DUET Acquisition Corp. faces Nasdaq delisting over holder shortfall

DUET Acquisition Corp., a special purpose acquisition company, has been notified by The Nasdaq Stock Market LLC that it is not in compliance with the Nasdaq's minimum public holders requirement. This development, which came to light on August 1, 2024, could potentially lead to the delisting of the company's securities from the Nasdaq Global Market.

The Nasdaq Listing Rule 5450(a)(2), also known as the Minimum Public Holders Rule, mandates that a company must have a minimum of 400 total holders for continued listing. DUET Acquisition Corp. is currently falling short of meeting this criterion. The company has been given 45 calendar days, until September 15, 2024, to submit a plan to regain compliance.

If the submitted plan is accepted by Nasdaq, the company could be granted an extension of up to 180 calendar days from the notice date to demonstrate compliance. In the event that the plan is not accepted, DUET Acquisition Corp. has the option to appeal before a Nasdaq Hearings Panel. It is important to note that the appeal process does not guarantee the successful maintenance of the company's listing.

In response to the notice, DUET Acquisition Corp. is considering monitoring its total holders and exploring available options to address the deficiency. One of the potential remedies could be transferring the listing of its securities to the Nasdaq Capital Market, provided the company meets the criteria for continued listing on that market.

The notice from Nasdaq does not currently affect the listing of DUET Acquisition Corp.'s securities, which includes its units (DUETU), Class A Common Stock (DUET), and Redeemable Warrants (DUETW). The company, based in Kuala Lumpur, Malaysia, has communicated its receipt of the notice in accordance with Nasdaq Listing Rule 5810(b).

Forward-looking statements in this report outline various potential outcomes, including the company's ability to appeal a delisting determination, resolve the public holders deficiency, and possibly transfer its securities listing. However, these statements are subject to numerous risks and uncertainties, and there is no assurance that the company will be able to regain or maintain compliance with the Nasdaq listing criteria.

InvestingPro Insights

As DUET Acquisition Corp. faces challenges with Nasdaq's compliance requirements, investors may find it pertinent to consider the company's financial health and market performance. According to InvestingPro data, DUET Acquisition Corp. has a market capitalization of approximately $39.88 million and is trading at a high earnings multiple with a P/E ratio of 595.8. Over the last twelve months, the company has been profitable, with a basic and diluted EPS from continuing operations at $0.02. Despite this profitability, the company does not pay a dividend to shareholders.

InvestingPro Tips reveal that the stock is currently in overbought territory as indicated by the RSI, and it trades with low price volatility. Additionally, the company's short-term obligations exceed its liquid assets, which could be a concern for liquidity management. On a positive note, DUETU is trading near its 52-week low, which may present a buying opportunity for some investors. For those interested in a deeper analysis, there are 5 additional InvestingPro Tips available on DUET Acquisition Corp. that could provide further insights into the company's performance and stock valuation.

It's important for investors to stay informed about the company's next steps as it works to address the Nasdaq's compliance concerns, and how these steps might impact its financial stability and stock performance. For more detailed analysis and tips, investors can visit InvestingPro.

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