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KORE receives NYSE compliance plan approval

Published 12/24/2024, 06:06 AM
KORE
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The acceptance of KORE's compliance plan by the NYSE does not guarantee future performance or continued listing, as these forward-looking statements are subject to various risks and uncertainties. The statements in the press release are made as of its date and may change in the future. KORE has stated that it has no obligation to update these statements in the event of new information or future developments.

The company's common stock is expected to remain listed on the NYSE during this period, provided KORE adheres to the plan and meets other applicable listing standards. The stock has experienced significant volatility, with InvestingPro showing a 72.86% decline year-to-date, though maintaining a current ratio of 1.3, indicating sufficient liquid assets to meet short-term obligations. KORE's business operations and reporting obligations to the U.S. Securities and Exchange Commission remain unaffected by this notification.

KORE's plan, which was accepted by the NYSE, includes measures based on previously announced operational restructuring and provides an outlook for the company's business. InvestingPro analysis reveals a concerning financial health score labeled as 'Weak', with analysts not anticipating profitability this year. Get access to 14+ additional exclusive ProTips and comprehensive financial analysis through InvestingPro's detailed research reports. The company is required to submit quarterly updates to the NYSE detailing its progress in achieving the plan's goals and initiatives.

The acceptance of KORE's compliance plan by the NYSE does not guarantee future performance or continued listing, as these forward-looking statements are subject to various risks and uncertainties. The statements in the press release are made as of its date and may change in the future. KORE has stated that it has no obligation to update these statements in the event of new information or future developments.

This news is based on a press release statement from KORE Group Holdings, Inc.

In other recent news, KORE Group Holdings Inc. has seen a flurry of activity. TD Cowen has raised its price target for the company to $2.50, up from the previous $2.00, while maintaining a Hold rating on the stock. This adjustment reflects an improved forecast for KORE's EBITDA in the fiscal year 2025, suggesting a potential strengthening of the company's long-term financial health.

Simultaneously, KORE Group has been grappling with a notice of non-compliance from the New York Stock Exchange (NYSE) due to not meeting the required market capitalization and stockholders' equity standards. In response, the company plans to submit a detailed plan within the next 45 days to regain compliance with the listing standards.

On another note, TD Cowen downgraded KORE's stock rating from "Buy" to "Hold," mainly due to concerns over revenue growth challenges and significant internal restructuring. This restructuring includes a 25% workforce reduction and major changes in executive leadership.

In the midst of these changes, KORE Group revised its 2024 financial guidance. Despite a 16% growth in IoT connectivity revenue, the company reported a substantial net loss of $64.3 million for the recent quarter. The updated 2024 guidance anticipates revenue of $275 million to $285 million and adjusted EBITDA of $54 million to $56 million. These are the recent developments in KORE Group's ongoing efforts to enhance its financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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