TSX runs higher on rate cut expectations
TORONTO - Horizon Aircraft Ltd. (NASDAQ: HOVR), a $25 million market cap eVTOL aircraft developer, has announced its compliance with Nasdaq's Equity Standard, ensuring its continued listing on the Nasdaq Capital Market. Despite a 10% decline in the past week, according to InvestingPro data, the company also received an extension until July 14, 2025, to meet the Bid Price Rule.
The aerospace engineering firm, which specializes in hybrid electric Vertical Take-Off and Landing (eVTOL) aircraft, stated that it had received a written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC. This notice confirmed that Horizon Aircraft had satisfied the Equity Standard in Listing Rule 5550(b)(1), which pertains to shareholders' equity requirements. InvestingPro analysis shows the company maintains a healthy current ratio of 2.76, with liquid assets exceeding short-term obligations.
In addition to maintaining its listing status, Horizon Aircraft has been granted an additional 180 days to comply with the Bid Price Rule, which requires the company's stock to maintain a minimum bid price. This extension provides the company with the opportunity to adjust its share price to meet Nasdaq's requirements.
Horizon Aircraft is developing what it describes as one of the world's first hybrid eVTOL aircraft. The company's design philosophy emphasizes mission capability, prioritizing safety, performance, and utility. The aim is to create an aircraft capable of performing missions akin to traditional aircraft but with the added benefits of industry-leading speed and range.
The press release also contained forward-looking statements regarding Horizon Aircraft's market competition, regulatory changes, capital requirements, and product development. These statements are subject to various risks and uncertainties, and actual results may differ materially from the projections.
Investors and interested parties are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Horizon Aircraft may update these statements in the future, but there is no obligation to do so unless required by law. Trading at a P/E ratio of 2.54, InvestingPro analysis suggests the stock is currently undervalued, with analysts projecting profitability this year. Discover 14 additional exclusive insights and detailed financial metrics with an InvestingPro subscription.
This news article is based on a press release statement from Horizon Aircraft Ltd. and is presented without any assumptions or speculative commentary.
In other recent news, New Horizon Aircraft Ltd. has made significant strides in its efforts to regain Nasdaq compliance. The company has been proactive in addressing compliance issues, as indicated by CEO E. Brandon Robinson in an SEC filing. The company has also undertaken the Canso Financing, a subscription agreement with investors, resulting in the sale of Class A ordinary shares and Series A preferred shares, yielding net proceeds of approximately USD $6.0 million.
New Horizon Aircraft Ltd. has also updated terms with key investors, introducing an Exchange Cap to prevent the conversion of Series A preferred shares into common shares exceeding the number allowed under Nasdaq rules. In addition, the company anticipates a gain of approximately $20-25 million from the termination of its forward purchase agreement with Meteora Capital Partners (WA:CPAP), LP.
The company has also appointed Tom Brassington, a veteran from eVTOL developer Lilium, as its new Chief Technology Officer. Furthermore, analyst firm EF Hutton has initiated coverage on New Horizon Aircraft with a Buy rating, indicating potential for revenue generation. These are some of the recent developments in New Horizon Aircraft Ltd.'s operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.