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Maquia Capital Acquisition (MAQCU) faces delisting from Nasdaq due to non-compliance with listing rules. The company failed to complete a business combination within the required 36-month period following its IPO. Despite initially receiving an extension and entering a Business Combination Agreement with Velocium, Inc., Nasdaq’s Panel decided to delist MAQCU’s securities. Trading suspension began on July 31, 2024. The company has requested reconsideration and plans to appeal to the Nasdaq Listing and Hearing Review Council. Meanwhile, MAQCU has applied to list on the OTCQX with the same ticker symbols, aiming to maintain trading accessibility for its securities.
Maquia Capital Acquisition (MAQCU) rischia di essere esclusa dal Nasdaq a causa di violazioni delle norme di quotazione. L’azienda non è riuscita a completare una combinazione aziendale entro il periodo richiesto di 36 mesi dopo la sua IPO. Nonostante avesse inizialmente ricevuto un’estensione e avesse firmato un Accordo di Combinazione Aziendale con Velocium, Inc., il Comitato del Nasdaq ha deciso di delistare i titoli di MAQCU. La sospensione del trading è iniziata il 31 luglio 2024. L’azienda ha richiesto una revisione della decisione e intende presentare ricorso al Nasdaq Listing and Hearing Review Council. Nel frattempo, MAQCU ha fatto domanda per essere quotata sull’OTCQX con gli stessi simboli ticker, con l’obiettivo di mantenere l’accessibilità al commercio dei suoi titoli.
Maquia Capital Acquisition (MAQCU) enfrenta una posible exclusión de Nasdaq debido al incumplimiento de las normas de cotización. La empresa no logró completar una combinación de negocios dentro del plazo requerido de 36 meses tras su IPO. A pesar de haber recibido inicialmente una extensión e ingresar en un Acuerdo de Combinación de Negocios con Velocium, Inc., el Panel de Nasdaq decidió excluir los valores de MAQCU. La suspensión del comercio comenzó el 31 de julio de 2024. La empresa ha solicitado reconsideración y planea apelar al Consejo de Revisión de Cotizaciones y Audiencias de Nasdaq. Mientras tanto, MAQCU ha solicitado la cotización en el OTCQX con los mismos símbolos ticker, con el objetivo de mantener el acceso al comercio de sus valores.
마키아 캐피탈 인수(MAQCU)는 상장 규정 위반으로 인해 나스닥에서 상장 폐지 위기에 직면해 있습니다. 이 회사는 IPO 이후 36개월 이내에 사업 결합을 완료하지 못했습니다. 초기에는 연장을 받았고 Velocium, Inc.와 사업 결합 계약을 체결했지만, 나스닥 패널이 MAQCU의 증권 상장 폐지를 결정했습니다. 거래 중단은 2024년 7월 31일부터 시작됩니다. 회사는 재고려를 요청했으며 나스닥 상장 및 청문회 심사 위원회에 항소할 계획입니다. 이와 동시에 MAQCU는 동일한 티커 심볼로 OTCQX에 상장 신청을 하여 증권 거래 접근성을 유지하려 하고 있습니다.
Maquia Capital Acquisition (MAQCU) risque d’être radiée du Nasdaq en raison d’un non-respect des règles de cotation. L’entreprise n’a pas réussi à finaliser une combinaison d’entreprises dans la période requise de 36 mois suivant son IPO. Malgré une extension initiale et l’entrée dans un Accord de combinaison d’entreprises avec Velocium, Inc., le panel du Nasdaq a décidé de radier les titres de MAQCU. La suspension de la négociation a commencé le 31 juillet 2024. L’entreprise a demandé une réévaluation et prévoit de faire appel au Nasdaq Listing and Hearing Review Council. Pendant ce temps, MAQCU a demandé à être cotée sur l’OTCQX avec les mêmes symboles boursiers, visant à maintenir l’accessibilité à la négociation de ses titres.
