Bakkt Receives NYSE Warning Over Compliance Issues
Crypto trading platform Bakkt has received a warning from the New York Stock Exchange (NYSE) regarding compliance with stock price requirements. The NYSE raised concerns after Bakkt’s stock price traded below $1.00 per share for 30 consecutive days as of March 12. However, the notice does not immediately result in delisting from the NYSE.
September Deadline to Restore Stock Value
Bakkt has informed the NYSE that it plans to rectify the stock price issue and meet the required listing standards. The company now has six months to bring its stock price back up to the minimum requirement. If Bakkt takes an action requiring shareholder approval to address the issue, it must notify the NYSE. The non-compliance will be considered resolved if the stock price promptly rises above $1.00 per share and remains there for 30 consecutive trading days.
Bakkt’s Financial Health Warning in February
In February, Bakkt issued a warning about its financial health. In a document filed with the Securities and Exchange Commission (SEC), the company expressed concerns about its operational viability due to inadequate cash reserves. Bakkt stated that it might not be able to continue as a going concern and that its current cash and restricted cash might not be sufficient to fund operations for the next 12 months. The company also acknowledged the need to generate sustainable operating profit and sufficient cash flows or raise additional capital in the near future.
Hot Take: Bakkt Faces Delisting Risk
Bakkt, a crypto trading platform, has received a warning from the New York Stock Exchange (NYSE) over compliance issues related to its stock price requirements. The NYSE raised concerns after Bakkt’s stock price fell below $1.00 per share for 30 consecutive days. While the warning does not immediately result in delisting, Bakkt has six months to rectify the issue and meet the minimum requirement. If the stock price promptly rises above $1.00 per share and remains there for 30 consecutive trading days, the non-compliance will be considered resolved.
Earlier this year, Bakkt issued a warning about its financial health, expressing concerns about its operational viability due to inadequate cash reserves. The company stated that it might not be able to continue as a going concern and that its current cash and restricted cash might not be sufficient to fund operations for the next 12 months. Bakkt acknowledged the need to generate sustainable operating profit and sufficient cash flows or raise additional capital in the near future.
It remains to be seen how Bakkt will address these compliance issues and restore confidence in its stock price. The next few months will be crucial for the platform as it works towards meeting the NYSE’s requirements. Investors and stakeholders will closely monitor Bakkt’s actions and decisions during this period.
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