Bullish indicating open at $55-$60, IPO prices at $37
NEW YORK - Metal Sky Star Acquisition Corporation (NASDAQ:MSSA), a special purpose acquisition company (SPAC), is facing potential delisting from the Nasdaq Capital Market due to non-compliance with filing requirements, the company disclosed Tuesday. The Nasdaq notification indicated that Metal Sky Star did not complete a business combination within the mandated 36-month period following its initial public offering (IPO), as required by Nasdaq rules.
The company also failed to submit its quarterly report for the period ending March 31, 2024, and its annual report for the year ended December 31, 2023, on time. These delays serve as additional grounds for potential delisting. Metal Sky Star's securities, encompassing units, ordinary shares, warrants, and rights, are at risk of suspension starting August 16, 2024, unless the company successfully appeals before the Nasdaq Hearings Panel.
Metal Sky Star has until August 14, 2024, to request a hearing to appeal the delisting notice. If the company requests a hearing, it may also seek a stay of the suspension until the hearing's conclusion. The Nasdaq panel will then decide on the request for an extended stay within 15 calendar days following the hearing request deadline.
Formed under the laws of the Cayman Islands, Metal Sky Star Acquisition Corporation was established to undertake a merger, share exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.
InvestingPro Insights
As Metal Sky Star Acquisition Corporation (NASDAQ:MSSA) grapples with the possibility of being delisted from the Nasdaq, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, MSSA has a market capitalization of $72.4 million and is trading near its 52-week high, with a price percentage of the 52-week high at 98.26%. This proximity to the peak suggests that the market has held a relatively positive view of the stock over the past year.
InvestingPro Tips indicate that MSSA is currently in overbought territory based on the Relative Strength Index (RSI), which may signal caution for investors considering the stock's recent performance. Additionally, the stock has been noted to trade with low price volatility, providing some stability in terms of price swings. This could be a critical factor for investors looking for less turbulent assets amidst the company's current regulatory challenges.
Despite the concerns over the Nasdaq listing, the company has been profitable over the last twelve months, with basic and diluted EPS (Earnings Per Share) from continuing operations standing at $0.24. This profitability, as reflected in the earnings, may offer some reassurance to stakeholders regarding the company's financial viability in the short term. However, it is essential to note that MSSA does not pay dividends to shareholders, which might influence the investment decisions for those seeking regular income from their investments.
For investors seeking deeper insights, InvestingPro offers additional tips on MSSA, which can be accessed by visiting the dedicated page for Metal Sky Star Acquisition Corporation. These tips can provide further guidance and a more comprehensive understanding of the company's financial position and stock performance.
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