DUET Acquisition Corp., a special purpose acquisition company (SPAC), is in the process of appealing a decision by The Nasdaq Stock Market LLC to delist its securities. The notice, received on Monday, October 18, 2024, cites non-compliance with Nasdaq's Minimum Public Holders Rule, which requires a minimum of 400 total holders for continued listing.
The company, which is incorporated in Delaware and headquartered in Miami, Florida, was initially warned about the non-compliance on August 6, 2024. DUET Acquisition Corp. submitted a plan to regain compliance but has not yet filed a registration statement for its proposed business combination with Fenix 360 Pte. Ltd. The Nasdaq Staff expressed doubts regarding the company's ability to complete the merger and meet the compliance requirements by the deadline, which is 36 months from the date of the company's IPO registration statement on Form S-1, due on January 19, 2025.
DUET Acquisition Corp. intends to request a hearing before a Nasdaq Hearings Panel, which will delay the delisting and termination of registration pending the Panel's decision. However, there is no guarantee that the Panel will rule in favor of the company's continued listing.
The company's securities, which include units (NASDAQ:DUETU), Class A common stock (NASDAQ:DUET), and redeemable warrants (NASDAQ:DUETW), each warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share, remain listed on Nasdaq for the time being. The outcome of the appeal and potential delisting could have significant implications for the company's future operations and stock market presence.
In other recent news, DUET Acquisition Corp. has made a series of significant moves. The company has extended its merger deadline twice, first to September 24, 2024, and then to October 24, 2024, depositing an additional $40,000 into its trust account each time. This action provides DUET Acquisition Corp. with extra time to finalize a merger or acquisition deal.
Simultaneously, the company is facing potential delisting from the Nasdaq Global Market due to non-compliance with the Nasdaq's minimum public holders requirement. DUET Acquisition Corp. has been given 45 days to present a plan to regain compliance, with a possible extension of up to 180 days if the plan is accepted. If not approved, the company has the option to appeal to a Nasdaq Hearings Panel.
As part of its strategy to address this issue, DUET Acquisition Corp. is considering various options, including potentially transferring its securities listing to the Nasdaq Capital Market. These are all recent developments that have been unfolding within the company's business operations.
InvestingPro Insights
As DUET Acquisition Corp. faces potential delisting from Nasdaq, InvestingPro data provides additional context to the company's current financial situation. The company's market capitalization stands at a modest $44.09 million, reflecting its status as a small-cap SPAC.
Interestingly, DUET is trading near its 52-week high, with its current price at 96.35% of its peak. This suggests that despite the delisting threat, investors remain somewhat optimistic about the company's prospects. The stock's previous closing price was $11.30, which is close to InvestingPro's fair value estimate of $12.28.
InvestingPro Tips highlight that DUET is trading at a high earnings multiple, with a P/E ratio of 180.6. This elevated valuation could be a concern for investors, especially given the uncertainty surrounding the company's listing status. On the other hand, another InvestingPro Tip notes that the stock generally trades with low price volatility, which might provide some stability during this challenging period.
For readers interested in a deeper analysis, InvestingPro offers 6 additional tips that could shed more light on DUET's financial health and market position. These insights could be particularly valuable as the company navigates its appeal process and potential business combination.
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