Advanced Health Intelligence to Appeal Nasdaq Delisting Decision
AHI (AHI) Share Update August 2024 Thursday 1st
Advanced Health Intelligence Faces Nasdaq Delisting Amid Financial Improvements
Advanced Health Intelligence Ltd (ASX/NASDAQ: AHI) has announced plans to appeal a Nasdaq decision to delist the company due to a shareholder equity deficiency. The company has reported significant financial improvements that they believe will support their appeal.
Instant Summary:
- Nasdaq decided to delist AHI due to shareholder equity deficiency.
- AHI has improved its financial position, exceeding the minimum net shareholder equity requirement.
- The delisting decision only affects AHI's secondary listing on Nasdaq, not its primary ASX listing.
- AHI will appeal the decision by 9 August 2024.
- The company's financial improvements include reduced overheads, increased asset value, and better recent financial results.
Nasdaq Delisting Decision
On 8 November 2023, Advanced Health Intelligence Ltd (AHI) received a deficiency notification from Nasdaq, indicating non-compliance with the Nasdaq Listing Rule 5550(b). The rule requires a minimum of USD $2.5 million in net shareholders' equity, USD $35 million market value of listed securities, or USD $500,000 net income from continuing operations.
Despite presenting a compliance plan on 20 June 2024, Nasdaq decided to delist AHI's securities effective 30 July 2024. This decision only impacts AHI's secondary listing on Nasdaq and does not affect its primary listing on the Australian Securities Exchange (ASX).
Financial Improvements
Following the hearing, AHI has reported significant improvements in its financial position for the year ending 30 June 2024. The company has reduced overheads, increased asset value, and achieved more favorable financial results in recent periods. As a result, AHI now exceeds the minimum net shareholder equity requirement of USD $2.5 million.
Although these financial improvements are currently unaudited, they provide a stronger foundation for AHI to appeal the delisting decision. The company plans to exercise its right to appeal by 9 August 2024 and is hopeful that the Nasdaq panel will view their improved financial standing favorably.
Next Steps and Appeal
The Listing Council has the discretion to review the Panel's decision within 45 calendar days, potentially by 9 September 2024. AHI remains confident in its ability to present a compelling case to the Nasdaq Hearing Panel, supported by substantial reductions in operating costs, additional equity from private placements, and increased asset value over the past year.
AHI will continue to keep shareholders informed of any developments as they become available.
The potential delisting from Nasdaq could negatively impact AHI's stock price, especially in the short term. However, the company's improved financial position and proactive appeal may mitigate some of these effects. Investors should closely monitor the appeal process and any further announcements from AHI.
Investor Reaction:
Analysts are likely to have mixed reactions to the news. While the delisting decision is concerning, AHI's improved financial standing and proactive approach to appealing the decision may provide some reassurance. Investors will be keen to see how the appeal process unfolds and whether AHI can maintain its compliance with Nasdaq requirements.
Conclusion:
Investors should stay informed about AHI's appeal process and monitor any further financial updates from the company. The outcome of the appeal will be crucial in determining the future of AHI's Nasdaq listing and its impact on the company's stock performance.