Capitalworks SPAC Faces Nasdaq Delisting Notice
Ticker: CMCAW · Form: 8-K · Filed: Jun 11, 2024 · CIK: 1865248
| Field | Detail |
|---|---|
| Company | Capitalworks Emerging Markets Acquisition Corp (CMCAW) |
| Form Type | 8-K |
| Filed Date | Jun 11, 2024 |
| Risk Level | high |
| Pages | 3 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.0001, $11.50, $5,000 |
| Sentiment | bearish |
Sentiment: bearish
Topics: delisting, spac, compliance
TL;DR
Nasdaq is threatening to delist Capitalworks SPAC; they have 30 days to fix it.
AI Summary
Capitalworks Emerging Markets Acquisition Corp. announced on June 10, 2024, that it has received a notice from the Nasdaq Stock Market indicating a failure to meet continued listing requirements. The company is a "blank check" company, also known as a special purpose acquisition company (SPAC), and has until July 10, 2024, to submit a plan to regain compliance.
Why It Matters
This notice suggests potential financial distress or a lack of progress in finding a suitable acquisition target for the SPAC, which could impact investor confidence and the value of its shares.
Risk Assessment
Risk Level: high — Receiving a delisting notice from a major stock exchange like Nasdaq indicates significant non-compliance with listing rules, posing a substantial risk to the company's continued trading status.
Key Numbers
- 30 days — Compliance Period (The timeframe given by Nasdaq to submit a plan to regain listing compliance.)
Key Players & Entities
- Capitalworks Emerging Markets Acquisition Corp. (company) — The company filing the 8-K and receiving the delisting notice.
- Nasdaq Stock Market (company) — The exchange that issued the notice of non-compliance.
- June 10, 2024 (date) — The date the notice was received.
- July 10, 2024 (date) — The deadline for the company to submit a compliance plan.
FAQ
What specific listing rule(s) did Capitalworks Emerging Markets Acquisition Corp. fail to meet?
The filing states the company received a notice indicating a failure to meet the continued listing requirements of the Nasdaq Stock Market, but does not specify which particular rules were violated.
What is the deadline for Capitalworks to submit a compliance plan?
Capitalworks Emerging Markets Acquisition Corp. has until July 10, 2024, to submit a plan to regain compliance with Nasdaq's listing requirements.
What type of company is Capitalworks Emerging Markets Acquisition Corp.?
It is a "blank check" company, also known as a special purpose acquisition company (SPAC).
What is the business address of Capitalworks Emerging Markets Acquisition Corp.?
The business address is C/O CAPITALWORKS EMERGING MARKETS ACQUIS, 1345 AVENUE OF THE AMERICAS, 11TH FL., NEW YORK, NY 10105.
What action is Nasdaq taking regarding Capitalworks Emerging Markets Acquisition Corp.?
Nasdaq has issued a notice of delisting or failure to satisfy a continued listing rule or standard.
Filing Stats: 856 words · 3 min read · ~3 pages · Grade level 15.7 · Accepted 2024-06-11 17:09:59
Key Financial Figures
- $0.0001 — f one Class A ordinary share, par value $0.0001 per share, and one-half of one redeemab
- $11.50 — ordinary share at an exercise price of $11.50 per share CMCAW The Nasdaq Stock Ma
- $5,000 — to the Nasdaq Capital Market and paid a $5,000 application fee. Nasdaq indicated that
Filing Documents
- tm2416994d1_8k.htm (8-K) — 34KB
- 0001104659-24-070461.txt ( ) — 273KB
- cmca-20240610.xsd (EX-101.SCH) — 4KB
- cmca-20240610_def.xml (EX-101.DEF) — 29KB
- cmca-20240610_lab.xml (EX-101.LAB) — 38KB
- cmca-20240610_pre.xml (EX-101.PRE) — 27KB
- tm2416994d1_8k_htm.xml (XML) — 9KB
01 Notice of Delisting or Failure to
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On June 10, 2024, The Nasdaq Stock Market LLC ("Nasdaq") notified Capitalworks Emerging Markets Acquisition Corp. (the "Company") that the Nasdaq Hearings Panel (the "Panel") has determined to delist the Company's units, Class A ordinary shares and warrants and that trading of the Company's securities will be suspended at the open of trading on June 12, 2024. As previously reported, on September 7, 2023, the Company received a written notice from the Nasdaq Listing Qualifications Department indicating that the Company was not in compliance with Nasdaq Listing Rule 5450(a)(2), which requires the Company to maintain at least 400 total holders for continued listing on the Nasdaq Global Market (the "Minimum Total Holders Rule"). Pursuant to Nasdaq Listing Rule 5810(c)(2)(B)(i), the maximum amount of time for the Company to regain compliance with the Minimum Total Holders Rule was 180 days, or until March 5, 2024 (the "Extension Period"). On March 15, 2024, the Company submitted an application to transfer its securities to the Nasdaq Capital Market and paid a $5,000 application fee. Nasdaq indicated that the Company does not currently meet the 300 public holder requirement for continued listing on the Nasdaq Capital Market. On April 18, 2024, the Company received a notice (the "Notice") from Nasdaq indicating that the Company did not regain compliance with the Minimum Total Holders Rule during the Extension Period. Pursuant to the Notice, unless the Company requested a hearing before the Panel by April 25, 2024, the Company's securities would be subject to suspension and delisting from the Nasdaq Global Market at the opening of business on April 29, 2024, and a Form 25-NSE will be filed with the Securities and Exchange Commission (the "SEC"), which will remove the Company's securities from listing and registration on Nasdaq. The Company timely requested the h