Stryve Foods to be delisted from Nasdaq

PLANO, TX – Stryve Foods, Inc., a food and kindred products manufacturer with concerning financial health indicators according to InvestingPro analysis, is set to be delisted from the Nasdaq Stock Market, with trading of its Class A common stock and warrants to be suspended starting Thursday, the company disclosed in a recent SEC filing. The company’s current market capitalization stands at just $1.98 million, with a weak financial health score of 1.27 out of 5. The delisting notice, issued by Nasdaq on Monday, follows Stryve Foods’ failure to meet the minimum stockholders’ equity requirement of $2.5 million as stipulated by Nasdaq’s Listing Rule 5550(b)(1).

Despite being granted an extension until January 31, 2025, Stryve Foods was unable to regain compliance with the continued listing rules. The company’s request for a further extension was denied, leading to the decision by the Nasdaq Hearings Panel to proceed with delisting. InvestingPro data reveals concerning metrics, including a current ratio of 0.38, indicating the company’s short-term obligations exceed its liquid assets, while operating with a significant debt burden of $28.11 million.

Stryve Foods has the option to request a review of this decision by the Nasdaq Listing and Hearing Review Council within 15 days of receiving the notice. The Council also has the authority to initiate a review within 45 calendar days of the decision. In the meantime, Stryve Foods’ securities are expected to start trading on the OTC Markets under the same trading symbols.

The impending delisting is a significant event for the Delaware-incorporated company, which was formerly known as Andina Acquisition Corp (NYSE:TGLS). III before its name change in December 2016. As per the SEC filing, the formal delisting process will culminate with Nasdaq filing a Form 25 Notification of Delisting with the Securities and Exchange Commission after the appeal periods have concluded.

Investors and stakeholders of Stryve Foods are now faced with the reality of the company’s securities moving from a major exchange to the less regulated over-the-counter market. The stock has experienced significant pressure, falling over 50% in the past six months, with the current price of $0.51 trading near its 52-week low. The company’s business address is listed in Frisco, TX, with its principal executive offices located in Plano, TX. For deeper insights into Stryve Foods’ financial situation and access to comprehensive analysis, investors can explore the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

This news comes directly from a recent SEC filing by Stryve Foods, Inc., providing investors with the latest developments regarding the company’s stock market presence.

In other recent news, Stryve Foods, Inc. has made significant financial maneuvers to manage debt and equity. The company issued a new series of convertible preferred stock and extended the maturity of a related party promissory note, raising $9.4 million. The preferred stock is convertible into Class A common stock and ranks above common stock for dividends and asset distribution. These are part of the company’s ongoing financial structuring efforts.

In addition, shareholders of Stryve Foods recently approved amendments to existing warrants, allowing the company to proceed with the issuance of shares. This move aligns with the company’s continuous efforts to align its financial strategies with shareholder interests and market opportunities. The company also adjourned a Special Meeting of Stockholders to secure more votes on two critical proposals, which are crucial for the company’s access to additional financing.

Furthermore, Stryve Foods received an extension from the Nasdaq Hearings Panel to meet the exchange’s minimum stockholders’ equity requirement. The company also faced a potential delisting from Nasdaq due to its share price falling below the required minimum, but has been granted a 180-day period to regain compliance. These recent developments reflect the company’s ongoing efforts to meet financial thresholds and ensure investor confidence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.