Akoustis Technologies, Inc. (NASDAQ:AKTS), a manufacturer of telephone and telegraph apparatus with a market capitalization of just $5.89 million, will be delisted from the Nasdaq Capital Market due to non-compliance with minimum bid price requirements and its voluntary chapter 11 bankruptcy filing.
The delisting notice, issued today, follows previous warnings regarding the company's failure to maintain the required $1.00 minimum bid price per share, with the stock now trading at $0.04, down 95% year-to-date.
The Nasdaq Hearings Panel determined the delisting was warranted, also citing the bankruptcy filing as an additional ground for its decision. According to InvestingPro data, the company has been quickly burning through cash, with negative EBITDA of $39.31 million.
Akoustis has opted not to appeal the Panel's ruling. Trading of Akoustis's common stock will be suspended at market open on Wednesday, December 18, 2024. The company anticipates that Nasdaq will file a Form 25-NSE with the SEC to formally remove its stock from listing and registration.
Investors are advised to exercise caution when trading Akoustis securities during the ongoing bankruptcy proceedings, as trading is considered highly speculative and involves significant risk. InvestingPro analysis reveals a weak overall financial health score of 0.93, with significant debt burden of $49.13 million.
Market prices may not accurately reflect potential recovery values for the security holders in the bankruptcy process. Current expectations suggest that holders of common stock and other equity securities are unlikely to receive any distribution in the bankruptcy cases due to the proceeds from asset sales and the debts owed to senior creditors.
The company is based in Huntersville, North Carolina, and had been listed under the Delaware state of incorporation. For deeper insights into similar companies' financial health and potential risks, investors can access comprehensive Pro Research Reports for over 1,400 US stocks through InvestingPro.
In other recent news, Akoustis Technologies faces significant developments. The company reported a 7% increase in Q3 FY2024 revenues, amounting to $7.5 million, and secured multiple orders for its high-band RF filters, including a $13 million order for XBAW® filters for Wi-Fi Access Points.
However, the company has been grappling with a legal setback, having been found liable for trade secret misappropriation and patent infringement. This resulted in damages awarded to rival Qorvo Inc (NASDAQ:QRVO). totaling approximately $38.6 million, plus an additional $11.7 million in attorneys' fees.
Akoustis Technologies is also facing the risk of delisting from the Nasdaq Capital Market due to non-compliance with the minimum stockholders' equity requirement.
However, the company has received an extension from the Nasdaq Hearings Panel to continue its listing, contingent on demonstrating compliance by specific deadlines. The company has proposed a reverse stock split, pending stockholder approval, and launched a direct stock offering of 50 million shares, managed by Roth Capital Partners (WA:CPAP).
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