Surf Air receives notice of possible delisting from NYSE

After its stock fell below $1 for 30 consecutive trading days Surf Air received a delisting notice from the New York Stock Exchange.

By Doug Gollan, April 9, 2024

Surf Air Mobility Inc. (NYSE: SRFM) said that on April 2, 2024, the New York Stock Exchange notified it that it was not in compliance with Section 802.01C of the NYSE Listed Company Manual.

The deficiency is because the average closing price of Surf Air’s common stock was less than $1.00 over a consecutive 30 trading-day period.

The NYSE notice does not immediately impact Surf Air’s common stock listing.

The stock will continue to be listed and traded on the NYSE, subject to Surf Air’s compliance with other NYSE listing standards.

Surf Air said it plans to notify the NYSE within 10 business days that it intends to regain compliance and cure the stock price deficiency.

Surf Air can regain compliance at any time within the six months following receipt of the NYSE notice if, on the last trading day of any calendar month during the cure period, Surf Air has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.

The company said it would consider alternatives, including a reverse stock split.

The reverse split would require stockholder approval no later than Surf Air’s next annual meeting of stockholders.

The company stated in a press release, “The notice is not anticipated to impact the ongoing business operations of Surf Air and its subsidiaries or its reporting requirements with the U.S. Securities and Exchange Commission.”

Surf Air 2023 financials

Surf Air reported its Q4 and 2023 financial results last month.

Full-year 2023 GAAP revenue of $60.5 million and Pro Forma revenue of $112.9 million were up 12% year over year.

At the same time, it reported a full-year 2023 GAAP Net Loss of $250.7 million and a Pro Forma Net Loss of $185.0 million.

The result includes investment in research and development for electrification and software, stock-based compensation, impairments, transaction costs, and other non-recurring items.

Its Full Year 2023 Pro Forma Adjusted EBITDA loss was $50.9 million.

Surf Air expects revenue in the range of $28.5 million to $29.5 million for Q1 2024.

The pro forma adjusted EBITDA loss is projected to be between $17 million and $14 million, which excludes the expected impact of stock-based compensation, changes in the fair value of financial instruments, and other non-recurring items.

In announcing the results, CEO Stan Little said, “We’ve achieved two significant milestones: our direct listing on the NYSE and the completion of our merger with Southern Airways. We have also advanced our growth pillars of expanding our leading regional airline network and developing a proprietary powertrain technology to electrify smaller aircraft.”

The private flight provider’s stock price closed at $0.86.

Its 52-week range was between $0.65 and $5.00.

(Editor’s note – An earlier headline noted Surf Air 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.)

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