Loyalty Ventures (NASDAQ:LYLT) stock is taking off on Monday despite the company preparing to delist shares from the Nasdaq.
Loyalty Ventures announced last week that shares of LYLT stock would be delisted from the exchange. The company notes that this is a side effect of its ongoing bankruptcy process. It intends to file a Form 25 connected to this with the U.S. Securities and Exchange Commission (SEC) today.
According to Loyalty Ventures, this delisting doesn’t mean that LYLT stock will disappear completely. The company notes that it’s possible shares could end up on the Pink Open Market operated by the OTC Markets Group. However, it’s not seeking listing on other national exchanges and this over-the-counter listing may not come to pass.
What’s Behind the LYLT Stock Movement Today?
It looks like the rise in price today for LYLT comes from traders pumping up shares prior to its Nasdaq delisting. That makes sense as investors sometimes see stocks go through extreme volatility alongside bankruptcy and delisting proceedings.
In the case of LYLT stock, some 3.4 million shares have changed hands as of this writing. That’s strong movement in pre-market trading compared to its daily average volume of about 6 million shares.
LYLT stock is up 32.6% as of Monday morning.
Investors looking for more of the latest stock market news will want to stick around!
InvestorPlace is collecting all of the hottest stock market news traders need to know about on Monday! That includes the biggest pre-market stock movers this morning, as well as the latest news on Maxpro Capital Acquisition (NASDAQ:JMAC) and Mullen Automotive (NASDAQ:MULN) shares. We’ve got all that news ready to go below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.