Unico American (NASDAQ:UNAM) stock is falling on Tuesday after the company entered into conservatorship as a result of its poor financial condition.
This has the Insurance Commissioner of the State of California taking control of the company. The order for this was handed down from the Superior Court of California, Los Angeles County, Department 32.
As a result of this, California’s Insurance Commissioner has control of all assets and businesses connected to Unico American. The state regulator also gains all powers connected to operating the business as long as the conservatorship is in place.
To go along with this, Unico American has noted that it won’t be able to complete its annual filing for 2022. This, combined with the determination that Unico American is a shell company, has it being delisted from the Nasdaq.
What This Means for UNAM Stock
While UNAM will be delisted from the Nasdaq, that doesn’t mean the stock will just disappear. Instead, it’s possible that the company’s shares will start trading on the OTC Pink Market or Expert Market. However, Unico American doesn’t guarantee that any listing on these markets will happen.
With today’s news comes some 22,000 shares of UNAM stock changing hands. To put that in perspective, the company’s daily average trading volume is closer to 9,500 shares. UNAM is a volatile penny stock that investors will want to be wary about investing in.
UNAM stock is down 24.2% as of Tuesday morning.
Investors looking for more of the most recent stock market news will want to keep reading!
InvestorPlace is home to all of the biggest stock market stories that traders need to know about on Tuesday! A few examples include why shares of YS Biopharma (NASDAQ:YS) and Millennium Group (NASDAQ:MGIH) stock are up today, as well as the biggest pre-market stock movers from this morning. You can find all of these topics ready to go at the links below!
More Stock Market News for Tuesday
- Why Is YS Biopharma (YS) Stock Up 31% Today?
- Why Is Millennium Group (MGIH) Stock Up 45% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White 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.
