ATLANTA - Volato Group, Inc. (NYSE American: SOAR), a private aviation company, disclosed on Monday that it has received a notice from the NYSE American LLC regarding non-compliance with the exchange's continued listing standards. The notice, dated June 18, 2024, indicates that Volato does not meet the minimum stockholders' equity requirements after reporting losses in recent fiscal years.
The NYSE American's standards, as stated in Section 1003(a)(i) and 1003(a)(ii) of the Company Guide, require a minimum stockholders' equity of $2.0 million and $4.0 million respectively, depending on the duration of reported losses. Volato must now submit a plan by July 18, 2024, outlining steps to regain compliance by December 18, 2024. Failure to submit or implement an accepted plan could lead to delisting proceedings.
Trading of Volato's common stock and warrants, under the symbols SOAR and SOAR.WS respectively, will continue on the NYSE American during the six-month period provided to the company to address these compliance issues. This development does not have an immediate effect on the listing or trading of Volato's shares and does not impact its business operations or SEC reporting obligations.
Volato has expressed its commitment to regaining compliance with the listing standards but has not guaranteed that it will achieve this within the given timeframe. Further details on the notice from the NYSE American are included in the Current Report on Form 8-K filed with the SEC on June 21, 2024, and can be accessed on Volato’s Investor Relations website.
The company specializes in private aviation services, including fractional ownership and charter flights, utilizing its fleet of HondaJets. Volato's operations are conducted through its DOT/FAA-authorized air carrier subsidiary or approved vendor air carriers.
This announcement is based on a press release statement and includes forward-looking statements regarding potential future compliance and actions, which are subject to various risks and uncertainties. Volato's future performance and compliance with the NYSE American's continued listing standards remain uncertain at this time.
In other recent news, Volato Group, Inc., a private aviation company, has announced a significant restructuring of its Board of Directors. In an effort to streamline its leadership, the firm has reduced its board size from seven to five, incorporating three Independent Directors into its governance structure.
This reshuffle includes the departure of four board members and the appointment of two new ones, Christopher G. Burger and Fred A. Colen, both seasoned professionals in the technology and aviation sectors.
The company's CEO, Matthew Liotta, was elected as Chairman of the Board. Michael Nichols, an Independent Director since August 2021, will assume the role of Lead Independent Director and continue his position as Chair of the Compensation Committee. The company emphasized that the departures and appointments were not due to any disagreements concerning the company's operations, policies, or practices.
In addition to the board changes, Volato has scheduled its first quarter 2024 earnings conference call for May 15, 2024. The call will discuss the company's financial results, which will be released before the market opens on the same day. These are among the recent developments for the company.
InvestingPro Insights
As Volato Group, Inc. grapples with the NYSE American's compliance notice, the company's financial health and market performance come into sharper focus. InvestingPro data reveals a challenging picture: Volato has a market capitalization of just $14.63 million, reflecting the diminished valuation of the company. The firm's revenue has seen a significant decline, with a -20.37% change over the last twelve months as of Q1 2024, and its gross profit margin has dipped into negative territory at -15.9%.
These financial strains are further highlighted by the company's performance on the stock market. Volato's stock has suffered a substantial -95.25% one-year price total return as of the midpoint of 2024, trading at a mere 1.34% of its 52-week high.
This is consistent with two critical InvestingPro Tips: the stock has taken a big hit over the last week and month, and it is trading near its 52-week low. Such metrics may raise concerns among investors regarding the company's ability to rebound in the near term.
For those considering an investment in Volato or monitoring its progress, additional InvestingPro Tips can provide deeper insights. There are 19 more tips available on InvestingPro, which could guide investors on the nuances of the company's financial health and stock performance. To access these invaluable tips and make more informed investment decisions, visit: https://www.investing.com/pro/SOAR. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research toolkit.
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