Abraxas Petroleum Corporation (NASDAQ:AXAS) fell 17% pre-market following notice of delisting for failing to meet the continued NASDA listing rule. On May 11, 2021, and July 26, 2021, the Nasdaq Stock Market issued the company with notices indicating that the company was not complying with Nasdaq Listing Rule 5550(b) for continued listing.
The May 11 notice indicated that as previously reported in Form 10—Q for the first quarter of 2021, the company didn’t meet the $4.5 million shareholder’s equity requirement as per Rule 5550(b)(1). As a result, the July 26 Notice stated that the company had failed to comply with Rule 5550(b)(2) and Rule 5550(b)(1) for alternative continued listing.
Most importantly, the company’s market value as of July 21 dropped below $35 million, which is the minimum market value as per Rule 5550(b)(2). Equally, the company’s continuing operations net losses for 2018, 2019, and 2020 financial years didn’t meet the net income standard of $500,000 as per Rule 5550(b)(3). So, AXAS is a stock to keep an eye on.
On Friday, AXAS stock jumped 1.33% at $2.29 with more than 518K shares, compared to its average volume of 415k shares. The stock has moved within a range of $2.2300 – 2.4000 after opening the trade at $2.26.
