Arogo Capital Acquisition Corp. Announces Receipt of and Appeals Nasdaq Delisting Determination

Rhea-AI Summary

Arogo Capital Acquisition Corp. (Nasdaq: AOGO/AOGOU/AOGOW) has received a delisting notice from Nasdaq on July 31, 2024. The company failed to comply with two listing requirements: maintaining a Market Value of Listed Securities of at least $50 million and having at least 400 total holders. Arogo has until August 7, 2024, to appeal the decision. The company has submitted a timely appeal and requested a hearing before the Nasdaq Hearing Panel, along with a $20,000 fee. This action automatically stays the suspension of Arogo's securities pending the hearing. However, there is no guarantee that Arogo will receive a favorable decision or maintain its Nasdaq listing.

Positive

• Arogo has successfully filed an appeal and requested a hearing, temporarily staying the suspension of its securities
• The company acted promptly to address the delisting notice, demonstrating proactive management

Negative

• Failure to maintain the required $50 million Market Value of Listed Securities
• Non-compliance with the 400 total holders requirement
• Risk of potential delisting from Nasdaq Global Market
• $20,000 fee paid for the appeal process
• Uncertainty regarding the outcome of the appeal and future Nasdaq listing status

Insights

Legal Expert

Arogo Capital Acquisition Corp.'s receipt of a delisting notice from Nasdaq is a significant development with potential far-reaching consequences. The company's failure to maintain a $50 million market value and have at least 400 total holders violates important Nasdaq listing requirements. While Arogo has appealed the decision, the outcome remains uncertain.

The appeal process buys Arogo some time, but the company faces an uphill battle. To regain compliance, they would need to significantly increase their market value and expand their shareholder base rapidly. This is challenging for a SPAC that hasn't completed a business combination. If delisted, Arogo would likely move to the OTC markets, resulting in reduced liquidity, lower trading volumes and potentially decreased investor interest.

Investors should closely monitor this situation, as a delisting could trigger clauses in Arogo's agreements, potentially forcing the SPAC to liquidate if unable to complete a merger within its specified timeframe. This underscores the importance of due diligence when investing in SPACs, particularly those struggling to meet listing requirements or find suitable acquisition targets.

Financial Analyst

The potential delisting of Arogo Capital Acquisition Corp. from Nasdaq is a red flag for investors. The company's market value falling below $50 million and having fewer than 400 shareholders indicates a lack of market interest and liquidity. This situation is particularly concerning for a SPAC, as it may hinder its ability to attract a suitable merger target.

If delisted, Arogo faces several financial challenges:

• Reduced access to capital markets
• Potential breach of agreements with current investors
• Increased difficulty in completing a business combination

The $20,000 appeal fee and the stay of suspension provide a temporary reprieve, but Arogo needs a substantial turnaround to regain compliance. Investors should be cautious, as the risk of capital loss is significant if the SPAC is forced to liquidate without completing a merger. This case highlights the importance of scrutinizing a SPAC's financial health and market reception before investing.

MIAMI BEACH, FL, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Arogo Capital Acquisition Corp. (“Arogo” or the “Company”) (Nasdaq: AOGO/AOGOU/AOGOW), a special purpose acquisition company, today announced that it received a notice (the “Notice”) from the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”) on July 31, 2024, notifying the Company has not regained compliance with Nasdaq Listing Rule 5450(b)(2)(A), requiring the Company to maintain a Market Value of Listed Securities of at least $50 million, and cited the Company’s failure to comply with Nasdaq’s Listing Rule 5450(a)(2), which requires the Company to have at least 400 total holders, as additional basis for delisting the Company’s securities from Nasdaq. The Notice provides that the Company has until 4:00 p.m. Eastern Time on August 7, 2024 (the “Appeal Deadline”), to appeal the Listing Qualification Department’s determination.

Pursuant to the Notice, unless the Company timely requests a hearing from the Nasdaq Hearing Panel (the “Panel”), the Company’s securities will be subject to suspension and delisting from the Nasdaq Global Market at the opening of business on August 7, 2024 and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company’s securities from listing on Nasdaq. The Company paid the required $20,000 fee and on August 6, 2024, submitted its timely request for a hearing before the Panel to appeal the Listing Qualification Department’s determination, as well as a request to stay the suspension of its securities pending the hearing date, under the procedures set forth in the Nasdaq Listing Rule 5800 Series. The appeal and request for hearing were filed before the Appeal Deadline, and accordingly the Company expects that the suspension of the Company’s securities will automatically be stayed until the Panel makes a determination. No assurances can be provided that the Company will obtain a favorable decision from the Panel, and/or that the Company will be able to regain or maintain compliance with the Nasdaq listing rules and continue the listing of its securities on Nasdaq.

About Arogo Capital Acquisition Corp.

Arogo Capital Acquisition Corp. is a blank check company. The Company aims to acquire one and more businesses and assets, via a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization. For more information, visit www.arogocapital.com.

Forward-Looking Statements

This Press Release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include those that express a belief, expectation or intention, as well as those that are not statements of historical fact. Forward-looking statements include information regarding our future plans and goals, as well as our expectations with respect to, without limitation: our ability to consummate the proposed business combination; availability and terms of capital; our ability to regain compliance with Nasdaq’s listing requirements; and our success in appealing any delisting determination.

Forward-looking statements may be accompanied by words such as “outlook,” “aim,” “anticipate,” “assume,” “believe,” “budget,” “contemplate,” “continue,” “could,” “due,” “estimate,” “expect,” “future,” “goal,” “intend,” “may,” “objective,” “plan,” “predict,” “potential,” “positioned,” “pursue,” “seek,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements are not assurances of future performance and involve risks, uncertainties and assumptions which may cause actual results to differ materially from any results expressed or implied by any forward-looking statement, including, but not limited to, the Company’s ability to regain compliance with the Nasdaq listing requirements; and the other important factors outlined under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as such factors may be updated from time to time in the Company’s other filings with the SEC, which are available on the SEC’s website at www.sec.gov. Although the Company believes that the expectations and assumptions reflected in its forward-looking statements are reasonable, it cannot guarantee future results. These forward-looking statements speak only as of the date they were made and, except as otherwise required by law, the Company undertakes no obligation to update, amend or ratify any forward-looking statements because of new information, future events or other factors.

Contact

Suradech Taweesaengsakulthai
Chief Executive Officer
suradech@cho.co.th
(786) 442-1482

FAQ

Why is Arogo Capital Acquisition Corp. (AOGOU) facing delisting from Nasdaq?

Arogo Capital Acquisition Corp. is facing delisting because it failed to maintain a Market Value of Listed Securities of at least $50 million and does not have at least 400 total holders, as required by Nasdaq listing rules.

What steps has Arogo Capital Acquisition Corp. (AOGOU) taken to address the delisting notice?

Arogo has submitted an appeal and requested a hearing before the Nasdaq Hearing Panel, along with paying a $20,000 fee. This action has temporarily stayed the suspension of its securities pending the hearing.

When did Arogo Capital Acquisition Corp. (AOGOU) receive the delisting notice from Nasdaq?

Arogo Capital Acquisition Corp. received the delisting notice from Nasdaq on July 31, 2024.

What is the deadline for Arogo Capital Acquisition Corp. (AOGOU) to appeal the Nasdaq delisting decision?

The deadline for Arogo Capital Acquisition Corp. to appeal the Nasdaq delisting decision is 4:00 p.m. Eastern Time on August 7, 2024.