ScanTech AI engages FSR Capital for Nasdaq compliance advisory

ATLANTA - ScanTech AI Systems Inc. (NASDAQ:STAI), a provider of AI-powered CT screening systems, announced Wednesday it has entered into a consultancy agreement with FSR Group Pte. Ltd. (FSR Capital) for specialized advisory services in capital markets, Nasdaq compliance, and SEC reporting. The announcement comes as the company’s stock trades near its 52-week low of $0.38, down 96.5% over the past year, according to InvestingPro data.

The agreement comes as ScanTech AI faces ongoing regulatory challenges. FSR Capital will provide guidance on issues including bid price deficiencies and filing delays, according to the company’s press release. The company’s financial health score stands at 0.3, rated as "Weak" by InvestingPro, with significant debt burden and rapid cash burn among key concerns.

"Our ScanTech AI leadership team is taking decisive action to help overcome regulatory challenges and position the Company for long-term success," said Dolan Falconer, Chief Executive Officer of ScanTech AI.

Calvin Ling, President of FSR Capital, stated that his team has experience in resolving Nasdaq compliance matters and optimizing investor relations for companies facing listing standards and capital market pressures.

ScanTech AI develops non-intrusive CT screening technologies that utilize artificial intelligence to detect hazardous materials and contraband. The company’s solutions are designed for security applications in airports, seaports, borders, and other facilities where security screening is required.

The company trades on the Nasdaq under the ticker STAI, with a current market capitalization of $20.41 million. The announcement did not disclose financial terms or the duration of the consultancy agreement. Get access to 16 additional key insights and detailed financial metrics with InvestingPro.

In other recent news, ScanTech AI Systems Inc. has announced several developments. The company reported a change in its board of directors, with Thomas McMillen resigning from his position. Michael McGarrity has been appointed as the new chair of the Nominating and Corporate Governance Committee, while Bradley Buswell has joined the Audit Committee. Additionally, ScanTech AI Systems has partnered with Curie Technologies to integrate Curie’s software platform into its SENTINEL CT screening systems, aiming to enhance service delivery and provide real-time digital access to essential information.

The company also revealed an AI-powered software upgrade for its SENTINEL CT systems, designed to improve checkpoint operations with real-time insights. However, ScanTech AI Systems has received a deficiency letter from Nasdaq, indicating non-compliance with the minimum market value requirement for publicly held shares. Despite this, the company secured access to government procurement channels through a TIPS contract with Creeksource Consulting LLC, allowing eligible entities to purchase its solutions via a national purchasing cooperative.

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