After a challenging month and an even harder year, WiSA Technologies (NASDAQ:WISA) finally has some good news to report. The wireless audio technology developer has spent the entire year in an undeniable race to the bottom, losing more than 97% of its value. However, today WISA stock is skyrocketing on news that the company has finally regained compliance with the Nasdaq. While it has lost some of its previous momentum, it is currently up 90% for the day, moving from less than $2 per share to more than $3.75.
Does this mean e troubled company is finally back on the right track after a losing year? Let’s take a closer look at today’s news and what investors can expect in 2023.
What’s Happening With WISA Stock
Formerly known as Summit Wireless Technologies, WiSA hasn’t had much good news since its Amazon (NASDAQ:AMZN) storefront launch in July 2021. Since then, negative catalysts such as an ill-fated securities offering and general negative market momentum have helped push it down continuously. On June 23, 2022, the company received a delisting letter from Nasdaq accusing WISA stock of “failure to comply with the minimum bid price requirement under Listing Rule 5550(a)(2).”
The stock market index granted WiSA the customary 180-day period to regain compliance by reaching the necessary share price. While it failed to reach it by Jan. 18, 2023, the company responded by requesting a hearing. In the following weeks, it regained the necessary compliance to continue trading. Per a statement released by the company:
“On February 13, 2023, Staff informed the hearing panel (the “Panel”) that the Company had regained compliance with the minimum bid price requirement (including the $0.10 requirement) and thus was in compliance with Listing Rule 5550(a)(2). As a result of that Staff determination, the minimum bid price compliance matter was not brought before the Panel.”
This doesn’t mean that WISA stock is in the clear yet. It skyrocketed today on the news but still has a ways to go before investor confidence is fully restored. However, this is an important and encouraging step for the small company.
On the date of publication, Samuel O’Brient did not have (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.