April 18, 2024
Jet.AI says it will submit a plan to Nasdaq to regain compliance after receiving a delisting letter from the exchange.
Las Vegas-based HondaJet provider Jet Token, which changed its name to Jet.AI earlier this year and went public in August, has received a delisting notice from The Nasdaq Stock Market.
The 2021 start-up says it intends to submit a plan to Nasdaq to regain compliance, which may include a proposed transfer to the Nasdaq Capital Market.
The Nasdaq Capital Market is one of the exchange’s market tiers containing early-stage companies with relatively lower market capitalizations.
Update @ 8:38 pm EST. After this article was published, Jet.AI’s Executive Chairman contacted us with the following written statement: “With nearly all de-SPACs such as ours this year trading down ~90% on average, we were not surprised by this notice, so please allow me to offer a bit of context. We are on the NASDAQ Global Markets tier for mega-cap companies because that came with years of free services that far exceeded our listing fees (but also came with more stringent listing requirements). If we move onto the NASDAQ Capital Markets tier, there is ostensibly no operational difference, and the NASDAQ Capital Market’s easier standards may be a better match for a growing company our size. We remain focused on demonstrating and communicating the earnings power of the business, and if we do that, the stock and things like listing requirements tend to take care of themselves.”
According to an SEC filing today, the notice was received on Dec. 1.
The company’s stockholders’ equity had fallen below the $10,000,000 required minimum for continued listing per the exchange’s rules.
The letter also noted that as of Sept. 30, 2023, the Jet Token did not meet alternative listing criteria for the market value standard or the total assets and total revenues standard.
The jet card and fractional provider has until Jan. 15, 2024, to submit a plan to regain compliance.
In determining the acceptability of the plan, Nasdaq will consider such things as the likelihood that the plan will result in compliance with Nasdaq’s continued listing criteria, the company’s past compliance history, the reasons for the company’s current non-compliance, other corporate events that may occur within the Nasdaq review period, the company’s overall financial condition and its public disclosures.
If the plan is accepted, Nasdaq will provide written confirmation and can grant an extension of up to 180 calendar days from the date of the letter to prove compliance.
If Nasdaq rejects the plan, Jet.AI will have the opportunity to appeal the decision to a panel.
However, there is no assurance that Nasdaq would grant the company’s request for approval of its compliance plan.
Last month, Jet.AI said it was negotiating with Bombardier to add Challenger 3500s to its fleet.
(Editor’s note – An earlier headline noted Jet Token received a “delisting notice.” The notice of non-compliance could lead to a delisting if not cured. We have updated the headline to more accurately reflect this.)
