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CHRISTIANSTED, U.S. Virgin Islands - Altisource Asset Management Corporation (NYSE American: AAMC), a provider of private credit and alternative asset management services, today announced its decision to voluntarily delist from the NYSE American exchange and deregister its common stock. The move comes after the company received notification of non-compliance with the exchange's continued listing standards due to its financial performance as of March 31, 2024, and historical losses.
Despite submitting a compliance plan, the company has opted for delisting and deregistration, citing cost savings and the inability to reap the benefits traditionally associated with public company status. The low liquidity of its securities and the associated challenges in capital raising, attracting institutional investors, and using stock as transaction consideration have been highlighted as key factors in this decision. The company anticipates that the move will allow management to better focus on business operations.
The formal notification to the NYSE American was made today, with a plan to file a Form 25 with the SEC on or about September 6, 2024, to initiate the delisting process. The company expects that trading of its common stock on the NYSE American will cease at market close around September 16, 2024. Following this, the company aims to file a Form 15 to deregister its common stock and suspend its reporting obligations, with the deregistration expected to become effective within 90 days post-filing.
AAMC specializes in originating alternative assets to provide liquidity and capital to under-served markets and has also ventured into developing and licensing technology to enhance the efficiency of electric vehicles. The company's forward-looking statements indicate plans for delisting and deregistration, but also acknowledge the risks and uncertainties inherent in such strategic moves.
This article is based on a press release statement from Altisource Asset Management Corporation.
In other recent news, Altisource Asset Management Corporation has made significant changes in its auditing services and faced a non-compliance notice from the NYSE American. The company decided to part ways with Ernst & Young LLP (EY) and appointed PKF O’Connor Davies, LLP (PKF) as its new auditor. This transition was steered by budgetary considerations and the firm's compatibility with the company's size relative to PKF's other clients.
Altisource has also been notified by the NYSE American of its non-compliance with the exchange's continued listing standards, related to stockholders' equity levels and losses over the past five fiscal years. The company is required to submit a compliance plan by June 30, 2024, detailing steps to regain compliance by December 1, 2024.
In terms of product development, Altisource is making significant strides in the commercialization of its Alpha Control System. Developed in partnership with UK-based Seabird Limited, the system is expected to significantly boost in-city driving range by 16-24% for delivery trucks. These are the recent developments within the company.
InvestingPro Insights
As Altisource Asset Management Corporation (AAMC) prepares to delist and deregister its common stock, a closer look at recent financial data and performance metrics can provide investors with a clearer picture of the company's current position. According to InvestingPro data, AAMC's revenue has seen a significant decline over the last twelve months as of Q2 2024, with a decrease of 107.17%. This substantial drop in revenue is echoed in the quarterly figures, which show a decrease of 97.81% in Q2 2024. Additionally, the company's gross profit margin stands at an unusually high 536.68%, a figure that may require further analysis to understand its context within the company's financial structure.
InvestingPro Tips highlight several key points for investors to consider. AAMC's stock has been characterized by high price volatility, which could be a concern for risk-averse investors. Furthermore, the company has been operating with a moderate level of debt and has not paid dividends to shareholders. Over the last six months, the stock has taken a significant hit, with a price total return of -42.34%. This trend is consistent with the company's performance over the past year, with a price total return of -53.07%.
These insights, derived from real-time data and expert analysis available on InvestingPro, suggest that investors who are considering their positions in AAMC should weigh the potential risks and opportunities carefully. For those looking for more in-depth analysis, there are additional InvestingPro Tips available on the platform, which can further guide investment decisions.
For investors seeking to understand the broader financial landscape of AAMC and similar companies, InvestingPro offers a comprehensive set of tools and data points. The platform provides access to a wealth of information that can help in making informed investment choices.
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