Jet.AI Inc., an air transportation company formerly known as Oxbridge Acquisition Corp., has been notified by Nasdaq that it has not met the minimum bid price requirement, putting its listing at risk. As of October 18, 2024, the company's common stock had not maintained the minimum $1.00 per share bid price for 30 consecutive business days, as required by Nasdaq Listing Rule 5450(a)(1).
Despite the setback, the company remains optimistic about regaining compliance before the extended deadline of November 26, 2024. Jet.AI's board has been authorized by stockholders to implement a reverse stock split if necessary, which could help raise the per-share trading price. Additionally, the company has recently closed offerings of its common stock on October 11 and October 21, 2024, as part of its strategy to meet Nasdaq's continued listing criteria.
The notification from Nasdaq does not immediately affect the trading of Jet.AI's shares on The Nasdaq Capital Market. However, the company must now work diligently to increase its share price to meet the exchange's standards or face the possibility of delisting.
The company's efforts to address the issue include a plan approved at the September 24, 2024 annual meeting, where shareholders gave the green light for a reverse stock split at the board's discretion. This measure, along with the recent capital raises, forms part of Jet.AI's comprehensive strategy to rectify the non-compliance issue.
Jet.AI's management has expressed confidence in their ability to meet the Minimum Bid Price Requirement and maintain compliance with Nasdaq's listing criteria. However, there is no guarantee that the company will successfully achieve this goal within the given timeframe or maintain its compliance thereafter.
In other recent news, Jet.AI Inc. has been actively making strides in its corporate and financial strategies. The Delaware-based non-scheduled air transportation company has entered into a significant agreement with Ionic Ventures, adjusting the terms of Series B Convertible Preferred Stock held by the latter. Jet.AI also announced a direct stock offering, planning to sell around 15.6 million shares, projected to yield approximately $1.5 million in gross proceeds. Additionally, the company has secured $2.4 million through another stock sale, selling approximately 26.6 million shares of common stock.
Jet.AI has also agreed to modify the Conversion Measurement Period for the first 200 shares of Series B Convertible Preferred Stock that Ionic Ventures will hold. The company is set to introduce enhancements to its AI-driven software products, CharterGPT and Reroute AI, at the upcoming 2024 NBAA Business Aviation Convention & Exhibition.
Jet.AI has also secured a $280 million debt financing arrangement for the acquisition of Bombardier (OTC:BDRBF) Challenger 3500 aircraft, with deliveries expected to commence in 2026.
InvestingPro Insights
The recent Nasdaq notification to Jet.AI Inc. regarding its minimum bid price requirement aligns with several key insights from InvestingPro. The company's stock is currently trading near its 52-week low, as highlighted by one of the InvestingPro Tips. This low share price is directly related to the compliance issue Jet.AI is facing with Nasdaq.
InvestingPro Data shows that Jet.AI's revenue for the last twelve months as of Q2 2024 was $14.48 million, with a concerning revenue growth of -22.94% over the same period. This negative growth trend may be contributing to investor sentiment and the stock's poor performance.
Additionally, the company's financial health appears to be strained, with an operating income margin of -94.71% for the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip indicating that the company suffers from weak gross profit margins.
For investors considering Jet.AI's potential recovery, it's worth noting that InvestingPro offers 5 additional tips that could provide further insights into the company's financial situation and prospects. These additional tips could be particularly valuable given the critical juncture at which Jet.AI finds itself.
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