HENDERSON, Nev. - Movella Holdings Inc. (NASDAQ: MVLA), a provider of motion capture technology, will be delisting its common stock and warrants from the Nasdaq Global Market, the company announced today. The trading of Movella's securities is set to be suspended after the company files a Form 25 with the Securities and Exchange Commission (SEC) on April 1, 2024.
This suspension will lead to the last trading day for the securities on Nasdaq occurring around April 1, originally expected to be around April 11.
The securities will remain listed on Nasdaq until the Form 25 filing takes effect, which is anticipated to be on or about April 11, after which they will be officially delisted. Post-delisting, Movella expects its securities to be quoted on an over-the-counter (OTC) market operated by OTC Markets Group Inc. starting April 12, to maintain a trading market for the securities.
Still, the company notes there is no assurance that trading will continue on an OTC market or otherwise.
Movella's Board of Directors concluded that attempting to regain compliance with Nasdaq's continued listing requirements was not in the best interest of the company or its shareholders. This decision was based on factors including Movella's likely future inability to meet these requirements and the significant operating expenses associated with Nasdaq's disclosure and reporting requirements.
The company plans to reallocate resources towards funding its operations more adequately in the future. Movella specializes in sensors, software, and AI analytics that convert movement data into animations and insights, serving various industries from entertainment to automotive.
This move follows a review by the Board of the costs and regulatory burdens associated with maintaining the listing on Nasdaq, considering the company's operational and financial priorities. Movella's management has expressed that the decision is aligned with the long-term strategy and operational needs of the company.
The information for this article is based on a press release statement issued by Movella Holdings Inc.
InvestingPro Insights
Movella Holdings Inc. (NASDAQ: MVLA), amidst the news of its delisting from the Nasdaq Global Market, presents a mixed financial picture according to InvestingPro data and insights. Here are some key metrics and tips that shed light on the company's current financial health:
InvestingPro Data:
- Market Cap (Adjusted): 4.79M USD
- Price / Book (last twelve months as of Q2 2023): 0.08
- Revenue Growth (last twelve months as of Q2 2023): 9.25 %
InvestingPro Tips:
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- MVLA is trading at a low Price / Book multiple, which could indicate that the company's market valuation is lower than its net asset value.
- Analysts have revised their earnings downwards for the upcoming period, reflecting potential concerns about the company's future profitability.
Movella's financials show a revenue growth over the last year, which may be a positive signal for investors looking at the company's operational performance. However, the downward earnings revisions by analysts and the low Price / Book multiple suggest that the market may have concerns about the company's valuation and its ability to maintain profitability.
For investors interested in a deeper analysis, there are an additional 19 InvestingPro Tips available for Movella Holdings Inc. These tips could provide further insights into the company's financial health and help in making more informed investment decisions. To access these tips and take advantage of the insights offered by InvestingPro, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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