NetCapital, an online capital formation platform transitioning “from a transaction-based capital formation marketplace into a comprehensive, data-driven capital markets infrastructure platform,” is at risk of losing its Nasdaq listing.
According to a statement issued by Netcapital at the end of July, a pending rule for firms with a market value of listed securities (MVLS) below $5 million may be suspended or delisted.
Fortunately for the company, the Securities and Exchange Commission has decided to suspend the rule for further review.
As it stands today, NetCapital has a market cap of around $3.28 million and a share price of around $0.42.
Todd Violette, CEO of NetCapital, said the development gave shareholders clarity.
“We are continuing to make the changes we believe are necessary to transform this business, strengthening our capital structure, pursuing our strategic realignment, and building toward durable compliance with Nasdaq’s listing standards from a position of fundamental strength rather than short-term necessity. Our turnaround plan is moving forward.”
While NetCapital indicates a pivot, its online capital formation business, including a Funding Portal, appears to continue operating.
