Damon Inc., a manufacturer specializing in motorcycles and bicycle parts, currently trading at $0.01 per share after losing 99.12% year-to-date, received a notification from The Nasdaq Stock Market LLC on Monday, April 25, 2025, indicating the potential delisting of the company’s securities. According to InvestingPro data, the company’s Financial Health Score is rated as WEAK, with a concerning current ratio of 0.09. The Nasdaq Listing Qualifications Department cited discretionary authority under Listing Rule 5101, expressing concerns over public interest following Damon Inc.’s recent securities issuance which resulted in substantial dilution of shareholder value.
The contentious issuance involves Series A warrants, exercisable on a cashless basis, as detailed in Damon Inc.’s March 20, 2025, underwriting agreement and subsequent SEC filings. Nasdaq’s staff determined the move led to significant dilution for Damon Inc.’s shareholders, warranting the delisting action. InvestingPro analysis reveals the stock has experienced high price volatility, with the share price falling from a 52-week high of $4.95 to current levels.
In response to the notification, Damon Inc. has been granted a hearing with the Nasdaq Hearings Panel, scheduled for May 20, 2025, where the company will present its compliance plan. Meanwhile, trading of Damon Inc.’s shares has been halted as of Thursday, April 29, 2025, under Nasdaq’s Listing Rule 4120(a)(5), awaiting the Panel’s decision.
Proactively, Damon Inc. is exploring the possibility of trading on the OTCQB market, operated by OTC Markets Group Inc., to mitigate the risk of being delisted from Nasdaq. This move is part of the company’s contingency planning should the Panel’s ruling not be in its favor.
As of the date of the last report, Damon Inc. reported having 2,450,477,042 common shares issued and outstanding.
The information provided in this article is based on a press release statement from Damon Inc. and reflects the company’s current situation concerning the Nasdaq listing status and its forward-looking plans to ensure continued trading accessibility for its shareholders.
In other recent news, Damon Inc. is facing the possibility of being delisted from the Nasdaq Global Market due to its shares falling below the minimum bid price requirement. The company has until April 11, 2025, to appeal this determination and plans to submit a compliance plan, which may include a reverse stock split. Additionally, Damon Inc. has amended a secured promissory note with Streeterville Capital, LLC, introducing a conversion feature that allows the conversion of the note’s balance into common shares. The conversion price is set at 90% of the lowest daily volume-weighted average price, with a floor price of $0.20 per share. This amendment also includes an ownership limitation preventing Streeterville from acquiring more than 9.99% of Damon Inc.’s outstanding shares post-conversion. Furthermore, Damon Inc. issued 1,255,230 common shares to fulfill an installment owed to a former financial adviser. The company reports having 26,894,933 outstanding common shares following recent issuances. These developments follow Damon Inc.’s quarterly report for the period ending December 31, 2024.
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