Brera Holdings fails to meet Nasdaq annual meeting rule

DUBLIN - Brera Holdings PLC (NASDAQ:BREA), an international holding company currently valued at $8.27 million, has been notified by the Nasdaq that it has not complied with the annual meeting requirement for the fiscal year ended December 31, 2023. According to InvestingPro analysis, the company’s overall financial health score is rated as "WEAK," with particular concerns about liquidity. The Nasdaq Listing Rule 5620(a) mandates that listed companies must hold an annual shareholder meeting within twelve months following the end of their fiscal year.

On February 3, 2025, the company received formal notice of this non-compliance. Brera Holdings has until March 20, 2025, to submit a plan to regain compliance, as per Nasdaq Listing Rule 5810(c)(2)(G). The Nasdaq may grant an extension up to June 30, 2025, for the company to meet the requirements. The company’s current ratio of 0.34 indicates significant challenges in meeting short-term obligations.

In response, Brera Holdings has stated its intention to hold its overdue annual shareholder meeting within March 2025. This meeting is crucial for the company to align with Nasdaq’s regulations and avoid potential delisting or further sanctions.

Brera Holdings has been actively expanding its portfolio in the sports industry, particularly in football and women’s volleyball. Notable achievements include the acquisition of Brera FC, the establishment of Brera Tchumene FC in Mozambique, and investments in teams such as Manchester United (NYSE:MANU) PLC and UYBA Volley. The company also recently initiated a majority ownership acquisition process of the Italian Serie B football club SS Juve Stabia. Despite impressive revenue growth, InvestingPro data reveals the company is rapidly burning through cash, with negative free cash flow of $4.13 million in the last twelve months. Get access to 10+ additional ProTips and comprehensive financial analysis with InvestingPro.

The company’s forward-looking statements in the press release indicate plans for growth and development in the sports sector. However, these statements are subject to various risks, including the company’s ongoing ability to operate, team performance, and general economic conditions. The stock has declined over 36% in the past year, and current InvestingPro Fair Value analysis suggests the stock is undervalued, though investors should note the company’s negative EBITDA of $6.87 million.

This news is based on a press release statement from Brera Holdings PLC.

In other recent news, Brera Holdings PLC disclosed its unaudited consolidated financial statements for the first half of the fiscal year ending June 30, 2024. This report, filed with the United States Securities and Exchange Commission, provides a comprehensive look at the company’s financial performance during this six-month period. The Dublin-based company also released its interim financial statements and an operational review, which are included in the filing.

Brera Holdings, listed on the SEC under file number 001-41606, confirmed its commitment to adhere to the SEC’s reporting standards for foreign private issuers. The company, which underwent a name change in 2022, continues to operate from its Dublin location.

The latest Form 6-K submission by Brera Holdings PLC, signed by CEO Pierre Galoppi, is part of the company’s regular compliance with SEC regulations. These recent developments reflect the company’s commitment to transparency in its financial and operational status.

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