Jet.AI meets minimum equity requirement for Nasdaq listing
Private aviation and AI solutions provider Jet.AI expressed confidence in regaining compliance with the Nasdaq stock exchange’s minimum stockholders’ equity requirement.
“We appreciate the consideration NASDAQ has shown Jet.AI. The Company has strong cash ($3.6m) and book equity ($4m) positions, with no debt, roughly 840 thousand shares and good visibility on aircraft deliveries. Today is an important day for Jet.AI in its continued mission to build shareholder value and we thank all those who have contributed to our return to compliance,” said Mike Winston, chairman and CEO, Jet.AI.
The company was notified in December 2023 that it’s stockholder equity (difference between its assets and liabilities) fell below the previously mandated $10m. This shortfall could have led to delisting from Nasdaq.
To meet the Nasdaq requirement, Jet.AI undertook several significant financial transactions including raising over $4m through the issuance of new shares of common stock to various institutional investors. These transactions, including deals with GEM Yield and Ionic Ventures, improved the company’s equity position.
Moreover, it also resolved outstanding debts worth over $2.4m by issuing shares of common stock to creditors, primarily Sunpeak Holdings Corporation.
In addition, Jet.AI entered into an agreement with Maxim Group, LLC, to facilitate the sale of additional shares of common stock. This ongoing effort, with a potential gross sales price of up to $5.4m, can provide further capital infusion and support the company’s financial position.
As a result of these actions, Jet.AI believes their stockholders’ equity now sits at approximately $4.0m, exceeding the $2.5m minimum and potentially achieving compliance with Nasdaq listing requirements.
Jet.AI was initially granted six months in December 2023 to rectify the issue. However, they ultimately transferred their listing to the Nasdaq Capital Market, a less stringent exchange tier, and received an extension until November 26th, 2024.
The new minimum requirement for the Capital Market was $2.5m.
