Air T (AIRT) Faces Nasdaq Delisting Warning Over Bid Price
Ticker: AIRTP · Form: 8-K · Filed: Feb 22, 2024 · CIK: 353184
Sentiment: bearish
Topics: delisting-notice, listing-compliance, stock-price
TL;DR
**AIRT got a Nasdaq delisting warning for its stock price being too low, has until August 13, 2024, to fix it.**
AI Summary
Air T, Inc. (AIRT) received a notice from Nasdaq on February 15, 2024, indicating that it no longer meets the minimum bid price requirement of $1.00 per share for continued listing. The company has 180 calendar days, until August 13, 2024, to regain compliance. If it fails to do so, it may be eligible for an additional 180-day period.
Why It Matters
This notice puts Air T's stock at risk of delisting from Nasdaq, which could reduce its liquidity and investor appeal, potentially impacting its ability to raise capital.
Risk Assessment
Risk Level: high — The company faces potential delisting from Nasdaq, which is a significant risk to its market presence and investor confidence.
Key Numbers
- $1.00 — Minimum Bid Price (Nasdaq's required minimum bid price per share)
- 180 days — Compliance Period (Initial period to regain compliance with Nasdaq listing rules)
Key Players & Entities
- Air T, Inc. (company) — filer of the 8-K and recipient of the Nasdaq notice
- Nasdaq (company) — stock exchange that issued the delisting notice
- $1.00 (dollar_amount) — minimum bid price requirement
- February 15, 2024 (date) — date of the earliest event reported and receipt of the Nasdaq notice
- August 13, 2024 (date) — deadline for Air T to regain compliance with Nasdaq's bid price rule
FAQ
What is the primary reason Air T, Inc. received a notice from Nasdaq?
Air T, Inc. received a notice because its common stock failed to maintain a minimum bid price of $1.00 per share for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
When did Air T, Inc. receive the notice from Nasdaq?
Air T, Inc. received the notice from Nasdaq on February 15, 2024.
What is the deadline for Air T, Inc. to regain compliance with Nasdaq's minimum bid price rule?
Air T, Inc. has until August 13, 2024, which is 180 calendar days from the notice date, to regain compliance.
What happens if Air T, Inc. does not regain compliance by the initial deadline?
If Air T, Inc. does not regain compliance by August 13, 2024, it may be eligible for an additional 180-day compliance period if it meets other listing requirements.
What Nasdaq Listing Rule did Air T, Inc. violate?
Air T, Inc. violated Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share.
Filing Stats: 771 words · 3 min read · ~3 pages · Grade level 13.1 · Accepted 2024-02-22 16:05:02
Key Financial Figures
- $10,000,000 — intain stockholders' equity of at least $10,000,000 (the "Stockholders' Equity Requirement"
Filing Documents
- tm246752d1_8k.htm (8-K) — 30KB
- 0001104659-24-026526.txt ( ) — 241KB
- airt-20240215.xsd (EX-101.SCH) — 4KB
- airt-20240215_def.xml (EX-101.DEF) — 26KB
- airt-20240215_lab.xml (EX-101.LAB) — 36KB
- airt-20240215_pre.xml (EX-101.PRE) — 25KB
- tm246752d1_8k_htm.xml (XML) — 5KB
01 Notice of Delisting or Failure
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing On February 15, 2024, Air T, Inc. (the "Company") received a deficiency letter (the "Letter") from the Listing Qualifications Department (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it is not in compliance with the minimum stockholders' equity requirement for continued listing set forth in Nasdaq Listing Rule 5450(b)(1)(A). Nasdaq Listing Rule 5450(b)(1)(A) requires listed companies to maintain stockholders' equity of at least $10,000,000 (the "Stockholders' Equity Requirement"). The Company has identified its history of stock buybacks as a significant contributing cause, given the direct impact stock buybacks have on stockholders' equity. The Staff further indicated that, as of the date of the Letter, the Company did not comply with certain requirements under the alternative standards set forth in Nasdaq Listing Rules 5450(b)(2) and 5450(b)(3) for continued listing on the Nasdaq Global Select Market. Specifically, the Staff identified that the Company does not meet the alternative standard requiring a certain minimum number of publicly (i.e. non-insider) held shares. This is also directly linked to the Company's history of stock buybacks, given Company insiders do not participate in such buybacks by selling their shares to the Company. Subsequently, the number of publicly held shares shrinks 1:1 each time the Company buys back its stock. The Letter has no immediate effect on the listing of the Company's common stock, and its common stock will continue to trade on The Nasdaq Global Select Market under the symbol "AIRT" at this time. In accordance with Nasdaq Listing Rule 5810(c)(2), the Company has been provided 45 calendar days, or until April 1, 2024, to submit a plan to regain compliance (the "Compliance Plan"). If the Compliance Plan is acceptable to the Staff, of which there can be no assurance, they may grant a
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: February 22, 2024 AIR T, INC. By: /s/ Brian Ochocki Brian Ochocki, Chief Financial Officer