Metal Sky Star Corp faces Nasdaq delisting over rule breach

EditorLina Guerrero
Published 16/07/2024, 22:10
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On July 12, 2024, Metal Sky Star Acquisition Corp, a company listed on the Nasdaq Global Market under the ticker MSSA, received a notice from Nasdaq's Listing Qualifications Department indicating non-compliance with the Minimum Public Holders Rule. This rule requires a minimum of 400 public holders for continued listing, which the company currently fails to meet.

The notice, while not an immediate threat to the company's listing, requires Metal Sky Star to submit a plan within 45 calendar days to regain compliance. If Nasdaq accepts the plan, the company may be granted an extension of up to 180 calendar days from the notice date to demonstrate compliance. Should the plan be rejected, Metal Sky Star will have the right to appeal before a Nasdaq Hearings Panel.

This development follows the company's transition from Metal Sky Acquisition Corp, a name change that occurred on September 10, 2021. Based in New York, Metal Sky Star operates in the real estate and construction sector and is classified under the industry code for blank checks.

The company's securities, including ordinary shares (MSSA), units (MSSAU), redeemable warrants (MSSAW), and rights (MSSAR), remain actively traded on the Nasdaq. Each redeemable warrant allows the holder to purchase one ordinary share at a price of $11.50 per share.

The company, led by CEO Olivia He, has publicly committed to addressing the issue and intends to submit a compliance plan promptly. This filing is based on the latest 8-K form submitted to the Securities and Exchange Commission, which provides the regulatory framework for such disclosures.

InvestingPro Insights

As Metal Sky Star Acquisition Corp navigates the challenges of Nasdaq compliance, investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Metal Sky Star has a market capitalization of $72.66 million and a P/E ratio of 45.1, which adjusts to 32.37 for the last twelve months as of Q3 2023. Despite the compliance issue, the company has been profitable over the last twelve months, with a basic and diluted EPS (Continuing Operations) of $0.24.

InvestingPro Tips suggest that Metal Sky Star's stock generally trades with low price volatility and is currently trading near its 52-week high, which is 94.42% of the peak price. Moreover, the company's liquid assets surpass its short-term obligations, indicating a degree of financial stability. However, investors should note that the company does not pay dividends, which might influence investment decisions depending on individual strategies.

For those seeking a deeper analysis, there are additional InvestingPro Tips available for Metal Sky Star at Investing.com. Utilize the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to exclusive insights that could further inform your investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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