Troika (NADSAQ:TRKA) stock seems to be heading for the proverbial chopping block, although not without a fight. The New York-based media company was recently issued a notice from Nasdaq that TRKA stock will be delisted for failure to maintain the minimum stock price of $1 per share.
What’s going on with Troika stock lately?
Well, after a month of bouncing between 15 and 25 cents per share, it seems the time of reckoning has come for this downtrodden media company. Troika just announced the receipt of a Staff Delisting Determination.
Troika has actually toiled below the $1 minimum since April 2022, though it may not have much longer. Nasdaq’s infamous minimum share price rule has resulted in the delisting of hundreds of companies from the exchange over the years. Apparently, TRKA stock is next in line after over a year below the floor.
Unfortunately, this news has only been detrimental to TRKA. Currently, shares are down more than 10% today on the delisting notice. Troika now trades for around 19 cents per share.
TRKA Stock Dips Below 20 Cents Ahead of Delisting Hearing
Troika intends to put up a battle before it sinks. Specifically, the company has requested to appeal the delisting determination before a Nasdaq Hearings Panel, “pending its return to compliance with the Minimum Bid Price Rule.” According to the news release, hearings are usually scheduled within roughly a month following a request.
In the meantime, Troika plans to initiate a reverse stock split in order to raise the company’s share price. A reverse split will effectively reduce the number of floating shares in the market. It’s currently unclear what the terms of the split will be, but the company is clearly committed to remaining on the Nasdaq.
At least that’s what Troika CEO Sid Toama recently said. Per the news release:
“Notwithstanding the Company’s strong financial and operational performance amidst a major restructuring over the past year, our stock price continues to be depressed and severely undervalued, and unreflective of the Company’s strong foundation as we head into what are historically the Company’s most productive performance months in the middle of the year. The Company has decided to enact a reverse stock split to enhance shareholder value and further position the Company for long-term success.”
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
On the date of publication, Shrey Dua 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.