MicroCloud Hologram (NASDAQ:HOLO) stock is soaring more than 70% today after the firm announced that it had regained compliance with a Nasdaq rule. Specifically, the exchange’s Listing Rule 5550(a)(2) requires stocks listed on the exchange to have a minimum bid price of $1 for a certain number of consecutive days.
The company first received notice that it was in violation of the rule back in late November. However, as of the close on Feb. 21, MicroCloud has regained compliance on this front.
MicroCloud focuses on the “research and development, and application of holographic technology,” per Yahoo Finance. This includes technologies like lidar solutions, “technical holographic imaging solutions” and “holographic vehicle intelligent vision technology to service customers that provide holographic advanced driver assistance systems (ADAS).”
MicroCloud’s Nasdaq Compliance
Nasdaq notified MicroCloud in late 2023 that it was out of compliance with the listing rule because shares did not reach above $1 for 31 straight trading days. However, after HOLO stock was able to trade above $1 for 13 consecutive trading days ending on Feb. 21, the firm is once again meeting the requirements set by Nasdaq.
Consequently, MicroCloud Hologram will be able to keep its shares on the exchange instead of possibly moving them to an over-the-counter (OTC) exchange.
So, what helped shares regain compliance?
For one, on Feb. 7, shares of HOLO stock rallied after the firm disclosed that it “planned to join the Communications Industry Association.” Some of the heavy hitters in this group include Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META).
Founded in 2020, MicroCloud generated revenue of $72.5 million for 2022 and reported an operating loss of $21.2 million.
The Price Action of HOLO Stock
Shares of HOLO stock have proven volatile lately, having fallen more than 70% in the last five trading days and over 40% in the last 12 months. However, shares have jumped more than 400% in the last month.
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On the date of publication, Larry Ramer 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.
