Analyst Summary
- Moolec Science SA received a Nasdaq Staff Determination Letter for not meeting the minimum bid price requirement of $1.00 per share.
- The company’s stock price remained below $1.00 for over 30 consecutive business days as of September 10, 2024, and failed to recover above $1.00 for more than 10 consecutive business days.
- Moolec is not eligible for a second 180-day compliance period due to not meeting the $5,000,000 minimum stockholders’ equity requirement.
- The company has appealed the determination and intends to present a plan to regain compliance by executing a reverse share split.
- The appeal stays any potential delisting and the filing of Form 25-NSE pending the Hearings Panel’s decision.
- The board of directors resolved to convene an extraordinary shareholders meeting to vote on the reverse share split.
- Moolec is committed to complying with Nasdaq Listing Rule 5550(a)(2) and is in close contact with Nasdaq staff.
Potential Implications
Stock Price
- The potential delisting could negatively impact the stock price if the company fails to regain compliance.
- The reverse share split, if approved and implemented, could temporarily increase the stock price.
- Uncertainty surrounding the Nasdaq compliance and potential delisting could lead to stock price volatility.