In a significant move, Movella (NASDAQ: MVLA) has initiated the process to delist its shares and warrants from the Nasdaq Stock Market. The tech company filed a Form 25 with the SEC today, signaling its voluntary withdrawal of its common stock and warrants, with the latter being exercisable at $11.50 per share.
Trading of Movella's securities is set to be suspended tomorrow, Tuesday, before the market opens. The delisting is expected to be finalized ten days after the Form 25 filing, removing the company's securities from Nasdaq. Following the delisting, Movella anticipates any subsequent trading of its securities to occur through private sales or potentially on over-the-counter (OTC) markets.
Movella is preparing to have its securities quoted on an OTC market operated by OTC Markets Group Inc., with the transition likely to happen around or after April 12. This move would ensure the continued availability of a trading platform for the company's securities. Still, there is no guarantee that brokers will maintain a market for Movella's securities or that trading will persist on the OTC market or any other form.
This strategic shift comes as part of Movella's previously announced plans to transition away from Nasdaq. The company has not publicly detailed the reasons behind the delisting decision, nor has it speculated on the potential impacts this move may have on its market presence or investor relations.
Investors and market watchers will be closely monitoring Movella's transition to the OTC markets and the subsequent trading activity. The information disclosed is based on the company's recent SEC filing.
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