NextPlay Received Notice From NASDAQ
NextPlay Technologies, Inc. received a notice from NASDAQ for not holding an annual meeting of shareholders within twelve months, leading to non-compliance with NASDAQ's Listing Rules. The company faces the risk of delisting from The Nasdaq Stock Market.
Negative
Risk of delisting from The Nasdaq Stock Market due to non-compliance with Listing Rules for not holding an annual meeting within twelve months.
The notification received by NextPlay Technologies from NASDAQ regarding non-compliance with the Annual Meeting Rules signifies a procedural lapse that could potentially lead to the delisting of the company's securities. This development is critical because being listed on a major exchange like NASDAQ provides a company with liquidity, better visibility among investors and generally lower cost of capital. Delisting can trigger a decline in investor confidence and potentially lead to a drop in the stock price due to reduced visibility and perceived credibility.
Investors and stakeholders should be aware of the immediate and long-term implications of such a notification. In the short term, the company might experience volatility in its stock price as the market reacts to the possibility of delisting. In the long term, if delisting occurs, it could affect the company's ability to raise capital and might necessitate seeking listing on alternative exchanges, which often have less stringent requirements but also less prestige and may not provide the same level of exposure.
From a legal perspective, NASDAQ's Annual Meeting Rules are designed to ensure that companies adhere to certain governance practices, which include holding regular shareholder meetings. These meetings are a fundamental aspect of shareholder rights, allowing investors to vote on important company matters and board elections. Non-compliance with these rules is taken seriously by the exchange and can result in delisting, which is a legal process that removes a company's stock from the exchange.
The notice of potential delisting is a formal step in this process and indicates that the company will have an opportunity to present its case before the Nasdaq Hearings Panel. The outcome of this hearing will be pivotal for the company's future on the exchange. It's crucial for investors to monitor the developments of this hearing, as the final decision will have significant legal and financial ramifications for the company and its shareholders.
From a financial standpoint, the failure to hold an annual shareholder meeting within the stipulated time frame raises concerns about NextPlay Technologies' corporate governance and operational management. Investors and analysts often scrutinize such events for underlying issues that may not be immediately apparent from financial statements alone. The market generally views governance issues negatively and this can be reflected in the company's cost of equity and debt, as well as its overall valuation.
It is also important to note that if the company is delisted, it may find it more difficult to access public capital markets, which could hamper its growth and operational strategies. Current investors should assess the potential impact on their portfolios and consider the company's plans to remedy the situation and regain compliance. The company's response to this notice and its ability to convince the Panel of its commitment to compliance will be crucial in determining its financial health going forward.
03/12/2024 - 03:19 AM
SUNRISE, FL, March 12, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire -- NextPlay Technologies, Inc. (NASDAQ: NXTP) (the “Company”), a digital native ecosystem for finance, digital advertisers, and video gamers, announced today the Company has received a notice from NASDAQ that it has not held an annual meeting of shareholders within twelve months of the end of the Company’s fiscal year end, and no longer complies with NASDAQ’s Listing Rules (the “Annual Meeting Rules”) for continued listing. The Company has not regained compliance with the Annual Meeting Rule. Accordingly, this matter serves as an additional basis for delisting the Company’s securities from The Nasdaq Stock Market.
This notice is formal notification that the Nasdaq Hearings Panel (the “Panel”) will consider this matter in their decision regarding the Company’s continued listing on The Nasdaq Capital Market.
About NextPlay Technologies
NextPlay Technologies, Inc. (Nasdaq: NXTP) is a technology solutions company offering games, in-game advertising, digital banking, and crypto-banking services to consumers and corporations within a growing worldwide digital ecosystem. NextPlay’s engaging products and services utilize innovative AdTech, Artificial Intelligence and Fintech solutions to leverage the strengths and channels of its existing and acquired technologies.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of, and within the safe harbor provided by the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, 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 give our current expectations, opinions, belief or forecasts of future events and performance. A statement identified by the use of forward-looking words including “will,” “may,” “expects,” “intends,” “projects,” “anticipates,” “plans,” “believes,” “estimate,” “should,” and certain of the other foregoing statements may be deemed forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Factors that may cause such a difference include risks and uncertainties including, and not limited to, our need for additional capital which may not be available on commercially acceptable terms, if at all, which raises questions about our ability to continue as a going concern; our ability to file our Annual Report on Form 10-K for the fiscal year ended February 23, 2023 and/or our Quarterly Reports on Form 10-Q for the quarters ended May 31, 2023, August 31, 2023 and November 30th, 2023 within the period provided by Nasdaq to do so; our ability to timely submit an acceptable updated Compliance Plan to regain compliance with the Nasdaq continued listing rules within the period provided by Nasdaq; whether Nasdaq will accept our updated Compliance Plan to regain compliance with the Nasdaq continued listing rules; our ability to timely file our subsequent periodic reports with the SEC; our ability to maintain the listing of our common stock on the Nasdaq Capital Market; current regulation governing digital currency activity is often unclear and is evolving; the future development and growth of digital currencies are subject to a variety of factors that are difficult to predict and evaluate, many of which are out of our control; the value of digital currency is volatile; amounts owed to us by third parties which may not be paid timely, if at all; certain amounts we owe under outstanding indebtedness which are secured by substantially all of our assets and penalties we may incur in connection therewith; the fact that we have significant indebtedness, which could adversely affect our business and financial condition; uncertainty and illiquidity in credit and capital markets which may impair our ability to obtain credit and financing on acceptable terms and may adversely affect the financial strength of our business partners; the officers and directors of NextPlay have the ability to exercise significant influence over the company; stockholders may be diluted significantly through our efforts to obtain financing, satisfy obligations and complete acquisitions through the issuance of additional shares of our common or preferred stock; if we are unable to adapt to changes in technology, our business could be harmed; if we do not adequately protect our intellectual property, our ability to compete could be impaired; unfavorable changes in, or interpretations of, government regulations or taxation of the evolving Internet and e-commerce industries which could harm our operating results; risks associated with the operations of, the business of, and the regulation of, Longroot and NextBank International (formerly IFEB); the markets in which we participate being highly competitive, and because of that we may be unable to compete successfully with our current or future competitors; our potential inability to adapt to changes in technology, which could harm our business; the volatility of our stock price; and that we have incurred significant losses to date and require additional capital which may not be available on commercially acceptable terms, if at all. More information about the risks and uncertainties faced by NextPlay are detailed from time to time in NextPlay’s periodic reports filed with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, under the headings “Risk Factors”. These reports are available at www.sec.gov
SOURCE: NextPlay Technologies, Inc.
Company Contacts:nithinan.boonyawattanapisut@nextplaytechnologies.com
Why did NextPlay Technologies, Inc. receive a notice from NASDAQ?
NextPlay Technologies, Inc. received a notice from NASDAQ for not holding an annual meeting of shareholders within twelve months.
What is the risk faced by NextPlay Technologies, Inc. due to non-compliance with NASDAQ's Listing Rules?
The risk faced by NextPlay Technologies, Inc. is the potential delisting of the company's securities from The Nasdaq Stock Market.
What will the Nasdaq Hearings Panel consider in their decision regarding NextPlay Technologies, Inc.'s continued listing on The Nasdaq Capital Market?
The Nasdaq Hearings Panel will consider the non-compliance with the Annual Meeting Rule in their decision regarding NextPlay Technologies, Inc.'s continued listing on The Nasdaq Capital Market.
