REHOVOT - SatixFy Communications Ltd., an Israeli satellite technology company, is currently grappling with the threat of being delisted from the NYSE American exchange after its market valuation dipped below the critical threshold of $50 million. The company, which specializes in manufacturing satellite payloads, user terminals, and modems, has seen its stock plummet more than 94% since its October 2022 merger with Endurance Acquisition Corp., a special purpose acquisition company (SPAC).
The steep decline in share value has prompted the New York Stock Exchange to notify SatixFy of its non-compliance with stockholder equity criteria on Friday, December 1. In response, SatixFy plans to submit a compliance plan by the end of December, outlining strategies to boost business growth and capitalize on technological advancements in an effort to recover its financial standing.
Despite current challenges, including internal chipset innovation delays and a shake-up in executive leadership following the CEO's passing, SatixFy reported a significant revenue increase over the past nine months. The company's revenues rose by 31% to $8.9 million and included a strategic sale of its digital payload division to MDA for $60 million, which also covered prepaid chip orders.
SatixFy's difficulties reflect broader industry trends where aerospace companies such as Terran Orbital and Astra are experiencing volatility due to shifting market sentiments. However, with operations spanning the U.K., U.S., and Bulgaria, SatixFy is now focusing on acquiring new clients and leveraging tech advances as part of its recovery plan. The company's efforts to stabilize its financial trajectory highlight the dynamic nature of the aerospace sector and the critical importance of innovation and strategic pivots in maintaining market presence.
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