Mobiquity (NASDAQ:MOBQ) stock closed today up by 28%. What’s more, shares climbed more than 140% at one point in today’s session, touching 36 cents per share. What’s up with Mobiquity lately?
Well, given its share price, one might assume that Mobiquity’s surge is the result of a short squeeze effort on the now 19 cent per share stock. Surprisingly, however, there’s actually some merit behind today’s price jump.
This morning, Mobqiuity launched ElecAlytics, an artificial intelligence ( ) powered analytics suite specifically tailored for use in political campaigns. According to the company, ElecAlytics uses machine learning to process a number of data variables, “including districting data, voter registration and demographic details.”
“By using AI to understand voter behavior and target messages effectively, campaigns can increase their chances of success and we believe ElecTech can help political campaigns win elections,” said CEO Dean Julia.
MOBQ Stock Soars Amid Delisting Woes
Despite MOBQ stock’s price surge today, the company still has bigger fish to fry. Indeed, earlier this year, the firm received a letter from Nasdaq warning that shares traded below the $1 minimum bid price for longer than 30 consecutive business days. As such, the company has a max of 360 days to regain compliance with listing standards, or face removal from the market.
Now, while this is certainly a troubling notice, there are a number of ways for the company to get back to $1, even ignoring the possibility of a 400% surge over the next year or so. In fact, Mobiquity may simply perform a reverse stock split, essentially consolidating shares to artificially raise its stock price.
The $1 price isn’t the only regulatory concern Mobiquity is dealing with, however. Earlier this month, the company also received a delisting determination letter from Nasdaq for failing to meet the minimum $2.5 million stockholder equity requirement. This was actually a follow-up to a previous warning disclosed in November 2022.
Unfortunately, the company failed to meet the May 30 shareholder equity deadline and is facing imminent delisting. Mobiquity stated that it plans to submit a hearing request in an effort to stave off delisting, but it’s unclear whether Nasdaq will grant a hearing.
“There can be no assurance that the Company’s plan will be accepted by the Panel or that, if it is, the Company will be able to regain compliance with the applicable Nasdaq listing requirements,” the company notice reads.
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On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.