NEW YORK - Horizon Space Acquisition I Corp., a company specializing in blank check offerings, has been notified by The Nasdaq Stock Market LLC of its non-compliance with a key listing rule, potentially impacting its presence on the Nasdaq Global Market. The notice, dated today, indicates that Horizon does not meet the minimum requirement of 400 shareholders for continued listing.
The warning letter from Nasdaq, however, does not immediately affect the trading of Horizon's securities, which include units, ordinary shares, redeemable warrants, and rights, all currently listed on the Nasdaq Global Market under the symbols HSPOU, HSPO, HSPOW, and HSPOR respectively.
Horizon, which has its principal executive offices in New York, has been given 45 days, until November 19, 2024, to submit a plan to regain compliance. If Nasdaq approves this plan, the company could receive an extension of up to 180 days from today's date to meet the listing rule.
In response to the deficiency notice, Horizon has already applied to transfer its listing to the Nasdaq Capital Market, which has less stringent shareholder requirements. This application is under review by Nasdaq.
The development comes as Horizon operates as an emerging growth company, a category that allows for more lenient reporting standards under federal securities laws. Despite the setback, Horizon's executive team, led by CEO Mingyu (Michael) Li, is taking steps to address the compliance issue.
In other recent news, Horizon Space Acquisition I Corp. has announced a series of extensions to the deadline for completing its initial business combination. The company now has until October 27, 2024, to finalize its merger. The extension was made possible by a series of $60,000 deposits into the company's trust account by Shenzhen Squirrel Enlivened Media Group Co. Ltd. These payments are part of an agreement related to a planned business combination with Squirrel Enlivened Technology Co., Ltd and its subsidiaries.
In exchange for each extension payment, Horizon Space Acquisition I Corp. issued unsecured promissory notes to Shenzhen Squirrel for the same amount. These notes carry no interest and are set to be paid in full either when the business combination is completed or by the end of the company's term. The extensions give Horizon Space Acquisition I Corp. and its associated entities additional time to satisfy closing conditions and complete the proposed merger.
InvestingPro Insights
As Horizon Space Acquisition I Corp. (HSPOU) navigates its Nasdaq listing challenges, InvestingPro data provides additional context to the company's financial position. With a market capitalization of $87.78 million, HSPOU is trading at a high earnings multiple, with a P/E ratio of 74.13. This valuation metric aligns with one of the InvestingPro Tips, which notes that the stock is "Trading at a high earnings multiple."
Despite the listing concerns, HSPOU's stock is performing relatively well in the short term. The company's share price is currently at 91.96% of its 52-week high, with a 4.37% total return over the past three months. This resilience is reflected in another InvestingPro Tip, which indicates that the stock "generally trades with low price volatility."
Investors should note that while HSPOU has been profitable over the last twelve months, with a basic EPS of $0.33, it does not pay a dividend to shareholders. This information, combined with the company's current challenges, suggests a complex investment landscape for HSPOU.
For a more comprehensive analysis, InvestingPro offers 6 additional tips for HSPOU, providing deeper insights into the company's financial health and market position.
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