Troika Media Group’s (NASDAQ:TRKA) bad week keeps getting worse. A few days ago, former CEO Sadiq (Sid) Toama submitted a letter to Troika’s board of directors challenging his recent termination. That news didn’t bode well for the already unstable company, but another news update casts an even darker shadow over it. In an 8-K filing with the U.S. Securities and Exchange Commission (SEC) dated Aug. 22, Troika announced that it has received a noncompliance letter from the Nasdaq. If the global media company doesn’t take the necessary steps to comply with the exchange’s policies within two months, TRKA stock will likely be delisted.
After a difficult month and an even worse year, this company is facing a highly uncertain future.
What’s Happening With TRKA Stock
When a penny stock displays the type of inability to grow that Troika has, delisting is always a possibility. We’ve seen it from companies like Mullen Automotive (NASDAQ:MULN) and Meta Materials (NASDAQ:MMAT), both meme stocks with highly questionable histories. A delinquency notice tends to push a stock down, as it often spooks investors. Despite a quick rally on Aug. 23, TRKA stock has been highly volatile this week and is currently down almost 4% for the day. The company is dangerously close to falling 50% over the past month.
Troika has been in a race to the bottom for months. But this development is definitely cause for concern. As the company stated in the recent 8-K:
“On August 22, 2023, Troika Media Group, Inc. (the “Company”) received a delinquency notification letter from Nasdaq stating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) because it had not timely filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the “Form 10-Q”). Nasdaq has informed the Company that the Company must submit a plan of compliance (the “Plan”) within sixty (60) days addressing how it intends to regain compliance with Nasdaq’s listing rules or otherwise file the Form 10-Q before the expiration of such sixty (60) day period.”
The company will likely do everything in its power to keep its spot on the Nasdaq. But given its recent history of executive turnover and legal problems, it’s hard to be optimistic about a turnaround. TRKA stock has stayed relevant due to retail investor interest. However, the possibility of it being delisted could scare off even the most loyal investors.
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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.
