FORT MYERS, Fla. - American Oncology Network (LON:NETW) (NASDAQ:AONC), a community-based oncology practice network, has announced its intention to voluntarily delist its Class A common stock and warrants from the Nasdaq Capital Market.
The decision, advised by a Special Committee of independent directors and approved by the Board, is set to take effect with the filing of a Form 25 with the Securities and Exchange Commission around May 31, 2024. Consequently, the expected last trading day on Nasdaq for AON's securities is projected to be approximately June 7, 2024.
The Special Committee concluded that the delisting would be advantageous for the Company and its stakeholders, considering factors such as the absence of research coverage, a lack of active trading market for its securities, and the substantial operational costs and management focus required for continued regulatory compliance.
CEO Todd Schonherz highlighted that despite the delisting, AON has experienced significant growth, with a five-year revenue compound annual growth rate (CAGR) of 42%, the addition of 40 providers, and the expansion with four new practices this year. He also pointed out AON's strong financial position, with over $100 million in cash and short-term securities as of March 31, 2024.
Post-delisting, AON expects its common stock and warrants to trade on an over-the-counter (OTC) market operated by OTC Markets Group Inc. Still, there is no assurance that brokers will maintain a market for the Company's securities.
American Oncology Network was founded in 2018 and has since grown to include more than 240 providers across 21 states. The network aims to support the success of community oncology by providing physicians with resources to maintain independent practices while delivering high-quality patient care.
The information in this article is based on a press release statement from American Oncology Network.
InvestingPro Insights
As American Oncology Network (NASDAQ:AONC) prepares to delist from the Nasdaq Capital Market, investors are looking closely at the company's financial health and stock performance. According to InvestingPro data, AONC currently has a market cap of approximately $93.93M, which reflects the size of the company in the financial markets.
Despite the CEO's mention of a strong financial position, the company's P/E ratio stands at -2.21, indicating that investors have been willing to pay less per dollar of earnings, potentially due to the company's lack of profitability in the last twelve months.
InvestingPro Tips reveal that AONC's stock has been under significant pressure, with a one-week price total return of -24.21% and a one-year price total return of -74.34%. This performance aligns with the company's decision to delist, as it could be a response to the reduced investor interest and trading activity.
The stock's RSI suggests it is in oversold territory, which might attract bargain hunters looking for a potentially undervalued stock. Moreover, the company's valuation implies a strong free cash flow yield, which could be a sign of underlying value despite recent price declines.
For investors seeking a deeper analysis of American Oncology Network, there are additional InvestingPro Tips available, providing more nuanced insights into the company's financials and stock performance. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these tips, which could be particularly useful in understanding the implications of AONC's delisting and future prospects on the OTC market.
Investors can explore further details and tips on AONC's financial health and stock performance by visiting https://www.investing.com/pro/AONC, where a total of 12 InvestingPro Tips are available to help make informed decisions.
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