Pyrophyte Acquisition Corp. (NYSE:PHYT), a special purpose acquisition company, is set to be suspended from the New York Stock Exchange (NYSE) as of today and will face delisting proceedings. This action follows the company's failure to complete an initial business combination within three years after its initial public offering, as required by NYSE regulations.
On Monday, the company received notification from the NYSE that its securities, including Class A ordinary shares, warrants exercisable for Class A ordinary shares at $11.50 each, and units comprising one Class A ordinary share and half of one warrant, will be delisted.
The NYSE's decision is based on Sections 102.06e and 802.01B of its Listed Company Manual, which stipulate a maximum period of three years for a special purpose acquisition company to remain listed without completing a business combination.
The delisting process commences with the suspension of trading before the market opens today, followed by the NYSE filing a Form 25 with the U.S. Securities and Exchange Commission to formalize the removal. Pyrophyte Acquisition Corp. has the right to appeal the decision but has indicated it will not pursue this option.
Following the suspension, the company's securities are expected to start trading on the OTC Pink Marketplace under the symbols PHYTF for units, PHYUF for Class A ordinary shares, and PHYWF for warrants. This transition to the over-the-counter market will allow trading to continue despite the absence of an NYSE listing.
The information in this article is based on a recent SEC filing by Pyrophyte Acquisition Corp.
InvestingPro Insights
As Pyrophyte Acquisition Corp. (NYSE:PHYT) faces delisting from the New York Stock Exchange, investors may find additional context from recent financial data and expert insights valuable. According to InvestingPro, PHYT's market capitalization stands at $130.77 million, reflecting its current valuation as it transitions to the OTC Pink Marketplace.
Despite the impending delisting, InvestingPro Tips highlight that PHYT has been profitable over the last twelve months, with a basic EPS (Continuing Operations) of $0.19 USD. This profitability is noteworthy for a SPAC that has not completed a business combination, potentially indicating efficient management of its capital.
Interestingly, an InvestingPro Tip reveals that PHYT's stock generally trades with low price volatility. This characteristic may provide some stability for investors as the company navigates its transition to over-the-counter trading. Additionally, the stock is trading near its 52-week high, with a price that is 99.06% of its highest point over the past year.
For those considering PHYT's future prospects, it's worth noting that InvestingPro calculates a fair value of $5.95 USD for the stock, which is significantly lower than its previous closing price of $11.56 USD. This discrepancy could be particularly relevant as the stock moves to a less liquid market.
Investors seeking a more comprehensive analysis can access 11 additional InvestingPro Tips for PHYT, offering deeper insights into the company's financial health and market position during this critical transition period.
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