It’s wanting more and more sure that MENA-focused music streaming service Anghami might be delisted from The Nasdaq International Market – as early as later this week.
On October 24, 2023, Anghami acquired a willpower letter from the Nasdaq stating that it was not in compliance with Nasdaq Itemizing Rule 5450(b)(2)(A), which requires corporations to take care of a minimal market worth of listed securities of $50 million for continued itemizing on The Nasdaq International Market.
Anghami’s receipt of this ‘delist willpower letter’ was revealed by the corporate in an SEC submitting on Monday (October 30).
In response to Anghami, the letter said that until the corporate requests a listening to earlier than a Nasdaq Itemizing {Qualifications} Panel, buying and selling within the firm’s inventory on The Nasdaq International Market might be suspended on the opening of enterprise on November 2, 2023. That’s Thursday this week.
The corporate had till right this moment (October 31) to request a listening to.
The event arrived simply 18 months after Anghami listed on the Nasdaq (in February 2022) after finishing a SPAC merger with Vistas Media Acquisition Firm (VMAC) that valued Anghami at $220 million.
On the time of writing, Anghami’s market cap worth is $20.91 million {dollars} – round a tenth of its worth simply 18 months in the past (see beneath).
Anghami stated in its SEC submitting yesterday that its “continued itemizing on Nasdaq stays a key precedence” and that, “accordingly, the corporate intends to request in a well timed method a listening to earlier than the Panel, at which it should search continued itemizing pending its return to compliance with the itemizing necessities on both The Nasdaq International Market or The Nasdaq Capital Market”.
The submitting added that Anghami’s listening to request “will keep the suspension of buying and selling and delisting of the corporate’s atypical shares pending the conclusion of the listening to course of” and that “consequently, the corporate’s atypical shares will stay listed on The Nasdaq International Market no less than till the Panel renders a choice following the listening to”.
Another choice defined inside Monday’s announcement is that “within the occasion that the Panel determines” that Anghami’s “continued itemizing on The Nasdaq International Market is not warranted,” the music streaming firm could then “search to switch the itemizing of its atypical shares to The Nasdaq Capital Market”.
As defined right here, the Nasdaq Inventory Market has three distinctive tiers, together with The Nasdaq International Choose Market, The Nasdaq International Market (on which Anghami is presently listed) and The Nasdaq Capital Market.
“There could be no assurance that the panel will grant the corporate’s request for continued itemizing on The Nasdaq International Market or a switch of its itemizing to The Nasdaq Capital Market.”
Anghami, in assertion issued by way of the SEC on Monday
In response to Nasdaq, “The preliminary monetary and liquidity necessities for the Nasdaq International Choose Market are extra stringent than these for the Nasdaq International Market and likewise, the preliminary itemizing necessities for the Nasdaq International Market are extra stringent than these for the Nasdaq Capital Market”.
Angahmi pressured in Monday’s submitting that “there could be no assurance that the panel will grant the corporate’s request for continued itemizing on The Nasdaq International Market or a switch of its itemizing to The Nasdaq Capital Market“.
This newest hurdle in Anghami’s 18-month inventory market journey arrives simply two weeks after the Abu Dhabi-headquartered firm acquired a warning from the Nasdaq that it was in violation of one other Nasdaq itemizing rule as a result of its inventory value was too low.
In response to Nasdaq Rule 5450(a)(1), companies should preserve a minimal share value of USD $1.
If the worth falls beneath that stage for 30 consecutive days, the trade can launch a assessment of the listed firm that can lead to delisting.
Below these guidelines, following the notification, Anghami was given 180 days to regain compliance.
If its share value closes above $1 for 10 consecutive days throughout that interval, the Nasdaq will contemplate the matter closed, Anghami stated in its submitting to the SEC on October 12.
On the time of writing, Anghami’s shares are buying and selling at $0.85.
Center East and North Africa Centered Anghami is a specialist in Arabic content material, claiming to be the primary music-streaming platform within the MENA area.
Launched in 2012, Anghami has 120 million registered customers and – as of the time of the corporate’s full-year 2022 report – 1.52 million paying subscribers.
In its 2022 earnings launch in Could, the corporate reported a 35.6% YoY improve in income, to a complete of $48.1 million. Complete paying subscribers grew by 21% YoY.
In August Anghami acquired a $5 million funding from SRMG Ventures, the enterprise capital arm of Saudi Analysis and Media Group (SRMG), which calls itself the “largest built-in media group in MENA.”Music Enterprise Worldwide
