LOS ANGELES - Surf Air Mobility Inc. (NYSE:SRFM), a company specializing in regional air mobility, has been notified by the New York Stock Exchange (NYSE) of its non-compliance with the exchange's continued listing standards.
The notification, received on April 2, 2024, indicates that Surf Air's average closing stock price was below the required minimum of $1.00 over a consecutive 30 trading-day period.
Despite this development, there will be no immediate effect on the trading of Surf Air's common stock, which will remain listed on the NYSE while the company works to meet the exchange's standards. Surf Air has a six-month period to address the issue and plans to notify the NYSE of its intent to regain compliance within the next 10 business days.
To rectify the stock price deficiency, Surf Air is considering several options, including a potential reverse stock split, which would require approval from its shareholders at the next annual meeting. If the company chooses to take such action and the stock price subsequently exceeds $1.00 for a minimum of 30 trading days, the NYSE will consider the compliance issue resolved.
Surf Air's business operations and SEC reporting obligations are expected to continue without interruption due to this notice.
Based in Los Angeles, Surf Air Mobility operates the largest commuter airline in the U.S. and is working on powertrain technology development with commercial partners to electrify existing aircraft fleets. This initiative aims to reduce both the cost and environmental impact of flying.
The company's forward-looking statements in the press release reflect the management's beliefs and assumptions but are subject to various risks and uncertainties, including the success of their plans to regain NYSE compliance and the development of their electrification technology, which has yet to receive regulatory approval.
The information in this article is based on a press release statement from Surf Air Mobility Inc.
InvestingPro Insights
Surf Air Mobility Inc. (NYSE:SRFM) currently faces challenges beyond compliance with the NYSE's minimum stock price requirement. The company has a market capitalization of only $74.36M, reflecting investor concerns about its financial health and future prospects. One of the most pressing issues is the company's significant debt burden, which raises questions about its ability to make interest payments on the debt, as indicated by InvestingPro Tips.
This is particularly concerning given the company's negative gross profit margin of -2.34% over the last twelve months as of Q1 2023, which suggests that Surf Air is not only unprofitable but also struggles to cover its basic operational costs.
Despite these challenges, Surf Air has experienced a significant return over the last week, with a 9.21% price total return, which could be a sign of investor optimism or market volatility, as the stock generally trades with high price volatility. Still, it is important to note that the company's stock price has fallen by 70.77% over the past year, indicating a longer-term negative trend.
Investors interested in a deeper dive into Surf Air's financials and future outlook may find value in the 15 additional InvestingPro Tips available on InvestingPro. For those considering an InvestingPro subscription, use coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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