Ideanomics (NASDAQ:IDEX) stock is surging higher by 90% today despite the possibility of a delisting from the Nasdaq Exchange. The upward move doesn’t appear to be related to company-specific news. The last filing Ideanomics reported with the U.S. Securities and Exchange Commission (SEC) — which details a delisting notice from Nasdaq — is dated April 21.
Based on the latest available data, there were 66.75 million shares of IDEX stock sold short as of April 14. That figure represents 11.03% of the float and is significant enough to drive a short squeeze. This could be a contributing reason to today’s uptick in Ideanomics.
IDEX Stock Surges Ahead of Possible Delisting
Ideanomics first received a minimum bid price deficiency notice on May 20, 2022 due to its shares trading under $1 for 30 consecutive business days. The company was then provided a 180-calendar-day period — or until Nov. 16, 2022 — to regain compliance. On Nov. 17, Ideanomics was granted another 180 days — or until May 15 of this year — to regain compliance.
However, on April 20, Nasdaq notified Ideanomics that it was again in violation of its policies due to having a closing bid price of 10 cents or less for 10 consecutive trading days, from April 5 to April 19. As a result, Nasdaq stated that shares of IDEX stock would be delisted on the morning of May 1 unless the company timely requested an appeal to the decision in front of the Nasdaq Hearings Panel. The filing of the appeal “will stay the suspension of the Company’s common stock pending the panel’s decision.”
Ideanomics noted that it plans to timely submit an appeal hearing request to the panel. Today’s continued trading of IDEX stock confirms as much. Now, its up to the exchange to make a decision, although a timetable has not been provided.
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On the date of publication, Eddie Pan 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.