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SALT LAKE CITY – TruGolf Holdings, Inc. (NASDAQ: TRUG), a prominent player in golf technology with a current market capitalization of $10.36 million, has recently shared its strategy to comply with Nasdaq’s listing requirements following shareholder queries. The company, which had fallen short of the Nasdaq’s minimum stockholders’ equity standard, presented its compliance plan to the Nasdaq Hearings panel on May 15, 2025, and is currently awaiting a decision. According to InvestingPro data, the stock has experienced significant volatility, with its price declining by nearly 80% over the past year.
In August 2024, TruGolf was notified by Nasdaq that its stockholders’ equity had dipped below the required $10 million threshold. To rectify this, the company has proposed several measures including the conversion of a significant portion of dividends owed to founders into common stock, and the exchange of outstanding PIPE notes and warrants for new preferred shares. While the company holds more cash than debt on its balance sheet, InvestingPro analysis indicates the company has been quickly burning through its cash reserves.
Additionally, TruGolf has secured an Equity Line of Credit worth $20 million, which is intended to provide liquidity without impacting shareholder equity. A potential reverse stock split is also on the table, pending board approval and shareholder authorization, to meet Nasdaq’s minimum pricing rules.
CEO Chris Jones clarified that the Equity Line of Credit is a precautionary measure, allowing the company to capitalize on future opportunities without incurring debt. TruGolf’s financial standing remains robust, with over $10 million in cash reserves, which Jones affirms is sufficient for current operational needs. However, financial metrics from InvestingPro show concerning trends, with the company’s overall financial health score rated as WEAK and negative EBITDA of -$2.01 million in the last twelve months.
The company is set to hold a special shareholders’ meeting on May 30th to vote on the proposed compliance plan. TruGolf continues to innovate in the golf industry, leveraging AI and other technologies to make the sport more accessible and enjoyable.
This news article is based on a press release statement from TruGolf Holdings, Inc. and contains forward-looking statements subject to risks and uncertainties. The acceptance of TruGolf’s compliance plan by Nasdaq and its future cash needs are among the topics discussed. The company does not commit to updating any forward-looking statements post-publication. Further information on risks is available in the company’s SEC filings. Subscribers to InvestingPro can access 12 additional exclusive insights about TruGolf’s financial health, valuation metrics, and growth prospects to make more informed investment decisions.
In other recent news, TruGolf Holdings, Inc. has entered into a $20 million Equity Purchase Facility Agreement with an institutional investor, enabling the company to sell its Class A common stock to raise capital, pending stockholder approval. Additionally, TruGolf Holdings has announced a strategic financial restructuring, converting outstanding convertible notes into Series A Preferred Stock, potentially yielding $15.1 million in gross proceeds if the new warrants are exercised. This restructuring aims to eliminate $9.3 million in debt and aligns with NASDAQ’s listing requirements. The company also disclosed the signing of Exchange Agreements to convert senior convertible notes and warrants into Series A preferred stock, streamlining its financial obligations. Facing a Nasdaq delisting threat for not meeting the $10 million stockholders’ equity requirement, TruGolf plans to appeal, temporarily halting the delisting process. Meanwhile, TruGolf Links Franchising, LLC, a subsidiary of TruGolf Holdings, has partnered with John Young to establish 40 new indoor golf centers in Tennessee. This expansion reflects TruGolf’s commitment to broadening its reach and enhancing accessibility to golf through technology.
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