Damon Inc., a company specializing in computer programming services currently valued at $17.24 million, has been notified by The Nasdaq Stock Market LLC of a non-compliance issue regarding its Market Value of Listed Securities (MVLS).
According to InvestingPro data, the company's stock has declined by approximately 66% over the past six months, contributing to its market value challenges. The notice, received on Tuesday, indicated that Damon's MVLS had fallen below the $50 million threshold required for continued listing on The Nasdaq Global Market for 30 consecutive business days, from November 18, 2024, to January 6, 2025.
The company, trading under the symbol DMN on The Nasdaq Global Market at $0.77 per share, has been given 180 calendar days, until July 7, 2025, to regain compliance with the MVLS requirement. InvestingPro analysis indicates high price volatility, with the stock trading between $0.51 and $4.95 over the past 52 weeks. During this period, Damon Inc.'s securities will continue to be traded on The Nasdaq Global Market. To regain compliance, the company's MVLS must close at or above $50 million for at least 10 consecutive business days before the compliance deadline.
Should Damon Inc. fail to meet the MVLS requirement by July 7, 2025, Nasdaq will issue a delisting notice, which the company can appeal to a Hearings Panel. However, there is no guarantee that an appeal would be successful if necessary.
Damon Inc. is considering monitoring its MVLS and exploring options to address the deficiency and regain compliance. One of the potential actions might include applying to transfer its securities listing to The Nasdaq Capital Market, assuming it meets the criteria for that market.
This situation arises following the company's name change from Grafiti Holding Inc. to Damon Inc. on November 9, 2023. The British Columbia-based company has its principal executive offices located at 704 Alexander Street, Vancouver.
In other recent news, Damon Inc. has secured a $10 million funding commitment from Streeterville Capital, LLC, a significant financial agreement that involves issuing pre-paid purchases for its common shares. This move is expected to bolster the company's working capital and other corporate purposes. Simultaneously, Damon Inc. has implemented new compensation packages for its non-executive directors and formalized indemnification agreements with key executives and directors, reflecting a commitment to a robust management structure.
The company underwent an executive reshuffle, with Dominique Kwong stepping in as the interim CEO and Shashi Tripathi taking the reins as Chairperson of the Board. Damon Inc. has also seen progress on the production front, accumulating over 3,000 refundable reservations for its electric motorcycles, potentially generating around $100 million in revenue.
These developments come as Damon Inc. continues to navigate the competitive landscape of computer programming services. The company's strategic efforts, including a recent merger with Grafiti Holdings and subsequent Nasdaq listing, aim to secure the necessary capital for production. These are the recent developments in Damon Inc.'s journey towards the production of advanced electric motorcycles.
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