NEW YORK - Aquaron Acquisition Corp. (NASDAQ:AQU), a special purpose acquisition company, has received a notice of deficiency from the Nasdaq Stock Market due to a delay in filing its annual report, the company disclosed today. The notice, dated April 19, 2024, indicates that Aquaron Acquisition has not met the Nasdaq Listing Rule 5250(c)(1) because it failed to file its Form 10-K for the fiscal year ending December 31, 2023, on time.
The notice is not an indication of imminent delisting but serves as a formal warning. The company's securities will continue to be listed and traded on the Nasdaq Capital Market without immediate impact. Aquaron Acquisition has been given 60 days, until June 18, 2024, to submit a plan to regain compliance with the Nasdaq's listing requirements.
If the plan is accepted, Nasdaq may grant an extension of up to 180 days from the Form 10-K's original due date, or until October 14, 2024, for the company to file the overdue report and regain compliance.
If Aquaron Acquisition fails to comply within the given timeframe, including any extensions, the company's stock may be delisted from the exchange. However, the company would have the right to appeal the delisting decision to a Nasdaq hearings panel.
Aquaron Acquisition has expressed its intent to file the required Form 10-K with the U.S. Securities and Exchange Commission as soon as the financial statements for the year ended December 31, 2023, are prepared and reviewed.
The company, incorporated in Delaware, operates as a blank check entity with the objective of merging with or acquiring one or more businesses. While not restricted to a specific industry, Aquaron Acquisition is focused on identifying targets within the new energy sector.
The company has stated it will not consider any business combination with a company whose financial statements are audited by a firm that cannot be inspected by the United States Public Company Accounting Oversight Board for two consecutive years starting in 2021, or any entity with China operations consolidated through a variable interest entity (VIE) structure.
This announcement is based on a press release statement from Aquaron Acquisition Corp.
InvestingPro Insights
In light of Aquaron Acquisition Corp.'s recent notice of deficiency from Nasdaq, investors may be seeking additional data to gauge the company's financial health and market position. According to InvestingPro data, Aquaron Acquisition Corp. has a market capitalization of approximately $49.77 million USD. The company's P/E ratio stands at a high 74.89, reflecting a valuation that is quite rich compared to earnings. This is further substantiated by an adjusted P/E ratio for the last twelve months as of Q3 2023, which is even higher at 80.99.
From an operational standpoint, the company has reported a negative operating income of $0.97 million USD for the same period. Despite these challenges, Aquaron Acquisition Corp. has been profitable over the last twelve months, with a basic and diluted EPS from continuing operations at $0.14 USD. This profitability is underscored by a return on assets of 5.55%.
InvestingPro Tips further reveal that Aquaron Acquisition Corp.'s stock is currently in overbought territory based on the RSI, and it trades with low price volatility. The company's liquid assets also exceed its short-term obligations, providing some financial flexibility. However, it is worth noting that Aquaron Acquisition does not pay a dividend to shareholders, which might be a consideration for income-focused investors.
For investors looking for a deeper dive into Aquaron Acquisition Corp.'s financials and market performance, there are additional InvestingPro Tips available. By visiting https://www.investing.com/pro/AQU, investors can access a comprehensive set of tips to aid in their investment decisions. Moreover, using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more insights to inform their strategies.
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