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HomeStartupsAfter Failed Ebix Merger, Yatra Could Now Face Nasdaq Delisting

After Failed Ebix Merger, Yatra Could Now Face Nasdaq Delisting


Yatra has introduced its public providing of $11.5 Mn in June 2020

It was not in a position to keep a minimal closing bid worth for 30 consecutive days

Nasdaq has given Yatra 180 days to regain compliance

Final Friday (July 31, 2020), Gurugram and New York-based on-line journey aggregator Yatra obtained a letter from the Nasdaq inventory market notifying the corporate has not maintained a minimal closing bid worth of $1 per share for the previous 30 enterprise days. 

In response to Nasdaq itemizing guidelines, listed firms must adjust to a minimal bid worth of $1 per share. If an organization fails to take care of this minimal bid worth requirement for 30 consecutive enterprise days, a notification letter is issued to the corporate as within the case of Yatra.

Yatra is now given an preliminary interval of 180 calendar days (until January 25, 2021) to regain compliance with the minimal bid worth requirement. If Yatra’s extraordinary shares shut at $1 or extra for a minimum of 10 consecutive enterprise days earlier than January 25, then the corporate can be thought-about compliant with the minimal bid worth requirement and the shares will proceed to be eligible for itemizing on the Nasdaq capital market. 

Submit this preliminary 180 days interval, there is no such thing as a assure whether or not the corporate can be thought-about for a further 180 day compliance interval or not. If Nasdaq decides to not present such a further compliance interval, then Yatra’s extraordinary shares can be topic to delisting. 

Yatra has introduced the closing of its underwritten public providing of $11.5 Mn within the final week of June 2020. The corporate had provided 14,375,000 of its extraordinary shares at a public providing worth of $0.80 per share. Yatra had meant to make use of the web proceeds from this providing for basic company and enterprise functions.

Simply weeks earlier than the general public itemizing announcement, Yatra canceled its ongoing merger with Ebix. The corporate additionally filed a plea in search of ‘substantial’ damages for Ebix’s alleged breach of deal phrases. In 2019, Ebix had agreed to purchase Yatra at an enterprise worth of $337.eight Mn.

In June, Yatra has additionally stated that it’s in a robust monetary situation to climate the Covid-19 storm. The corporate reported its complete out there liquidity to be at $32.5 Mn (as of June 4, 2020), whereas its month-to-month run-rate working mounted value was roughly $1.2 Mn. Which means that the corporate claimed to have sufficient runway to final for a minimum of 26 months.  

To realize this monetary stability, Yatra had applied sure cost-saving measures beginning in April, together with wage cuts by half and freezing wage hikes. 

Based in August 2006 by Sabina Chopra, Manish Amin and Dhruv Shringi, Yatra offers a full vary of travel-related companies similar to home and worldwide air ticketing, resort reserving, homestays, vacation packages, bus ticketing, rail ticketing, actions, points of interest, and ancillary companies.




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