SRM Entertainment gets Nasdaq compliance extension

Published 24/04/2025, 12:38
SRM Entertainment gets Nasdaq compliance extension

WINTER PARK, FL - SRM Entertainment, Inc. (NASDAQ:SRM), a designer and manufacturer of custom merchandise for major theme parks and entertainment venues, has been granted an additional 180 days to comply with Nasdaq’s minimum bid price rule. The Nasdaq Staff’s notice, dated April 24, 2025, allows SRM Entertainment until October 20, 2025, to maintain a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days. The stock, currently trading at $0.46, has shown significant momentum with a nearly 40% gain over the past week, according to InvestingPro data.

The company currently meets all other initial listing standards on the Nasdaq Capital Market, except for the bid price. SRM Entertainment’s stock will continue to be traded under the ticker symbol "SRM" during this period. While InvestingPro data shows the company maintains a healthy current ratio of 3.41 and holds more cash than debt on its balance sheet, revenue declined by 25% in the last twelve months. CEO Rich Miller expressed confidence in the company’s strategic direction, which focuses on expanding innovative product lines and distribution channels to drive revenue growth.

SRM Entertainment is known for its creative products based on multi-billion-dollar entertainment franchises featured in movies and books. Their merchandise is distributed worldwide, including at Walt Disney Parks and Resorts, Universal Parks and Destinations, and other major attractions. The company’s design team has also created specialty items for New York City landmarks and holds exclusive patents for its Sip With Me cups.

The announcement includes forward-looking statements regarding the company’s future performance. While SRM Entertainment believes these projections are reasonable, it acknowledges that actual results may differ and advises investors to review the risk factors in the company’s SEC filings. With the next earnings report scheduled for May 13, 2025, InvestingPro subscribers can access 12 additional key insights about SRM’s financial health and market position. SRM Entertainment does not commit to publicly updating any forward-looking statements, except as required by law.

This news is based on a press release statement and aims to provide investors with the latest information on SRM Entertainment’s compliance status with Nasdaq listing requirements.

In other recent news, SRM Entertainment, Inc. has finalized a new employment agreement with its Chief Financial Officer, Douglas McKinnon. The agreement, effective January 1, 2024, outlines a three-year term with automatic one-year renewals. Mr. McKinnon’s annual base salary is set at $215,000 and will increase by at least ten percent each year. He is also eligible for an annual cash bonus, which can be paid in cash or common stock. Additionally, the agreement includes the issuance of restricted shares equivalent to his base salary, contingent on meeting management’s goals. If SRM Entertainment’s market capitalization surpasses $50 million, Mr. McKinnon stands to receive additional equity incentives valued at $250,000. These terms aim to align the CFO’s interests with the company’s performance and growth objectives. This information was disclosed in a recent SEC filing.

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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