Netcapital Inc Stock Price, News & Analysis

Netcapital Inc. (NCPL) reported challenging Q1 fiscal 2025 results, with revenue decreasing 91% year-over-year to $142,227. The company's total funding portal revenues dropped 62% to $142,056. Netcapital faced an operating loss of ($2,508,237), up 235% from the previous year, and a net loss of ($2,527,170), a 414% increase. Loss per share rose 11% to ($5.10).

Despite financial setbacks, CEO Martin Kay highlighted strategic moves, including Netcapital Securities Inc.'s application for broker-dealer registration with FINRA and the beta launch of a secondary trading platform through Templum ATS. These initiatives aim to expand revenue opportunities and enhance investor liquidity, subject to regulatory approvals.

Netcapital Inc. (Nasdaq: NCPL, NCPLW), a digital private capital markets ecosystem, has announced its participation in the H.C. Wainwright 26th Annual Global Investment Conference. The event will take place from September 9-11, 2024, in New York, NY, with both in-person and virtual components.

CEO Martin Kay will deliver a virtual presentation on September 9th at 7:00 A.M. ET. The presentation will focus on Netcapital's mission to democratize private capital markets and provide public access to private investment opportunities. Interested parties can access the presentation via webcast and register for the conference on the event website. One-on-one meeting requests are also available upon registration.

Netcapital Inc. (Nasdaq: NCPL, NCPLW) has announced a 1-for-70 reverse stock split of its common stock, effective after market close on August 1, 2024. The primary goal is to increase the per share market price to regain compliance with Nasdaq's minimum $1.00 per share bid price requirement. Trading on a split-adjusted basis will begin on August 2, 2024, under the existing ticker symbol 'NCPL'. The reverse split will reduce the number of outstanding shares from approximately 40.54 million to 0.58 million. Adjustments will be made to equity awards, warrants, and shares issuable under equity incentive plans. No fractional shares will be issued, and shareholders entitled to fractional shares will receive one whole share instead.

Netcapital Inc. (NCPL) reported its full fiscal year 2024 financial results, showing mixed performance. While overall revenues decreased by 42% to $4.9 million, portal fees surged by 109% to $874,368. The company faced challenges, reporting an operating loss of $3,442,388 and a net loss of $4,986,317, compared to profits in the previous year. Loss per share was $0.41, down from earnings of $0.63 in fiscal 2023. Netcapital also recorded an impairment loss of $1,048,430. Despite these setbacks, CEO Martin Kay expressed optimism about the future, citing significant growth in key areas amidst a challenging economic environment. The company will host an investor conference call on July 30, 2024, to discuss these results further.

Netcapital Inc. (Nasdaq: NCPL, NCPLW) has launched a beta version of its secondary trading platform to a closed group of users. This platform, developed through a partnership with Templum Markets , aims to provide potential secondary trading opportunities for investors who purchase stock through Netcapital's funding portal. Templum operates an alternative trading system (ATS) approved in 53 U.S. states and territories for trading private securities.

Netcapital plans to offer secondary trading capability through Templum ATS to all its issuers and investors by the end of 2024. However, the launch is subject to regulatory approval and oversight. CEO Martin Kay emphasized that this feature addresses the lack of liquidity in private company investments, potentially giving Netcapital a competitive edge in the digital private markets landscape.

Netcapital has announced the immediate exercise of Series A-2 warrants, reducing their price from $0.25 to $0.155 per share. This decision will generate gross proceeds of approximately $2.2 million before fees and expenses. H.C. Wainwright & Co. acted as the exclusive placement agent. In return, Netcapital will issue new Series A-3 and Series A-4 warrants, each exercisable at $0.155 per share upon shareholder approval. Series A-3 warrants have a five-year expiration, while Series A-4 warrants expire in eighteen months. The funds will be used for general working capital. The offering is expected to close around May 29, 2024, subject to customary conditions.

Netcapital announced plans to conduct a reverse stock split, with a proposed ratio between 1-for-2 and 1-for-100, at a special stockholder meeting on July 24, 2024. This move aims to address the non-compliance notice received from Nasdaq regarding the company's failure to maintain a minimum bid price of $1.00 per share. Initially, Netcapital had until February 28, 2024, to meet this requirement but failed to do so. Nasdaq granted an extension until August 26, 2024. The reverse stock split is intended to help the company regain compliance and maintain its Nasdaq listing.

Netcapital Inc. (NCPL) announced that its subsidiary, Netcapital Securities Inc., applied for a broker-dealer license with FINRA to expand service offerings beyond Regulation Crowdfunding. The move aims to increase revenue through Reg A+ and Reg D deals, additional fees from client referrals, and partnerships with other broker-dealers.