Vapotherm Inc, a leading developer and manufacturer of advanced respiratory technology, has formally declared its intention of voluntarily delisting its common stock from The New York Stock Exchange (NYSE). The announcement, made on Monday, triggered a decline in the company’s stock value. Closing at $1.50 on Monday, the stock opened at $1.40 on the subsequent day, experiencing a sharp dip during morning trading.
At the time of this publication, Vapotherm Inc stock (VAPO) has witnessed a decline.
Vapotherm Inc
Current Price: $1.16
Change : -0.34
Change (%): (-22.67%)
Volume: 99.6K
Source: Tomorrow Events Market Data
The decision of voluntarily delisting comes after Vapotherm provided notice to the NYSE on December 11, 2023. The company plans to file a Form 25 with the Securities and Exchange Commission (SEC) to effect the delisting, with an expected effective date of or around December 31, 2023. While the timing is partially influenced by the possibility of falling out of compliance with the NYSE’s $15 million market capitalization requirement, Vapotherm has been evaluating its listing options for an extended period. The company concluded that the costs associated with an NYSE listing, along with the management attention required for compliance, outweigh the benefits of being listed on that exchange.
Eliminating the administrative effort to maintain compliance with NYSE listing standards will allow Vapotherm to redirect its focus toward its customers, business operations, and the patients benefiting from its respiratory technology. The company has applied to have its common stock quoted on the OTCQX Marketplace, expecting the common stock to be quoted under its current symbol “VAPO” on the first trading day after NYSE trading concludes, pending approval from the OTCQX.
Despite the delisting, Vapotherm will continue to adhere to the periodic reporting requirements of the Securities Exchange Act of 1934. Stockholders will not be required to exchange any shares, and electronic trading is anticipated to proceed without significant disruption.
This decision follows earlier notifications from the NYSE indicating Vapotherm’s non-compliance with continued listing standards. In response, the company implemented measures such as a reverse stock split. After careful consideration and discussions at the Board of Directors level, Vapotherm has determined that voluntarily delisting from the NYSE and moving to the OTCQX is in the best interests of both the company and its stockholders. The move is deemed preferable to continuing efforts to meet the NYSE’s continued listing requirements. This strategic shift aligns with the company’s commitment to prioritizing its operational focus and delivering value to its investors.
