Damon Inc. faces potential Nasdaq delisting over share price

Damon Inc., a computer programming services firm previously known as Grafiti Holding Inc., has received a warning from The Nasdaq Stock Market LLC regarding a potential delisting due to its share price falling below the required minimum.

The company's stock, currently trading at $0.61, has experienced a dramatic 71% decline over the past six months, according to InvestingPro data. The Vancouver-based company, which is listed under the ticker DMN on The Nasdaq Global Market, was notified on January 22, 2025, that its common shares had not maintained the minimum closing bid price of $1.00 per share over the preceding 30 business days, as stipulated by Nasdaq's Listing Rule 5450(a)(1).

Despite the notice, Damon Inc.'s shares continue to be traded on The Nasdaq Global Market. The company has been granted a 180-day period, ending on July 21, 2025, to regain compliance with the bid price rule. If within this timeframe, Damon Inc.'s share price closes at or above $1.00 for at least 10 consecutive business days, the company will be considered in compliance with Nasdaq's requirements.

Should Damon Inc. fail to meet this criterion by the compliance deadline, it may be eligible for an additional 180-day grace period. To qualify, the company must meet all other initial listing standards for The Nasdaq Capital Market, except for the bid price requirement, and it must notify Nasdaq of its intention to remedy the deficiency, potentially through a reverse stock split.

InvestingPro analysis reveals concerning fundamentals, with the company showing weak financial health scores and operating with poor gross profit margins. Subscribers can access 5 additional key insights about Damon's financial position.

In the event that Damon Inc. is unable to regain compliance within the stipulated periods, Nasdaq will issue a delisting notice, which the company can appeal before a Hearings Panel. However, there is no guarantee that an appeal would be successful.

Damon Inc., with its current market capitalization of just $14.38 million, has expressed its intention to closely monitor its share price and explore all available options to address the non-compliance issue. This may include considering a reverse stock split or transferring its listing to The Nasdaq Capital Market, provided it meets the listing requirements for that exchange. The stock has shown significant volatility, trading between $0.51 and $4.95 over the past 52 weeks.

In other recent news, Damon Inc., a producer of high-tech electric motorcycles, has seen significant developments. The company received a non-compliance warning from Nasdaq due to its Market Value of Listed Securities falling below the required threshold. Damon Inc. has been given until July 7, 2025, to regain compliance, with potential actions including transferring its securities listing to The Nasdaq Capital Market.

Damon Inc. has secured a $10 million funding commitment from Streeterville Capital, LLC, expected to boost the company's working capital. The firm also formalized indemnification agreements with key executives and directors and implemented new compensation packages for its non-executive directors.

The company underwent an executive reshuffle, with Dominique Kwong stepping in as interim CEO and Shashi Tripathi taking the reins as Chairperson of the Board. Damon Inc. has accumulated over 3,000 refundable reservations for its electric motorcycles, potentially generating around $100 million in revenue.

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