Anghami Stock Receives NASDAQ Warning Due to Low Price

Anghami Stock Receives NASDAQ Warning Due to Low Price

Regardless of scoring a $5 million funding about two months in the past, Center Jap streaming service Anghami (NASDAQ: ANGH) is going through the potential of being delisted from NASDAQ attributable to its sagging inventory value.

Abu Dhabi-based Anghami only recently introduced in a proper launch that it had obtained a written discover from the talked about inventory alternate, indicating a violation of a NASDAQ rule regarding “continued itemizing necessities.”

Mentioned violation refers particularly to Anghami’s per-share inventory value, which, as of October fifth, had been “beneath $1.00 per share for the” latter 30 enterprise days. In accordance with the corresponding rule, with the intention to commerce on NASDAQ, firms should preserve a “minimal bid value of $1 per share” and have 400 or extra “whole holders.”

Now, the previously high-flying streaming platform, shares through which peaked at about $18 apiece in early 2022, can have 180 calendar days, till April 2nd of subsequent 12 months, “to regain compliance.” As described within the Sony Music-partnered enterprise’s launch on the matter, Anghami might be cleared to stay on NASDAQ if its shares preserve a closing value of over $1 every for at the least 10 consecutive buying and selling days.

In the meantime, “ought to the state of affairs not resolve itself,” Anghami “intends to think about accessible choices to treatment the deficiency and regain compliance with the minimal bid requirement inside the compliance interval, together with by probably approving a reverse share cut up,” higher-ups signaled.

(Earlier in 2023, Anghami co-founder Elie Habib had pushed again in opposition to rumors that his firm deliberate to delist from NASDAQ in favor of creating shares accessible by way of the Abu Dhabi Securities Trade.)

On the time of this writing, Anghami inventory was price 88 cents per share, representing a six % increase from Friday’s shut however an roughly 47 % falloff from 2023’s starting. Having debuted on NASDAQ in February of 2022 as a part of a particular function acquisition firm (SPAC) merger, Anghami initially boasted an over $500 million valuation.

Backed by main Center Jap monetary gamers, the streaming platform in late June of the identical 12 months scooped up a reside occasions firm known as Highlight. Moreover, Anghami disclosed seemingly robust income and person development all through 2022.

However on the heels of a fabric stock-price slip, November of 2022 introduced with it a layoff spherical affecting 22 % of Anghami workers. Additionally in November, studies advised that Spotify was contemplating buying the MENA competitor – although the potential buyout, moreover not but coming to fruition, doesn’t seem to have been publicly mentioned by the concerned events through the previous 11 months.

Individually, Entry Industries-owned streaming service Deezer started buying and selling on the Euronext Paris in 2022 following a SPAC merger of its personal. The Paris-headquartered platform has likewise grappled with subscriber and stock-price woes within the interim; shares had been price €2.64 every when the market closed in the present day.

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