Arogo Capital Acquisition Corp. Receives Nasdaq Notification Regarding Minimum Market Value Deficiency
Arogo Capital Acquisition Corp. received a notice from Nasdaq stating it is not compliant with the minimum Market Value of Listed Securities requirement. The company has a compliance period until July 8, 2024, to regain compliance.
The notice received by Arogo Capital Acquisition Corp. from Nasdaq regarding non-compliance with the MVLS requirement is a critical financial development. The MVLS is a benchmark for assessing the financial health and market confidence in a publicly traded company. Falling below this threshold can trigger investor concerns about the company's valuation and future prospects. In Arogo's case, the redemption of shares by a significant number of shareholders could be indicative of waning investor confidence, possibly due to perceived risks or dissatisfaction with the company's strategic direction as suggested by the 'Extension Amendment Proposal' and 'Trust Agreement Proposal'.
From a financial perspective, the company's ability to regain compliance by increasing its market value above US$50,000,000 for at least ten consecutive business days is crucial. Failure to do so could result in delisting, which typically leads to lower liquidity and investor interest, potentially impacting share price negatively. The company's consideration to transfer to the Nasdaq Capital Market, typically home to smaller, less-capitalized companies, may reflect a strategic pivot or acknowledgment of its current market position.
The SPAC (Special Purpose Acquisition Company) sector has been volatile, with many such entities facing scrutiny over their performance and the underlying value they bring to investors. Arogo's current predicament highlights broader market trends where SPACs may struggle to meet investor expectations post-merger or when seeking additional funding or extensions. Market sentiment around SPACs can be influenced by a variety of factors, including the success of proposed business combinations and the general economic climate.
For stakeholders, the short-term implications involve monitoring Arogo's strategic moves to regain compliance, which may include asset divestitures, cost-cutting measures, or seeking additional capital. Long-term implications could revolve around the company's ability to execute its business model and deliver value, particularly if it transitions to a different Nasdaq market tier with possibly lower visibility and investor scrutiny.
03/11/2024 - 05:41 PM
MIAMI BEACH, FL, March 11, 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 January 10, 2024, indicating that the Company is currently not in compliance with the minimum Market Value of Listed Securities (“MVLS”) set forth in the Nasdaq Rules for continued listing on the Nasdaq Global Market. Nasdaq Listing Rule 5450(b)(2)(A) requires companies to maintain a minimum market value of US$50,000,000 and Listing Rule 5810(c)(3)(C) provides that a failure to meet the market value requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the market value of the Company for 38 consecutive business days from November 13, 2023, to January 9, 2024, the Company no longer meets the minimum market value requirement. This notification does not impact the listing and trading of the Company’s securities at this time.
To provide context regarding the change of the Company’s market value, as previously disclosed in our current report on Form 8-K filed on September 28, 2023, the Company held a Special Meeting of shareholders to address significant proposals, including the "Extension Amendment Proposal," and the "Trust Agreement Proposal.” In connection with the votes to approve the proposals above, the holders of 3,298,311 shares of common stock of the Company properly exercised their right to redeem their shares.
Pursuant to Nasdaq Listing Rule 5810(c)(3)(C), the Company has a compliance period of 180 calendar days (or until July 8, 2024) to regain compliance. If at any time during this compliance period the Company’s MVLS closes at US$50,000,000 or more for a minimum of ten consecutive business days, Nasdaq will notify the Company that it has achieved compliance with the MVLS requirement and this matter will be closed.
In the event the Company does not regain compliance with Rule 5450(b)(2)(A) prior to the expiration of the compliance period, it will receive written notification that its securities are subject to delisting. Alternatively, the Company may consider applying to transfer its securities to the Nasdaq Capital Market.
The Company intends to regain compliance with Nasdaq listing rules and will evaluate its available options to regain compliance with Nasdaq's minimum MVLS rule within the compliance period.
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 statements that constitute “forward-looking statements,” including with respect to the Company’s initial public offering and search for an initial business combination. Forward-looking statements are statements that are not historical facts and are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and final prospectus for the Offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein, except as required by law.
Contact
Suradech Taweesaengsakulthai
What notice did Arogo Capital Acquisition Corp. receive from Nasdaq?
Arogo Capital Acquisition Corp. received a notice from Nasdaq indicating it is not compliant with the minimum Market Value of Listed Securities requirement.
What is the compliance period for Arogo Capital Acquisition Corp. to regain compliance?
Arogo Capital Acquisition Corp. has a compliance period until July 8, 2024, to regain compliance with Nasdaq's minimum Market Value of Listed Securities rule.
What will happen if Arogo Capital Acquisition Corp. does not regain compliance with Nasdaq's rules?
If Arogo Capital Acquisition Corp. does not regain compliance with Nasdaq's rules before the compliance period ends, it may receive written notification that its securities are subject to delisting.