Maquia Capital Acquisition (MAQCU) droht die Delistierung von Nasdaq aufgrund der Nichteinhaltung der Zulassungsregeln. Das Unternehmen konnte innerhalb des geforderten Zeitraums von 36 Monaten nach seinem IPO keine Unternehmenszusammenführung abschließen. Obwohl zunächst eine Verlängerung genehmigt wurde und ein Unternehmenszusammenführungsvertrag mit Velocium, Inc. abgeschlossen wurde, entschied das Nasdaq-Gremium, die Wertpapiere von MAQCU zu delistieren. Der Handelsstopp begann am 31. Juli 2024. Das Unternehmen hat eine Neubewertung beantragt und plant, beim Nasdaq Listing and Hearing Review Council Berufung einzulegen. In der Zwischenzeit hat MAQCU einen Antrag auf Listung im OTCQX mit denselben Tickersymbolen gestellt, um den Handel mit seinen Wertpapieren aufrechtzuerhalten.
Positive
- Applied for listing on OTCQX to maintain trading accessibility
- Executed a Business Combination Agreement with Velocium, Inc.
Negative
- Delisted from Nasdaq due to non-compliance with listing rules
- Failed to complete a business combination within the required 36-month period
- Trading of securities suspended on Nasdaq as of July 31, 2024
- Potential loss of investor confidence and market visibility due to delisting
The delisting of Maquia Capital Acquisition from Nasdaq is a significant negative development for the company and its investors. This situation arose due to the company’s failure to complete a business combination within the required 36-month timeframe, a important requirement for SPACs. The company’s attempt to secure a business combination with Velocium, Inc. came too late to satisfy Nasdaq’s conditions.
The move to OTC markets typically results in reduced liquidity and lower trading volumes, which can negatively impact share price and investor interest. Additionally, OTC-listed companies often face decreased analyst coverage and institutional investor participation, potentially leading to higher volatility and increased difficulty in raising capital in the future.
Investors should be cautious as this transition may signal underlying issues with the company’s ability to execute its business strategy effectively. The failure to complete a timely business combination raises questions about management’s deal-making capabilities and the company’s overall viability as an investment vehicle.
The delisting process for Maquia Capital Acquisition highlights the strict regulatory environment surrounding SPACs. Nasdaq’s decision to delist the company, despite granting an initial extension, demonstrates the exchange’s commitment to maintaining listing standards. This case serves as a cautionary tale for other SPACs approaching their deadlines.
The company’s appeal options, including the request for reconsideration and potential review by the Listing Council, provide some procedural protections. However, the $15,000 fee for review and the low success rate of such appeals suggest prospects for reversal. The transition to OTC markets, while maintaining some level of public trading, comes with reduced regulatory oversight and reporting requirements, which could impact investor protections.
Shareholders should closely monitor the company’s SEC filings for updates on the delisting process and any potential legal implications, including possible shareholder actions or regulatory investigations related to the failed business combination attempts.
Miami, Florida, Aug. 02, 2024 (GLOBE NEWSWIRE) — On May 7, 2024, Maquia Capital Acquisition Corporation (“Maquia” or the “Company”) received a notice from the Listing Qualifications Department of the Nasdaq Stock Market (“Nasdaq”) that Maquia was not in compliance with Nasdaq Listing Rule IM-5101-2 requiring a special purpose acquisition company must complete one or more business combinations within 36 months of the effectiveness of its IPO registration statement triggering the issuance of a Staff Delisting Determination under Rule 5810 to delist the Company’s securities. Because the Company was unable to complete a business combination by the end of the 36-month period, the Company was not in compliance. In conformity with the Listing Rules, the Company filed an appeal on May 13, 2024. A hearing on this matter was held by the Nasdaq Hearings Panel (“Panel”) on June 20, 2024.
On July 9, 2024, Nasdaq advised the Company that the Panel granted the Company’s request for continued listing on the Nasdaq Capital Market (the “Decision”), subject to the following: (1) on or before July 15, 2024, the Company will enter into a definitive business combination agreement with Regulus 333, S.A.P.I. de C.V.; and (2) on or before November 4, 2024, the Company will complete the business combination agreement with Regulus and demonstrate compliance with all applicable initial listing standards for the Nasdaq Capital Market. Nasdaq advised it is a requirement during the exception period that the Company provide prompt notification of any significant events that occur during this time that may affect the Company’s compliance with Nasdaq requirements. This includes, but is not limited to, any event that may call into question the Company’s ability to meet the terms of the exception granted. The Panel reserved the right to reconsider the terms of this exception based on any event, condition or circumstance that exists or develops that would, in the opinion of the Panel, make continued listing of the Company’s securities on the Exchange inadvisable or unwarranted. In addition, any compliance document would be subject to review by the Panel, which may, in its discretion, request additional information before determining that the Company has complied with the terms of the exception.
