Mountain Crest Acquisition Corp. V, a special purpose acquisition company, has resolved its prior non-compliance with Nasdaq Listing Rule 5250(c)(1), which mandates timely filing of periodic reports with the SEC. The company, which operates under the trading symbols MCAG, MCAGR, and MCAGU on the Nasdaq Stock Market LLC, had previously been in breach due to delayed filings of its annual report for 2023 and its quarterly report for the first quarter of 2024.
On July 18, 2024, Mountain Crest was notified by Nasdaq that its failure to file the required reports resulted in non-compliance with the exchange's listing rules.
However, following the company's submission of its Form 10-K for the year ended December 31, 2023, on August 26, 2024, Nasdaq has now confirmed that Mountain Crest has regained compliance with the Listing Rule. This development, as indicated in a letter from Nasdaq received by the company on Wednesday, concludes the delisting matter.
Mountain Crest Acquisition Corp. V, incorporated in Delaware and headquartered in New York, operates in the blank check sector under the SIC code 6770, which is often associated with companies established to engage in merger and acquisition opportunities. The company's executive offices are located at 524 Broadway, 11th Floor, New York, NY 10012.
The resolution of this compliance issue comes as a significant step for Mountain Crest, which as an emerging growth company, is subject to intense scrutiny regarding its adherence to financial reporting standards. The company's CEO, Suying Liu, signed the SEC filing dated Thursday, September 12, 2024, confirming the company's return to compliance with Nasdaq's listing requirements. This information is based on a press release statement.
"In other recent news, Mountain Crest Acquisition Corp. V has taken on a direct financial obligation by issuing an unsecured promissory note to its sponsor, Mountain Crest Global Holdings LLC.
The note, valued at up to $500,000, stipulates that the borrowed funds are to be repaid upon the successful completion of an initial business combination or the liquidation of the company if a business combination does not occur. Notably, the note will not accrue interest.
If Mountain Crest Acquisition Corp. V does not complete a business combination, repayment will come from any remaining funds outside of the company’s trust account. The proceeds from this note are intended for the company's working capital purposes.
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