New Horizon Aircraft Ltd. (NASDAQ:HOVR), a manufacturer in the aerospace sector, has received a notice from the Nasdaq Stock Market LLC indicating a non-compliance with the minimum bid price requirement. The notice, issued on Monday, July 19, 2024, states that the company's Class A ordinary shares have been trading below the minimum $1.00 per share for over 30 consecutive business days, violating Nasdaq's Listing Rule 5550(a)(2).
The company, which was formerly known as Pono Capital Three, Inc., has been given a compliance period of 180 calendar days, or until January 15, 2025, to address this issue and meet the minimum bid price criterion. To regain compliance, New Horizon Aircraft's share price must close at $1.00 or higher for at least ten consecutive business days before the given deadline.
Should the company fail to meet the Nasdaq Capital Market's requirement by January 15, 2025, it may be granted an additional 180 days to comply. This is contingent upon meeting all other initial listing standards, except for the bid price, and potentially implementing a reverse stock split if necessary.
The notification from Nasdaq does not immediately affect the listing of the company's shares, which will continue to trade under the symbol "HOVR". New Horizon Aircraft is currently exploring options to regain compliance and has expressed its intention to resolve the deficiency within the allotted 180-day period.
However, there are no guarantees that the company will achieve compliance within the timeline or maintain its listing on the Nasdaq Capital Market. In the event of a failure to regain compliance, Nasdaq will issue a delisting notification, which the company has the right to appeal.
In other recent news, Horizon Aircraft is making significant strides in its eVTOL prototype testing. The company has reported positive results from its flight-testing program, with its large-scale prototype nearing full transition to forward flight. A key achievement in recent testing phases includes the validation of a patent-pending yaw control system, crucial to Horizon's patented HOVR Wing technology, aimed at enhancing passenger comfort and pilot control.
The company has also commenced production of full-scale propulsion units, a crucial technical step towards constructing the full-scale prototype aircraft. Their Cavorite X7 eVTOL design, expected to outperform all-electric competitors in speed and cargo capacity, is on track for completion and testing by 2026.
Horizon Aircraft will be participating in the upcoming EF Hutton Annual Global Investor Conference and The International Aerospace Innovation Forum. These developments showcase the company's commitment to achieving its target timeline and contributing to the evolving Advanced Air Mobility market.
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