NEW YORK and TOKYO - Pixie Dust Technologies, Inc. announced its intention to delist its American Depositary Receipts (ADRs) from the NASDAQ Capital Market and to deregister with the U.S. Securities and Exchange Commission (SEC). The company's board of directors resolved to take these actions today, citing the substantial costs and ongoing reporting obligations in the U.S. as the primary reasons behind the decision.
The company originally listed its ADRs on NASDAQ in August 2023 to access U.S. capital markets and raise funds through an initial public offering. Since the listing, Pixie Dust Technologies has met disclosure obligations under U.S. securities laws and established internal control systems as per the Sarbanes-Oxley Act. However, the company now plans to reallocate its financial and human resources towards business growth rather than maintaining its NASDAQ listing.
Pixie Dust Technologies will file Form 25 with the SEC approximately 10 days after notifying NASDAQ, which will formally initiate the delisting process. The delisting is set to become effective on November 15, 2024. The company's ADR program is expected to terminate on January 21, 2025, following the delisting and deregistration applications. The termination of ongoing disclosure obligations under the Securities Exchange Act is projected for February 12, 2025, 90 days after the planned filing of Form 15-F with the SEC.
Following the delisting and deregistration, Pixie Dust Technologies' shares will not be listed on any exchange. ADR holders are advised to contact The Bank of New York Mellon (NYSE:BK), the Depositary Bank, for queries regarding the settlement of outstanding common shares.
This announcement includes forward-looking statements regarding the company's future operations, financial condition, business strategies, market opportunities, and potential growth, which are subject to various risks and uncertainties. These factors were discussed in the company's most recent annual report filed with the SEC.
The information in this article is based on a press release statement from Pixie Dust Technologies.
In other recent news, Pixie Dust Technologies, Inc., announced a projected surge in its total revenue for the fiscal year ending April 30, 2024. The unaudited and unreviewed figures indicate an expected increase in revenue to between 1.00 and 1.02 billion yen, a rise of 41.9% to 44.7% compared to the previous fiscal year. This optimistic business outlook is tied to the company's strategic focus on two main product development areas: "Personal Care & Diversity" and "Workspace (LON:WKP) & Digital Transformation."
In addition to its financial projections, Pixie Dust Technologies introduced the VUEVO™ Display, designed to enhance communication by providing real-time subtitling and translation in over 100 languages. The product aims to address the challenges faced by commercial facilities, public transportation, and accommodation services in Japan when dealing with the rising number of foreign visitors and residents. The VUEVO Display leverages a proprietary wireless microphone and voice recognition technology to display subtitles and translations on a transparent screen, enabling face-to-face communication while allowing users to see each other's facial expressions and gestures.
These are the latest developments from Pixie Dust Technologies, which continues to innovate in the fields of personal care, diversity, workspace, and digital transformation.
InvestingPro Insights
Pixie Dust Technologies' decision to delist from NASDAQ and deregister with the SEC comes amid challenging financial circumstances, as revealed by recent InvestingPro data. The company's market capitalization stands at a modest $23.94 million, reflecting its small-cap status. Despite a significant revenue growth of 40.91% over the last twelve months, Pixie Dust is grappling with profitability issues, as evidenced by its negative P/E ratio of -1.86.
InvestingPro Tips highlight that the company is "quickly burning through cash" and "not profitable over the last twelve months," which may have contributed to the decision to reduce costs associated with maintaining a U.S. listing. The stock's performance has been notably weak, with InvestingPro data showing a staggering -81.06% price return over the past year, and it's currently trading at just 18.2% of its 52-week high.
On a positive note, Pixie Dust Technologies maintains "impressive gross profit margins," with InvestingPro data revealing a 66.58% gross profit margin for the last twelve months. This strength in margin could potentially support the company's efforts to redirect resources towards business growth post-delisting.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Pixie Dust Technologies, providing deeper insights into the company's financial health and market position.
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