On July 15, 2024, the Company executed a Business Combination Agreement with Merger Sub and Velocium, Inc. On July 17, 2024, the Company provided to Nasdaq a copy of the Business Combination Agreement between the Company, Merger Sub, and Velocium, Inc. On July 19, 2024, the Company filed a Form 8-K with the SEC reporting the Business Combination Agreement with Merger Sub and Velocium, Inc. A copy of that Form 8-K was provided to Nasdaq on July 23, 2024.
On July 29, 2024, the Company received a notice from Nasdaq (the “Delisting Decision”) that the Panel determined to delist the securities of the Company from The Nasdaq Stock Market (“Nasdaq” or the “Exchange”), due to its failure to comply with the terms of the Panel’s Decision. The Panel advised that trading in the Company’s securities would be suspended at the open of trading on July 31, 2024, and that the Exchange would complete the delisting by filing a Form 25 Notification of Delisting with the U.S. Securities Exchange Commission, after applicable appeal periods have lapsed. The Company may request that the Nasdaq Listing and Hearing Review Council (the “Listing Council”) review this Delisting Decision. A written request for review must be received within 15 days from the date of the Delisting Decision. Pursuant to Nasdaq Listing Rule 5820(a), the Company must submit a fee of $15,000.00 to Nasdaq to cover the cost of the review.
On July 29, 2024, the Company submitted a request to Nasdaq for the Panel to reconsider its Delisting Decision. The Company also intends to timely request the Listing Council review this Delisting Decision. However, there can be no assurance that the Panel, the Listing Council, or Nasdaq will reconsider or change the Delisting Decision.
On July 31, 2024, the Company filed an application to list on the OTCQX with the same ticker symbols.
Additional information about the Delisting Decision will be provided in a Current Report on Form 8-K to be filed by Maqua with the SEC and available at www.sec.gov.
About Maquia Capital Acquisition Corporation
Maquia Capital Acquisition Corporation is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The Company is led by Chief Executive Officer, Jeff Ransdell, Chief Financial Officer, Jeronimo Peralta, Chief Operating Officer, Guillermo Cruz, and Chief Investment Officer, Maggie Vo.
Forward-Looking Statements
Certain statements included in this press release may be considered forward-looking statements. Forward-looking statements are statements that are not historical facts and generally relate to future events or future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements, including the identification of a target business and a potential business combination or other such transaction, are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Maquia and its management, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, various factors beyond management’s control, including general economic conditions and other risks, uncertainties and factors set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Maquia’s annual report on Form 10-K, filed with the SEC on April 16, 2024, and in other filings with the SEC.
Contact:
Guillermo Eduardo Cruz
Maquia Capital Acquisition Corporation
50 Biscayne Boulevard, Suite 2406, Miami, FL 33132
E-mail: guillermo@maquiacapital.com
Telephone: (305) 608-1395
FAQ
Why is Maquia Capital Acquisition (MAQCU) being delisted from Nasdaq?
MAQCU is being delisted for failing to comply with Nasdaq Listing Rule IM-5101-2, which requires a special purpose acquisition company to complete one or more business combinations within 36 months of its IPO registration statement’s effectiveness.
When will MAQCU’s securities stop trading on Nasdaq?
Trading of MAQCU’s securities was suspended on Nasdaq at the open of trading on July 31, 2024.
What actions is MAQCU taking in response to the Nasdaq delisting decision?
MAQCU has requested reconsideration from the Nasdaq Panel, plans to appeal to the Nasdaq Listing and Hearing Review Council, and has applied to list on the OTCQX with the same ticker symbols.
Did MAQCU attempt to complete a business combination before the delisting?
Yes, MAQCU executed a Business Combination Agreement with Merger Sub and Velocium, Inc. on July 15, 2024, but this was not sufficient to maintain Nasdaq listing compliance.
