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LAS VEGAS, NV – Verb Technology Company, Inc. (NASDAQ:VERB), a provider of personal services, is facing potential delisting from the Nasdaq Stock Market as its share price has fallen below the minimum bid price requirement. On Monday, the company announced it received a notice from Nasdaq on August 6, 2024, citing non-compliance with the Bid Price Rule after the closing bid price of its common stock remained under $1.00 for 30 consecutive business days.
Verb Technology was initially provided until April 30, 2024, to meet the minimum bid price requirement but was later granted an additional 180-day grace period, extending the deadline to October 28, 2024. Despite the extension, the company's stock price continued to decline, closing below $0.10 per share for ten consecutive trading days ending August 5, 2024, which led to the Low Priced Stock Rule violation.
In response, Verb Technology has requested a hearing before the Nasdaq Hearings Panel to appeal the delisting decision, which automatically stays any delisting action until the hearing process is concluded. The company's stock will continue to be traded under the ticker symbol "VERB" during this period. However, there is no guarantee that the Panel will allow the company to maintain its listing or that Verb Technology will be able to meet Nasdaq's listing standards in any granted compliance period.
To address the bid price deficiency, Verb Technology has filed a preliminary proxy statement on August 2, 2024, and an amended proxy statement on August 6, 2024, proposing a reverse stock split. The company seeks stockholder approval at its annual meeting scheduled for September 26, 2024, to implement a reverse stock split ranging from one-for-five (1-for-5) to one-for-two hundred (1-for-200). If approved, the reverse stock split aims to elevate the company's share price above the Nasdaq's minimum requirement.
InvestingPro Insights
As Verb Technology Company, Inc. (VERB) faces the challenges of meeting Nasdaq's listing requirements, a closer look at real-time data from InvestingPro provides a snapshot of the company's financial health. With a market capitalization of just $10.93 million and a negative P/E ratio reflecting its lack of profitability, Verb's financial position is precarious. Despite a significant revenue growth of over 100% in the last twelve months as of Q1 2024, the company's operating income margin and return on assets are deeply negative, indicating substantial operational challenges.
An InvestingPro Tip notes that Verb holds more cash than debt on its balance sheet, providing a glimmer of hope for liquidity. However, the same tip set also indicates that the company is quickly burning through cash and analysts predict a sales decline in the current year. Moreover, Verb's stock price has experienced a sharp decline over the past year, with a one-year price total return of -92.99%, underscoring the urgency of the reverse stock split proposal to comply with Nasdaq's minimum bid price requirement.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/VERB, which could provide further insights into Verb Technology's financial trajectory and stock performance.
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