business days. The Company conducted a 1-for-16 reverse split of its common shares on December 28, 2023 to aid the compliance process.

To regain compliance with the Rule, the Company’s common shares were required to maintain a minimum closing bid price of $1.00 or more for at least 10 consecutive business days. This requirement was met on January 12, 2024.

About Versus Systems

Versus Systems Inc. is an engagement and rewards company that makes live events, games, shows, and apps more fun to watch and play. Versus adds interactive games, polling, trivia, predictive elements, and other win conditions to existing entertainment - whether in-venue or online - making the content more contextual, personal, and rewarding. Versus works with world class sports teams, leagues, venues, entertainment companies, advertisers, and other content creators to make engaging, rewarding experiences for fans all over the world.  For more information, visit www.versussystems.com or the official Versus Systems YouTube channel.

Investor Contact:
Cody Slach and Jackie Keshner
Gateway Group, Inc.
949-574-3860
IR@versussystems.com
or
press@versussystems.com

Disclaimer for Forward-Looking Information 
This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward looking statements. These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable law.

FAQ

What is the Nasdaq ticker symbol for Versus Systems Inc.?

The Nasdaq ticker symbol for Versus Systems Inc. is 'VS'.

What was the compliance issue that Versus Systems Inc. faced with Nasdaq?

Versus Systems Inc. was not in compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) as its common shares failed to meet a closing bid price of $1.00 or more for 30 consecutive business days.

What action did Versus Systems Inc. take to address the compliance issue?

Versus Systems Inc. conducted a 1-for-16 reverse split of its common shares on December 28, 2023 to aid the compliance process.

When did Versus Systems Inc. regain compliance with the Nasdaq Listing Rule 5550(a)(2)?

Versus Systems Inc. regained compliance with the Nasdaq Listing Rule 5550(a)(2) on January 12, 2024, after maintaining a minimum closing bid price of $1.00 or more for at least 10 consecutive business days.