November 15, 2024
Jet Token, Jet.AI received a non-compliance notice from NASDAQ after its stock traded under $1 for 30 consecutive business days.
According to an SEC filing yesterday after the market closed, Las Vegas-based Jet.AI, formerly Jet Token, received its second notice of non-compliance. The notice could lead to a delisting if not cured.
After its SPAC-merger IPO last year, it received an initial delisting notice from NASDAQ in December.
The first delisting notice was issued because the company’s stockholders’ equity fell below the $10 million minimum required for continued listing per the Nasdaq Stock Market.
One remedy would be transfering to the Nasdaq Capital Market, one of the exchange’s market tiers containing early-stage companies with lower market capitalizations.
This notice is due to its stock pricing trading under one dollar for 30 consecutive days the market was open.
Jet.AI said it received the notice on April 15 and has up to a year to regain compliance.
“This notice was not unexpected, and the company is working with NASDAQ to return to compliance. It’s tough to watch the playing field and not the scoreboard sometimes when it comes to share price – but we remain committed to demonstrating the earnings power of the business and to disciplined capital allocation – through both the ups and the downs,” Chairman Mike Winston tells Private Jet Card Comparisons.
The company saw revenue in 2023 fall and losses increase.
the decline came as sales of whole aircraft and fractional shares fell from $17.2 million in 2022 to zero a year ago.
The company plans to change that by launching a Challenger 3500 fractional program as soon as it can consummate a deal with Bombardier.
In announcing its 2023 results, the company said that at the end of last year, it had $2.1 million in cash and equivalents, including approximately $500,000 of restricted cash under its aircraft leasing arrangements. Winston said the company also raised $16.5 in a convertible preferred.
JTAI closed Friday at 72 cents.
Its 52-week range has seen it trade from $0.66 to $17.5
(Editor’s note – An earlier headline noted Jet.AI 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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