Sidus Space, a Space-as-a-Service company, has been granted an additional 180 days to regain compliance with The NASDAQ Stock Market. The deadline for compliance has now been extended until March 11, 2024.
Unlike many other space companies that went public through SPAC mergers during the pandemic, Sidus Space chose to go public through a standard-issue IPO in January 2022. The IPO generated $15 million for the company by creating 3 million new shares worth $5 each on the NASDAQ.
NASDAQ has a requirement that its listed stocks must have a minimum initial bid price of $5 per share and must then maintain a value at or above $1.00. Currently, the shares of Sidus Space are trading at 15 cents each.
Sidus Space received a notification letter from NASDAQ on Tuesday. While the company has not yet regained compliance with the Minimum Bid Price Requirement, NASDAQ has determined that Sidus Space is eligible for a Second Compliance Period.
During this Second Compliance Period, if the closing bid price of Sidus Space’s Class A common stock reaches at least $1 per share for a minimum of 10 consecutive business days, NASDAQ will confirm the company’s compliance in writing. However, if compliance cannot be demonstrated by March 11, 2024, NASDAQ will provide written notification of the delisting of Sidus Space’s Class A common stock. At that point, the company will have the option to appeal NASDAQ’s determination to a Hearings Panel.
In response to this situation, Sidus Space announced that it will actively monitor the closing bid price of its Class A common stock. If necessary, the company intends to explore available options to regain compliance with the minimum bid price required by the Nasdaq Listing Rules.