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XBP Europe Holdings Inc. (NASDAQ:XBP), a business services provider, has been notified by the Nasdaq Stock Market LLC of its non-compliance with the minimum Market Value of Listed Securities (MVLS) requirement. The company's MVLS has been below the required $50 million threshold for the past 30 consecutive business days, as per Nasdaq Listing Rule 5450(b)(2)(A).
The notice, received on August 30, 2024, does not currently affect XBP's listing or trading on the Nasdaq Global Market (NGM). However, to maintain its listing, the company must elevate its MVLS to at least $50 million for a minimum of ten consecutive business days before February 26, 2025. If XBP fails to meet this compliance deadline, it risks having its securities delisted from the NGM.
In response to the notification, XBP submitted a formal application to transfer its listing from the NGM to the Nasdaq Capital Market (NCM) on September 4, 2024. The transfer is subject to the company meeting NCM's listing requirements. Additionally, XBP must resolve its previously reported non-compliance with the NGM's $15 million market value of publicly held shares standard by October 16, 2024.
This news is based on the latest 8-K filing by XBP Europe Holdings with the U.S. Securities and Exchange Commission.
InvestingPro Insights
As XBP Europe Holdings Inc. (NASDAQ:XBP) navigates its compliance challenges with Nasdaq's listing requirements, real-time data and insights from InvestingPro offer a deeper look into the company's financial health and market performance. Currently, XBP's market capitalization stands at a modest $36.8 million, reflecting the challenges it faces in maintaining the minimum MVLS threshold set by Nasdaq. The company's revenue has experienced a downturn, with a decline of nearly 6% over the last twelve months as of Q2 2024. This is compounded by a substantial quarterly revenue drop of 14.76% in Q2 2024. Additionally, XBP's gross profit margin during the same period is at 21.83%, which InvestingPro Tips highlight as a weak point for the company.
InvestingPro Tips also indicate that XBP has not been profitable over the last twelve months and is quickly burning through cash, with short-term obligations exceeding its liquid assets. This financial strain is reflected in the company's negative earnings per share (EPS) of $-0.56. In terms of market performance, the stock has suffered a significant decline, with a year-to-date price total return of -76.98% as of the latest data, and a price that is a mere 2.57% of its 52-week high. These metrics suggest that investors are facing high risk and volatility with XBP's stock.
For those considering XBP as an investment, it is crucial to note that the company does not pay dividends to shareholders, which may influence the overall attractiveness of the stock. Investors seeking additional insights and tips on XBP can find them on InvestingPro, where there are 11 more tips available to help make informed decisions.
The company's next earnings date is scheduled for November 12, 2024, which may provide further clarity on its financial trajectory and efforts to meet Nasdaq's listing standards. With an InvestingPro fair value estimation of $1.35, investors should continue to monitor XBP's progress and market signals closely.
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