Marpai (NASDAQ:MRAI) stock is taking a beating on Tuesday as investors prepare for the company’s shares to be delisted tomorrow.
Marpai alerted investors that it is withdrawing from a hearing with Nasdaq Exchange officials. At the start of trading on Wednesday, shares of MRAI stock will be delisted from the Nasdaq Capital Market.
The company is planning to transfer its shares to the OTCQX Market after the delisting. Marpai notes that it will continue to be required to file periodic earnings and financial data with the Securities and Exchange Commission (SEC) even after delisting.
Marpai says that the delisting will allow the company to preserve cash. This is part of its plan for profitable growth.
What’s Behind the MRAI Stock Delisting?
Marpai notes that its shares were facing delisting from the Nasdaq Exchange due to its being below the minimum stockholders’ equity requirement. It won’t have to worry about this type of requirement after switching to the OTCQX Market. The shares will also still trade under the MRAI stock ticker.
MRAI stock was down 41.1% as of Tuesday morning. Some 70,000 shares traded, compared to a daily average of 419,000 shares.
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On the date of publication, William White did not have (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.
