Momentus Inc (NASDAQ:MNTS)., a company specializing in space vehicles and parts, has been notified of a delisting determination by The Nasdaq Capital Market due to non-compliance with the minimum bid price requirement and periodic reporting requirement.
The delisting determination letter, received on September 24, 2024, follows the company's failure to maintain a minimum bid price of $1.00 per share and to file its Form 10-Q for the periods ending March 31, 2024, and June 30, 2024.
The company, which is listed under the ticker MNTS for its Class A common stock and MNTSW for its warrants, did not regain compliance by the deadline of September 23, 2024. The company's stockholders' equity also did not meet the minimum initial listing requirement of $5,000,000 for Nasdaq, which eliminated the possibility of a second 180-day extension to address the bid price deficiency.
In response to the delisting notice, Momentus intends to request a hearing before a Nasdaq Hearing Panel to appeal the delisting decision. The company plans to present a compliance plan, which may include a reverse stock split subject to board and stockholder approval. The appeal is expected to stay the suspension of trading and delisting of the common stock until the Panel's decision.
Additionally, Momentus has reached a proposed settlement for certain shareholder derivative litigation, which is subject to a settlement hearing scheduled for November 21, 2024. The preliminary approval of the settlement was filed on August 26, 2024, and preliminarily approved by the U.S. District Court for the Northern District of California on September 16, 2024.
The outcome of the appeal and the ability of Momentus to regain compliance with Nasdaq's listing requirements are uncertain. The company's securities continue to be registered under the Securities Exchange Act of 1934, and Momentus remains committed to addressing the compliance issues. This news is based on a press release statement.
InvestingPro Insights
As Momentus Inc. navigates through compliance challenges, real-time data from InvestingPro provides a snapshot of the company's financial health. With a market capitalization of just $8.12 million and a staggering revenue growth of over 933% in the last twelve months as of Q4 2023, the company's financial situation is complex. Despite the impressive gross profit margin of 72.32%, the company's operating income margin at -2206.93% underscores the significant financial strain it is under, as reflected in the adjusted P/E ratio of -0.13.
InvestingPro Tips suggest that Momentus operates with a substantial debt burden and may struggle to make interest payments, which is particularly relevant given the Nasdaq's delisting determination based on financial non-compliance. Analysts do not anticipate the company will be profitable this year, a factor that could influence the Nasdaq Hearing Panel's decision regarding the company's appeal. For a more comprehensive analysis and additional tips, Momentus investors and interested parties can find 17 more InvestingPro Tips at: https://www.investing.com/pro/MNTS.
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