Atlantic Coastal Acquisition Corp. II (NASDAQ:ACAB), a biotech firm, is on the brink of delisting from the Nasdaq Stock Market after failing to meet several listing requirements. The company, which specializes in biological products, has not maintained the minimum market value of publicly held shares nor the required number of unrestricted round lot holders, as per Nasdaq's standards.
On Monday, Atlantic Coastal disclosed that it had received a delisting determination letter from Nasdaq on October 16, 2024, because it did not regain compliance by the end of its grace period on October 15, 2024. The company also failed to meet the minimum number of publicly held shares as of September 10, 2024. Unless Atlantic Coastal requests a hearing before Nasdaq's Hearing Panel by October 23, 2024, its securities will be suspended from trading.
The company plans to request a hearing to stay the suspension and believes it will regain compliance following the completion of its proposed business combination with Abpro Corporation. This merger is expected to address the compliance issues.
Additionally, Atlantic Coastal has extended the deadline to complete its business combination from October 19, 2024, to November 19, 2024. The company's Registration Statement on Form S-4 regarding the business combination became effective on October 18, 2024.
In other recent news, Atlantic Coastal Acquisition Corp. II has been actively engaged in significant developments. The special purpose acquisition company has extended its deadline to finalize a business combination from September 19, 2024, to October 19, 2024.
This extension allows Atlantic Coastal additional time to complete a merger or similar business combination. The company has also amended its business combination agreement with Abpro Corporation, resulting in the issuance of 600,601 shares of Series A common stock to its sponsor, Atlantic Coastal Management II LLC.
Further, Atlantic Coastal has entered into key agreements with Abpro Bio International Inc. and Celltrion, Inc., which are aimed at a planned business combination with Abpro Corporation. As part of these agreements, Abpro Bio will purchase 622,467 shares of Atlantic Coastal's Series A common stock, while Celltrion has agreed to buy 500,000 shares of the same stock.
However, the company has received a notice from the Nasdaq Stock Market for non-compliance with the exchange's continued listing standards, specifically failing to maintain the minimum requirement of 400 holders of record and/or beneficial owners for its primary equity securities. Atlantic Coastal now has a 45-day window to submit a plan to regain compliance.
InvestingPro Insights
Atlantic Coastal Acquisition Corp. II's financial health appears to be in a precarious position, aligning with its struggle to meet Nasdaq listing requirements. According to InvestingPro data, the company's market capitalization stands at a modest $90.66 million, reflecting its small-cap status. This relatively low market value could be contributing to its difficulty in maintaining the minimum market value of publicly held shares required by Nasdaq.
InvestingPro Tips highlight that Atlantic Coastal is not profitable over the last twelve months, which is evident in its negative P/E ratio of -72.11. This lack of profitability underscores the company's financial challenges and may be a factor in its potential delisting. Additionally, the company's short-term obligations exceed its liquid assets, which could pose liquidity risks as it navigates this critical period.
The company's next earnings date is set for November 22, 2024, which could be a pivotal moment for Atlantic Coastal as it seeks to complete its business combination with Abpro Corporation and address its compliance issues. Investors looking for more comprehensive analysis can find 4 additional InvestingPro Tips for Atlantic Coastal Acquisition Corp. II, offering deeper insights into the company's financial situation and prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.