DUBLIN - Brera Holdings PLC (NASDAQ:BREA), a company specializing in the development of a global portfolio of emerging football and sports clubs, disclosed today that it has received a notification from The Nasdaq Stock Market LLC regarding non-compliance with Nasdaq's financial reporting requirements. The notice, dated May 16, 2024, was issued because Brera Holdings has not filed its Annual Report on Form 20-F for the year ended December 31, 2023.
The Nasdaq Listing Rule 5250(c)(1) requires timely submission of periodic financial reports for continued listing. Brera Holdings now has until July 15, 2024, to submit a plan to regain compliance.
If the plan is accepted by Nasdaq, the company may be granted an extension of up to 180 days from the original due date of the report, or until November 11, 2024, to file the required Form 20-F. Should Nasdaq reject the plan, Brera Holdings will have the chance to appeal the decision to a Nasdaq Hearings Panel.
As of now, the company's non-compliance has not affected the listing of its Class B Ordinary Shares on the Nasdaq Capital Market. Brera Holdings has expressed its intention to file the overdue annual report before the July 15 deadline.
Brera Holdings has been active in the sports industry, owning the trademarked FENIX Trophy Tournament and expanding its reach to various football clubs around the world. The company's portfolio includes Brera FC in Milan, Brera Tchumene FC in Mozambique, Fudbalski Klub Akademija Pandev in North Macedonia, as well as strategic stakes in other sports entities such as Manchester United (NYSE:MANU) PLC and Italian Serie A1 women's volleyball team UYBA Volley S.s.d.a.r.l.
The company's strategy involves value creation from undervalued sports clubs and talent, business growth through innovation, and generating socially impactful outcomes. Despite the current compliance issue, Brera Holdings continues to focus on expanding its business in the sports sector.
This news is based on a press release statement from Brera Holdings PLC.
InvestingPro Insights
As Brera Holdings PLC (NASDAQ:BREA) navigates its current compliance challenges with Nasdaq's financial reporting requirements, potential and current investors are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, Brera Holdings has a market capitalization of 14.8 million USD, which is reflective of the company's size in the competitive sports industry landscape.
InvestingPro Tips for Brera Holdings indicate that the company holds more cash than debt on its balance sheet, which may provide some financial flexibility as it works to resolve the reporting issues.
Moreover, Brera Holdings does not pay a dividend to shareholders, which could be a factor for income-focused investors to consider. For those interested in a deeper dive into the company's financials and performance metrics, there are additional InvestingPro Tips available at https://www.investing.com/pro/BREA.
Other key InvestingPro Data metrics highlight the company's financial performance over the last twelve months as of Q2 2023. Brera Holdings reported revenue of 0.12 million USD, with a gross profit margin of 44.94%. Still, the company has faced challenges, as evidenced by a substantial operating income margin of -2264.78%, reflecting operational difficulties that may have contributed to the recent non-compliance notice.
Investors tracking the company's stock should note that it has experienced a large price uptick over the last six months, with a total return of 40.18%. This performance suggests a significant level of price volatility, a factor that should be taken into consideration when assessing the company's stock. To gain further insights and access to more than six InvestingPro Tips, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more comprehensive understanding of Brera Holdings' market position.
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