PyroGenesis Canada (TSX: PYR) is down a substantial 15% in pre-market trading this morning following the company announcing its intention to delist from the Nasdaq.
The intention to voluntarily delist from the exchange follows the company receiving a written notice on November 22, 2022, regarding the failure to meet the minimum bid requirement of $1.00 on the exchange as a result of its falling share price. After a 180-day extension announced in March, the company revealed in August it was weighing the costs and benefits of maintaining a dual listing on both the TSX and Nasdaq.
At the time, PyroGenesis indicated that maintaining its listing on the Nasdaq had considerable costs once fees, insurance, legal requirements, accounting requirements and more were factored in, which totaled out to roughly $2.2 million per year, just to maintain said listing. PyroGenesis also expects those fees to grow due to growing compliance and regulatory requirements.
“The Nasdaq notification served to focus our attention on the current risk/reward associated with a Nasdaq listing at this time. It is worth noting that the estimated cost, exceeding $2 million which would require approximately $4-6 million in revenues, was not lost on the Board. The fact that these costs are expected to increase in future years, coupled with the general market downturn, weighed heavily in this decision,” commented CEO Peter Pascali.
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Given this, the company has stated that the expense is “not justified at this time,” and will be terminating the listing as a result. The company is expected to delist on November 6.
PyroGenesis last traded at $0.54 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
