Interactive Strength, Inc., an Austin, Texas-based manufacturer of electronic and electrical equipment, has received a notice from the Nasdaq Stock Market indicating the company's non-compliance with the exchange's minimum bid price requirement.
The notice, dated August 20, 2024, was issued after the company's common stock, traded under the ticker NASDAQ:TRNR, closed below the required $1.00 per share threshold for 30 consecutive business days.
The notification does not immediately affect the company's stock listing. Interactive Strength has been granted an initial 180-day period, ending on February 18, 2025, to meet Nasdaq's minimum bid price rule. To regain compliance, the company's stock must maintain a closing bid price of at least $1.00 for a minimum of 10 straight business days within this timeframe.
If the company fails to achieve compliance within the initial grace period, it may qualify for a second 180-day period, contingent on meeting all other initial listing standards for The Nasdaq Capital Market, except for the minimum bid price. The company would also need to inform Nasdaq of its intention to resolve the deficiency.
Interactive Strength has stated its intention to monitor its stock's closing bid price closely and is considering options to address the issue, including a potential reverse stock split. However, there is no guarantee that the company will successfully regain compliance with the minimum bid requirement.
Should Interactive Strength fail to meet the minimum bid price or not qualify for an additional compliance period, Nasdaq will issue a delisting notice, which the company can appeal before a Hearings Panel.
In other recent news, Interactive Strength Inc. has been busy expanding its global footprint and adjusting its financials. The fitness equipment manufacturer secured a significant order for its CLMBR vertical climbing machines in Germany, marking a strategic expansion into the European market. Additionally, the company has entered the Gulf Cooperation Council countries through an exclusive distribution agreement with MEFITPRO.
Interactive Strength also made significant financial maneuvers, such as expanding its Series A Convertible Preferred Stock capacity from 7 million to 10 million shares and adjusting the terms of a convertible note and warrant with an investor.
The company also executed a 1-for-40 reverse stock split to comply with the Nasdaq Capital Market's minimum bid price requirement, reducing the number of outstanding shares from about 26.6 million to approximately 664,526.
To further strengthen its financial position, Interactive Strength raised approximately $1 million through a registered direct offering and concurrent private placement, selling over 5 million shares of its common stock alongside unregistered warrants.
The company also converted $3 million of its $8 million senior loan into equity, reducing its debt liabilities, with the maturity date for the remaining balance extended to December 2024. These are all recent developments highlighting the company's strategic financial maneuvers.
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