NEW YORK - Hudson (NYSE:HUD) Acquisition I Corp. (NASDAQ:HUDA), a special purpose acquisition company (SPAC), is facing potential delisting from the Nasdaq Global Market after failing to meet several of the exchange's continued listing requirements. The company was notified of its noncompliance on Sunday and has until July 30, 2024, to appeal the decision.
The delisting notice cites multiple deficiencies, including a market value of listed securities below the required $50 million for 30 consecutive trading days and having only approximately 105,000 publicly held shares against the minimum requirement of 1.1 million. Additionally, Hudson Acquisition's market value of publicly held shares stands at about $1.3 million, significantly short of the $15 million minimum.
The SPAC has also breached Nasdaq's alternative listing criteria and the requirements for the Nasdaq Capital Market. Further complicating matters, Hudson Acquisition has not filed its annual report (Form 10-K) for the year ended December 31, 2023, and its quarterly report (Form 10-Q) for the period ended March 31, 2024, in a timely manner.
In response to the delisting notice, Hudson Acquisition has filed the overdue Form 10-K and anticipates submitting the Form 10-Q within the next ten business days. The company has also applied to transfer to the Nasdaq Capital Market and requested a hearing with a Nasdaq Hearings Panel, scheduled for August 22, 2024. If the appeal is unsuccessful and Hudson Acquisition is delisted, it could still potentially secure an initial listing for a combined entity on the Nasdaq Stock Market post-merger.
Hudson Acquisition I Corp. was established as a blank check company with the intent to merge with or acquire a business entity. It has specifically excluded any initial business combination with entities audited by firms that cannot be inspected by the United States Public Company Accounting Oversight Board.
This article is based on a press release statement. Hudson Acquisition I Corp. is actively seeking to address the issues raised by Nasdaq and is working on a comprehensive plan to regain compliance and maintain its listing on the exchange.
InvestingPro Insights
As Hudson Acquisition I Corp. (NASDAQ:HUDA) grapples with the prospect of delisting from the Nasdaq Global Market, a glance at the company's financial health through InvestingPro data and metrics provides investors with a deeper understanding of its current position. Notably, HUDA's market capitalization stands adjusted at a modest $27.39 million USD, reflecting the scale of the company in the financial markets.
Despite the challenges it faces, HUDA's P/E ratio, as of the last twelve months ending Q4 2023, suggests an optimistic outlook on earnings growth, with a figure of 225.99. This is considerably lower than the current P/E ratio of 713.92, indicating potential for near-term earnings improvement. However, the company's PEG ratio of 0.86 for the same period signals that investors may expect reasonable future earnings growth relative to the P/E ratio.
InvestingPro Tips highlight that HUDA is trading at a high earnings multiple and experiences high price volatility, which could be of interest to investors seeking speculative opportunities. Additionally, HUDA's status as profitable over the last twelve months could be a silver lining for the company amidst its compliance struggles. With six more InvestingPro Tips available for HUDA, including insights on its gross profit margins and short-term obligations, investors can gain a comprehensive understanding of the company's financial nuances. For access to these valuable insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Understanding the financial metrics and strategic moves of Hudson Acquisition I Corp. is crucial for investors monitoring the company's efforts to maintain its listing and navigate through its current challenges. The InvestingPro platform can serve as a valuable resource in this regard, providing real-time data and expert analysis.
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