Cambium Networks risks Nasdaq delisting over share price

Published 14/04/2025, 21:14
Cambium Networks risks Nasdaq delisting over share price

Cambium Networks Corp (NASDAQ:CMBM), a manufacturer of radio and TV broadcasting and communications equipment, has received a notice from the Nasdaq Stock Market indicating a risk of delisting due to its share price falling below the required minimum. The company’s stock has experienced a dramatic 92% decline over the past year, currently trading at $0.4, significantly below its 52-week high of $4.43. According to InvestingPro data, the company’s market capitalization has shrunk to just $11.27 million. The notification, dated April 10, 2025, specifies that Cambium’s ordinary shares have closed below the $1.00 minimum bid price for the last 30 consecutive business days, not meeting the Nasdaq Global Select Market’s continued listing standards.

Under Nasdaq’s rules, Cambium has until October 7, 2025, to regain compliance. The company must maintain a closing bid price of at least $1.00 for a minimum of 10 consecutive business days before this deadline. If Cambium achieves this, it will continue its listing on the Nasdaq Global Select Market. InvestingPro analysis reveals concerning fundamentals, including significant debt burden and rapid cash burn, with an overall Financial Health score rated as ’Weak’.

Should Cambium fail to meet the requirements by the compliance date, it could be granted a second 180-day period to regain compliance, during which it would need to meet all initial listing standards for the Nasdaq Capital Market, except for the bid price. This might involve a potential reverse stock split to boost the share price above the $1.00 threshold.

In the event of non-compliance after the additional period, or if Nasdaq determines that compliance cannot be achieved, Cambium’s shares could be delisted. However, Cambium would have the right to appeal any delisting decision to a Nasdaq Hearings Panel.

The company has stated its intention to monitor the share price closely and explore options to address the deficiency. Despite the notice, Cambium’s ordinary shares will continue to trade on the Nasdaq under the ticker symbol "CMBM" for the time being. While currently trading below its Fair Value according to InvestingPro analysis, investors should note that the company faces significant challenges, including negative EBITDA of -$76.53 million in the last twelve months. For deeper insights into Cambium’s financial health and prospects, including 18 additional ProTips and comprehensive valuation metrics, explore the full Pro Research Report available on InvestingPro.

The information in this article is based on a press release statement from Cambium Networks Corporation and reflects the company’s current plans and expectations, which are subject to change based on various factors and risks.

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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