Reitar Logtech has been trading below $1.00 long enough for Nasdaq to open a formal compliance review. On August 21, the company authorized spending up to $3 million buying back its own Class A ordinary shares, funded from existing cash — a move that arrived with a delisting deadline roughly four weeks away.
According to a Form 6-K the company filed with the SEC, Nasdaq notified Reitar on March 26 that its shares had been trading below the $1.00 minimum bid price for 30 consecutive business days, in breach of its listing rules. Nasdaq gave the company a 180-day window to fix it, and that window closes on September 22. To satisfy the requirement, shares need to close at or above $1.00 for 10 consecutive business days before then.
For anyone holding the stock, the buyback program is softer than it sounds. The company's August 21 announcement says it carries no minimum purchase obligation and can be suspended, modified or discontinued at any time, at management's discretion. Funding comes from existing cash, but the release gives no figure for what those balances are. The company has not said how it expects the program to close the gap to $1.00.
Shares closed 38.22% higher at $0.1150 on August 25, four days after the program was published, on dollar volume of about $40.8 million.
On that session, reported short volume of about 29.4 million shares was higher than the free float of about 17.3 million shares.
What the company plans if shares are still below $1.00 when September 22 arrives, the release does not say.