Reported Late Thursday April 6, Evo Acquisition Corp. Receives Nasdaq Notifications Regarding Market Value Of Listed Securities And Public Float Was Below The Minimum Of $35M Required For Continued Listing
Evo Acquisition Corp. (the "Company") (NASDAQ:EVOJ) announced that on April 3, 2023, it received a letter (the "MVLS Notice") from the listing qualifications department staff of The Nasdaq Stock Market ("Nasdaq") notifying the Company that for the last 30 consecutive business days, the Company's Market Value of Listed Securities ("MVLS") was below the minimum of $35 million required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(b)(2) (the "Market Value Standard").
In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company has 180 calendar days, or until October 2, 2023, to regain compliance. The MVLS Notice states that to regain compliance, the Company's MVLS must close at $35 million or more for a minimum of ten consecutive business days during the compliance period ending October 2, 2023, at which time Nasdaq will provide written notification that the Company has achieved compliance under the Market Value Standard and the matter will be closed.
On April 5, 2023, the Company received another letter (the "Public Float Notice") from Nasdaq notifying the Company that the Company no longer meets the minimum 500,000 publicly held shares required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(4) (the "Public Float Standard"). The Public Float Notice states that the Company has until May 22, 2023 to provide Nasdaq with a specific plan to achieve and sustain compliance with all The Nasdaq Capital Market listing requirements, including the time frame for completion of this plan. If Nasdaq does not accept the Company's plan, the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel.
The MVLS Notice and the Public Float Notice have no immediate effect on the listing of the Company's securities, and the Company's securities continue to trade on The Nasdaq Capital Market.
The Company intends to actively monitor its MVLS, provide Nasdaq prior to May 22, 2023 with the Company's plan to meet the Public Float Standard, and will evaluate available options to regain compliance with the Nasdaq continued listing standards, including potential arrangements to be made in connection with the Company's definitive business combination agreement with 20Cube Logistics Pte. Ltd. announced by the Company on October 18, 2022. However, there can be no assurance that the Company will be able to regain compliance under the Market Value Standard and the Public Float Standard, or will otherwise be in compliance with other Nasdaq listing criteria.
The Company's amended and restated certificate of incorporation, as amended, provides that the Company may, on a month to month basis, extend the deadline date for the Company to consummate a business combination. The final deadline date is August 8, 2023, although the Company may determine, in its discretion, to seek a further extension of the deadline date. In the event the Company seeks and obtains a further extension beyond October 2, 2023, but does not regain compliance by such date, then Nasdaq will notify the Company that its securities are subject to delisting. At that time, the Company may appeal the delisting determination to a Nasdaq Hearings Panel.