Mountain Crest Acquisition (NASDAQ:PLBY) Corp. V, a special purpose acquisition company (SPAC), is set to be delisted from the Nasdaq Stock Market LLC, as it did not meet the exchange's listing requirements. The SPAC, which focuses on identifying a merger target within the real estate and construction sector, was notified on Thursday that it failed to complete a business combination within the 36-month deadline following its initial public offering (IPO).
The company's IPO registration statement became effective on November 12, 2021. According to Nasdaq's rules for SPACs, Mountain Crest was required to execute a business combination by November 12, 2024. The failure to do so means the company's securities, including its common stock, rights, and units, are now subject to delisting procedures.
Mountain Crest has chosen not to appeal the decision, and as a result, trading of its securities on Nasdaq will be suspended at the opening of business on November 21, 2024. Following the suspension, a Form 25-NSE will be filed with the Securities and Exchange Commission (SEC), which will formally remove the company's securities from listing and registration on the Nasdaq.
The company anticipates that its securities will begin trading on the over-the-counter market from November 21, 2024, the same day they are suspended from Nasdaq. This transition allows current shareholders and potential investors to continue trading the company's securities, although on a less regulated market platform.
In other recent news, Mountain Crest Acquisition Corp. V has reported significant developments. The company has received approval from stockholders to extend the deadline for an initial business combination by over a year to November 16, 2025, a strategic adjustment documented in Amendment No. 4 of the company's charter. Additionally, Nelson Haight was re-elected to the board of directors, and UHY LLP was ratified as the independent accounting firm for the fiscal year ending December 31, 2024.
The company has also addressed its prior non-compliance with Nasdaq Listing Rule 5250(c)(1), submitting overdue annual and quarterly reports and regaining compliance. Mountain Crest Acquisition Corp. V has further secured a financial agreement with its sponsor, Mountain Crest Global Holdings LLC, involving the issuance of an unsecured promissory note valued at up to $500,000.
InvestingPro Insights
As Mountain Crest Acquisition Corp. V (MCAG) faces delisting from Nasdaq, InvestingPro data provides additional context to the company's financial situation. The company's market capitalization stands at $37.58 million, reflecting its small-cap status. MCAG's stock is currently trading at 98.52% of its 52-week high, with a price of $11.32 as of the previous close. This aligns with an InvestingPro Tip indicating that the stock is trading near its 52-week high, despite the impending delisting.
InvestingPro Tips also reveal that MCAG is not profitable over the last twelve months and suffers from weak gross profit margins. This is corroborated by the negative operating income of -$0.56 million for the last twelve months as of Q3 2024. The company's financial challenges are further emphasized by its negative return on assets of -5.0%.
For investors considering the transition to over-the-counter trading, it's worth noting that MCAG generally trades with low price volatility, according to another InvestingPro Tip. This could provide some stability as the stock moves to a less regulated market.
InvestingPro offers 7 additional tips for MCAG, which could be valuable for investors navigating this transition. To access these insights and more detailed analysis, consider exploring the full range of data available on InvestingPro.
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