Nauticus Robotics faces Nasdaq delisting over price, value shortfall
WEBSTER, TX – Nauticus Robotics, Inc. is confronting the possibility of delisting from The Nasdaq Capital Market following its failure to meet Nasdaq’s minimum bid price and market value of listed securities requirements. The robotics company, headquartered in Webster, Texas, disclosed this development in a recent SEC filing.
According to the filing, Nauticus Robotics received a deficiency notice from Nasdaq on January 26, 2024, for not maintaining the minimum bid price of $1.00 over 30 consecutive trading days as stipulated by Nasdaq Listing Rule 5550(a)(2). The company was given until July 22, 2024, to rectify the situation but was unable to do so within the allotted timeframe.
In addition to the bid price issue, Nauticus Robotics was notified on February 22, 2024, of another deficiency concerning its failure to comply with the minimum market value of listed securities (MVLS) requirement of $35 million over a 30-day period, as required by Nasdaq Listing Rule 5550(b)(2).
On July 24, 2024, the company received a staff determination letter from Nasdaq indicating that it had not regained compliance and is not eligible for a second 180-day compliance period due to the concurrent MVLS requirement non-compliance.
In response to these challenges, Nauticus Robotics has initiated a 1-for-36 reverse stock split on July 22, 2024, and intends to request a hearing before a Nasdaq Hearings Panel by July 31, 2024, to prevent the suspension and delisting of its securities. The company is hopeful that the reverse stock split will allow its common stock’s bid price to exceed the $1.00 minimum threshold for at least ten consecutive trading days, potentially satisfying the bid price requirement before the hearing date.
The filing emphasizes that while the hearing request will delay any suspension or delisting actions, there is no guarantee that the panel will grant an additional compliance period, or that the company will be able to demonstrate compliance with Nasdaq’s requirements for continued listing.
In other recent news, Nauticus Robotics reported significant developments. The company’s Q1 2024 profit was $7.4 million, a remarkable improvement from past losses, largely due to aggressive cost-cutting measures and a boost in cash balance to $6.2 million. The company’s primary focus is on the Aquanaut ToolKITT product as a key revenue driver.
At a recent special meeting of stockholders, several key proposals were approved, including the issuance of shares upon the conversion of debt under various agreements and warrants to purchase shares of the company’s common stock. A proposal authorizing a reverse stock split received the necessary majority, potentially increasing the market price of the common stock. However, a proposal to increase the authorized shares of the company’s common stock did not reach the required majority and was not approved.
The company also announced a partnership with Florida Atlantic University, aiming to reduce costs and nurture a fresh talent pipeline. These recent developments are part of Nauticus Robotics’ ongoing efforts to manage its capital structure and secure the financial flexibility necessary for future growth.
Despite a decrease in revenue compared to the previous year, the company’s recent profit and increased cash balance, coupled with ongoing efforts to preserve cash, reduce costs, and improve efficiencies, suggest a positive trajectory.
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