ATLANTA - Volato Group, Inc. (NYSE American: SOAR), a private aviation company, has announced that its compliance plan has been accepted by the NYSE American, enabling its continued listing on the exchange. This development follows a notice received by the company on June 18, 2024, indicating a shortfall in meeting the exchange's continued listing standards regarding stockholders' equity.
The NYSE American's standards require a minimum stockholders' equity of $2.0 million if a company reports losses from continuing operations and/or net losses in two of its three most recent fiscal years, and $4.0 million if losses are reported in three of its four most recent fiscal years. Volato was mandated to present a plan by July 18, 2024, detailing measures to regain compliance by December 18, 2025.
On September 5, 2024, Volato received confirmation that the NYSE American had approved its plan and granted the company until the December 2025 deadline to comply with the listing standards. During this period, Volato will undergo quarterly reviews to assess progress in line with its submitted plan. Failure to demonstrate adequate progress or to meet the compliance standards by the deadline may lead to delisting proceedings.
The acceptance of the compliance plan does not impact Volato's business operations or its reporting obligations to the U.S. Securities and Exchange Commission. However, Volato cautions that there is no guarantee it will achieve the necessary progress or regain compliance within the plan period. Furthermore, subsequent developments may negatively influence the company's ability to meet these requirements or maintain compliance with other NYSE American listing standards.
Volato specializes in private aviation, offering fractional ownership and utilizing a fleet of HondaJets for short-range travel. The company emphasizes modern and efficient solutions for air travel, supported by advanced technology.
This update is based on a press release statement from Volato Group, Inc. and does not reflect any independent analysis or endorsement of the company's future performance or the effectiveness of its compliance plan.
In other recent news, Volato Group, Inc. has entered into a significant contract with flyExclusive, Inc., designating flyExclusive as the exclusive provider of certain aircraft management services to Volato. The agreement also includes an option for flyExclusive to initiate a merger with a fully-owned subsidiary of Volato within the next twelve months. In addition, Volato Group has expanded indemnification for its directors and officers and secured a $4 million loan from TVT Capital Source LLC.
The company has also undergone a significant reconfiguration of its Board of Directors, reducing its size from seven to five members. This reshuffle includes the addition of Christopher G. Burger and Fred A. Colen, both seasoned professionals from the technology and aviation sectors. Furthermore, Volato Group has faced compliance issues with NYSE American standards, receiving a notice regarding non-compliance with the exchange's continued listing standards.
These are among the recent developments for the company, which also include the scheduling of Volato's earnings conference call for the first quarter of 2024, set to discuss the company's financial results.
InvestingPro Insights
As Volato Group, Inc. (NYSE American: SOAR) works towards meeting the NYSE American's listing standards, it's worth noting some of the financial challenges the company is facing. According to InvestingPro data, the market capitalization of Volato stands at a modest $11.55 million, reflecting the small scale of the company within the broader market. This is particularly significant given the stringent financial requirements of the exchange.
InvestingPro data also reveals a concerning revenue decline of -7.21% over the last twelve months as of Q2 2024, which may be indicative of underlying business challenges. Additionally, the company's stock has experienced a significant downturn, with a -96.34% one-year price total return, bringing the price per share to a mere $0.39.
InvestingPro Tips highlight several areas of concern for investors. The company is not only operating with a significant debt burden, but it also may have trouble making interest payments on its debt. These factors are critical to consider when evaluating the company's ability to meet the NYSE American's standards in the future. Moreover, with the stock having taken a big hit over the last week, the volatility of Volato's shares is evident and could represent a risk for potential investors.
For readers interested in a deeper dive into the company's financial health, there are additional InvestingPro Tips available at InvestingPro. These tips provide a more comprehensive analysis of Volato's financial situation and could aid in making informed investment decisions.
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