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REGINA - Above Food Ingredients Inc. (NASDAQ:ABVE), a $87.5 million market cap company whose stock has surged over 260% in the past six months, has appointed CBIZ CPA as its independent auditor to complete its overdue annual report filing and regain Nasdaq compliance, the company announced Thursday based on a press release statement. According to InvestingPro data, the company faces significant operational challenges with negative EBITDA of -$29.2 million in the last twelve months.
The Regina-based ingredient company expects the audit to be completed within four to six weeks, well ahead of Nasdaq’s 180-day compliance timeline. The company selected CBIZ CPA for its expertise in asset tokenization and stablecoin markets, areas relevant to Above Food’s proposed merger with Palm Global Technologies Limited. InvestingPro analysis reveals concerning financial health indicators, including a current ratio of 0.23 and significant debt burden, factors that could impact the merger process.
According to the announcement, nearly 90% of Palm Global shareholders have already committed their support for the transaction. Palm Global Chairman Peter Knez issued a letter to shareholders highlighting the merger’s potential benefits, including access to food trade deals and participation in financial technology ventures.
Palm Global has a 30% stake in Palm Promax Investments, which is involved in tokenizing sovereign assets and developing a gold-backed stablecoin. The venture claims to have commitments from 15 African nations to adopt its stablecoin as official state currency.
The company also announced that Sheikh Mohammed Bin Maktoum Bin Juma Al Maktoum and Muayad Kafesha have agreed to join Above Food’s board following the merger completion.
Above Food stated that the auditor appointment is not expected to impact the timeline for the merger or the filing of registration statements with the Securities and Exchange Commission.
The proposed merger remains subject to regulatory approvals and other closing conditions. With total debt of nearly $97 million and negative gross profit margins, the company faces substantial financial challenges that could affect its merger timeline. Unlock deeper insights into ABVE’s financial health and growth prospects with InvestingPro, which offers 7 additional key investment tips for this volatile stock.
In other recent news, Above Food Ingredients Inc. has announced a significant reverse takeover merger with Palm Global Technologies Ltd., which is set to add a substantial share of Palm Promax Investments’ $350 billion valuation in U.S.-situated gold-based assets to its balance sheet. This merger, approved by both companies’ boards, marks a transformative step for Above Food. Additionally, the company has successfully regained compliance with NASDAQ listing requirements, meeting all necessary criteria, including the minimum market value of publicly held shares and the minimum bid price per share. The compliance was officially confirmed by NASDAQ, ensuring Above Food’s continued presence on the exchange. These developments come after a strategic restructuring period aimed at maximizing shareholder value. The merger and compliance achievements have sparked significant interest in Above Food, evidenced by a notable surge in its stock performance. Investors are closely watching these recent developments, which could have a lasting impact on the company’s financial and operational landscape.
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