TruGolf Holdings faces Nasdaq delisting over equity shortfall

Published 04/04/2025, 22:14
TruGolf Holdings faces Nasdaq delisting over equity shortfall

TruGolf Holdings, Inc. (NASDAQ:TRUG), a manufacturer of sports equipment with a market capitalization of $7.09 million, is confronting the risk of delisting from the Nasdaq Stock Market for failing to meet the required stockholders’ equity threshold. The company, which reported negative EBITDA of $2.35 million in its last twelve months, was previously warned by Nasdaq that it did not comply with the minimum stockholders’ equity rule of $10 million, as stipulated by Listing Rule 5450(b)(1)(A).

Despite being given until March 31, 2025, to rectify the situation, TruGolf Holdings was unable to meet the requirement. The company’s challenges are reflected in its stock performance, with shares down 75% over the past year and trading near its 52-week low of $0.32. On Tuesday, April 2, 2025, the company received a formal notice from Nasdaq stating it had not regained compliance. As a result, Nasdaq has scheduled to delist the company’s securities on April 11, 2025, unless TruGolf Holdings appeals the decision. InvestingPro data reveals 12 additional key insights about the company’s financial health and market position.

The company has announced its intention to challenge the delisting by requesting a hearing before a Nasdaq Hearings Panel. This appeal will temporarily stay the delisting process and the filing of the Form 25-NSE, which is used to remove securities from listing and registration. Until the Panel reaches a decision, TruGolf Holdings’ Class A Common Stock will continue to trade on The Nasdaq Global Market under the ticker symbol "TRUG". According to InvestingPro, the company operates with a moderate level of debt and its current ratio of 0.89 indicates potential liquidity challenges.

This development comes after a previous notification from Nasdaq on October 2, 2024, regarding the company’s non-compliance with the equity rule. The company, formerly known as Deep Medicine Acquisition Corp. before a name change on April 14, 2021, is headquartered in Centerville, Utah and is incorporated in Delaware.

Investors are closely watching the situation as TruGolf Holdings navigates this regulatory challenge. The company’s CEO, Christopher Jones, signed off on the SEC filing dated today, April 4, 2025. The information in this article is based on the latest 8-K filing with the SEC by TruGolf Holdings, Inc.

In other recent news, TruGolf Holdings, Inc. has announced a significant expansion plan through its subsidiary, TruGolf Links Franchising, LLC. The company is partnering with Knoxville entrepreneur John Young to establish 40 new indoor golf centers across Tennessee, starting with a flagship location in Knoxville. These centers will feature advanced golf simulators and upscale amenities, underscoring TruGolf’s commitment to innovative and accessible golf experiences. In addition, TruGolf Holdings has secured an extension with its note holders to meet Nasdaq’s continued listing requirements. The company now has until February 28, 2025, to comply, with an additional extension to April 30, 2025, for the minimum bid price requirement. This extension is part of an agreement reached in November 2024, allowing TruGolf more time to address listing standards, including a potential reverse stock split. The company plans to convene a special shareholder meeting to vote on this strategy. These developments reflect TruGolf’s efforts to maintain its Nasdaq listing and expand its market presence.

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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