SCOTTSDALE, Ariz. - Adamas One Corp. (NASDAQ:JEWL), a manufacturer of lab-grown diamonds, announced today that it is facing delisting from the Nasdaq Stock Market due to noncompliance with the exchange's minimum bid price requirement. The company's stock has failed to maintain the necessary $1.00 minimum bid price over a 30-day period, as stipulated by Nasdaq Listing Rule 5550(a)(2).
The company was initially given a 180-day grace period, which ended on April 9, 2024, to meet the requirement. Despite efforts, Adamas One's shares did not achieve the minimum bid price for at least ten consecutive business days within this period. Further complicating the situation, the company also did not meet the $5 million minimum stockholders’ equity requirement for the period ending December 31, 2023.
Adamas One intends to request a hearing before an independent Nasdaq Hearings Panel to avoid suspension or delisting of its securities. This request will stay any delisting actions until the hearing and any potential extension period granted by the Panel, which could extend as late as October 8, 2024. At the hearing, the company plans to present a strategy to regain compliance.
There is no guarantee that the Panel will grant the extension or that Adamas One will ultimately meet the Nasdaq's listing criteria. The company specializes in high-quality, single-crystal lab-grown diamonds for jewelry and industrial applications and was recognized as the Best Lab-Grown Diamond Manufacturer for 2023.
Adamas One holds 36 patents and utilizes a proprietary chemical vapor deposition (CVD) process to produce diamonds that are equivalent in physical, chemical, and optical properties to mined diamonds. The company aims to sell its products in the wholesale jewelry and industrial markets.
InvestingPro Insights
Adamas One Corp. (NASDAQ:JEWL) is grappling with challenges beyond the Nasdaq's minimum bid price requirement. InvestingPro data reveals a market capitalization of only $10.21 million, reflecting the company's small size in a competitive industry. The company's price-to-book ratio as of the last twelve months ending Q3 2023 stands at 2.64, which suggests that investors are paying more than twice the net asset value for JEWL shares. This could be a concern for value-oriented investors, especially considering the company's revenue growth has been volatile, with a substantial quarterly drop of 52.85% in Q3 2023.
Adamas One's financial health is further highlighted by two significant InvestingPro Tips. The company is quickly burning through cash and its short-term obligations exceed its liquid assets. This indicates potential liquidity issues that could be problematic for the company's operations and financial stability. Additionally, the company has not been profitable over the last twelve months, which adds to the uncertainty about its future performance.
Investors interested in a deeper analysis of Adamas One Corp. can find additional insights on InvestingPro, including six more InvestingPro Tips that could provide a more comprehensive understanding of the company's financial situation and stock performance. To access these valuable insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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