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Damon Inc., a manufacturer of motorcycles and bicycle parts, is currently facing delisting from the Nasdaq Global Market after its common shares fell below the minimum bid price requirement. According to InvestingPro data, the stock has plummeted 99.5% over the past year to $0.01, with average daily trading volume of 95.46 million shares. On Monday, April 4, 2025, the company received a notice from Nasdaq staff indicating that its shares had closed at $0.10 or less for ten consecutive trading days, which is in violation of Nasdaq's Listing Rule 5810(c)(3)(A)(iii).
The Vancouver-based company, formerly known as Grafiti Holding Inc., has until 4:00 p.m. Eastern Time on April 11, 2025, to request a hearing to appeal the delisting determination. InvestingPro analysis reveals concerning financial health metrics, with a weak current ratio of 0.09 and a high debt-to-capital ratio of 0.75, suggesting significant financial challenges. Damon Inc. intends to submit a plan to regain compliance with Nasdaq's listing standards, including a transfer application to the Nasdaq Capital Market and a potential reverse stock split, as per British Columbia law and the company's Articles which allow the board to effect such a consolidation without shareholder approval.
In a related matter, Damon Inc. has released all remaining shares subject to a 180-day lock-up restriction imposed following a business combination in November 2024. This release totals 6,723,713 shares, although current directors and officers are still under lock-up restrictions for 60 days post the closing of a registered underwritten offering completed on March 21, 2025.
As of the close of market on April 8, 2025, following the issuance of common shares pursuant to warrant exercises, Damon Inc. reported having 786,963,093 common shares issued and outstanding.
The company's forward-looking statements indicate its intention to appeal the Staff's decision and to achieve compliance with Nasdaq's continued listing standards. However, there are several factors, including the company's ability to meet these standards and obtain approval for a transfer to The Nasdaq Capital Market, that could affect the outcome.
This news is based on a press release statement and reflects the current situation facing Damon Inc. as it navigates the challenges of maintaining its listing status on a major stock exchange. InvestingPro subscribers have access to 13 additional key insights about Damon Inc., including detailed financial health scores and valuation metrics that could be crucial for investors monitoring this developing situation.
In other recent news, Damon Inc. has been actively addressing several key developments. The company has amended a secured promissory note with Streeterville Capital, LLC, introducing a conversion feature that allows Streeterville to convert the note's outstanding balance into common shares of Damon Inc. Additionally, Damon Inc. has issued 1,255,230 common shares to settle an installment owed to a former financial adviser. These financial activities are detailed in the company's latest 8-K filing with the Securities and Exchange Commission. In compliance matters, Damon Inc. has received a warning from The Nasdaq Stock Market LLC regarding potential delisting due to its share price falling below the required $1.00 minimum. The company has until July 21, 2025, to address this issue and regain compliance. Furthermore, Damon Inc. has been notified of a non-compliance issue related to its Market Value of Listed Securities (MVLS), which has fallen below the $50 million threshold. The company has until July 7, 2025, to rectify this situation. Damon Inc. is exploring various options to address these compliance challenges, including the possibility of a reverse stock split or transferring its listing to The Nasdaq Capital Market.
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