Cineverse Corp. (NASDAQ:CNVS), a company specializing in video tape rental services, has received a notice from The Nasdaq Stock Market indicating that it no longer satisfies the minimum bid price requirement. The notification, dated Wednesday, was issued after the company's Class A common stock closed below the $1 threshold for 30 consecutive business days.
The Nasdaq Listing Rule 5550(a)(2) mandates that the bid price of a company's common stock must not fall below $1 per share. Falling short of this requirement does not lead to an immediate delisting. Cineverse Corp. is actively monitoring its stock price and intends to take measures to regain compliance with Nasdaq's continued listing standards.
The company has until January 6, 2025, to address the bid price deficiency. To regain compliance, the common stock's closing bid price must reach at least $1 per share for at least ten consecutive business days during the 180-day grace period. If Cineverse Corp. fails to meet the requirement by the deadline, it may be granted an additional 180-day period to achieve compliance, contingent on meeting certain conditions and providing a written notice of its intention to rectify the shortfall.
This development is the latest in the company's history, previously known as Cinedigm (NASDAQ:CNVS) Corp., Cinedigm Digital Cinema Corp., and Access Integrated Technologies, Inc. The company, headquartered in New York and incorporated in Delaware, is now focused on regaining compliance to maintain its listing on the Nasdaq Capital Market.
The information regarding this notice is based on the company's recent SEC filing.
In other recent news, Cineverse Corp. has regained compliance with Nasdaq Listing Rules, marking the conclusion of a period of oversight established to ensure regulatory adherence. In a significant move, Cineverse has teamed up with deep-tech startup XL8 to enhance its Matchpoint platform with AI-powered captioning and localization capabilities, aiming to streamline the process of captioning and localizing large content libraries.
The company's Podcast Network (LON:NETW) has also seen a surge in its listener base and downloads, recording a 49% revenue increase and aiming to increase monthly downloads and streams to over 20 million by the end of the fiscal year. Cineverse has entered into a co-financing partnership with BondIt Media Capital for the production, acquisition, and distribution of North American film projects, commencing with the domestic distribution rights of "Terrifier 3".
Additionally, the company has extended its partnership with Konami Cross Media NY, Inc., ensuring continued distribution of the widely recognized anime series Yu-Gi-Oh! These recent developments highlight Cineverse's strategic moves in the media industry, with a focus on enhancing its services and expanding its reach.
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