New Providence Acquisition Corp. II (NASDAQ:NPAB), a special purpose acquisition company, disclosed today that it has received a warning from Nasdaq for not meeting the minimum market value requirement. The Nasdaq notification, dated Monday, July 23, 2024, indicated that the company's Market Value of Listed Securities (MVLS) had fallen below the $50 million threshold required for continued listing on the Nasdaq Global Market.
The company, which is classified under the "blank checks" industry, has been given an initial period of 180 days, until January 17, 2025, to comply with the MVLS requirement. During this period, if New Providence's MVLS reaches or exceeds $50 million for at least 10 consecutive business days, Nasdaq will confirm that the company has regained compliance.
In response to the delisting notice, New Providence has undertaken a strategic move by converting an aggregate of 3,249,999 shares of its Class B common stock into Class A common stock. This conversion involved the company's sponsor, New Providence Acquisition II LLC, and several of the company's independent directors who were in office at the time of its initial public offering. The converted shares are subject to the same conditions as the Class B shares, including transfer restrictions and voting obligations in favor of a business combination.
Following this conversion, New Providence now has 6,932,523 shares of Class A common stock and one share of Class B common stock outstanding. The shares issued through this conversion were not registered under the Securities Act of 1933 and were issued in reliance on an exemption from registration.
The company's actions are part of its efforts to address the delisting risk and maintain its position on the Nasdaq Global Market. This information is based on a press release statement from New Providence.
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