Last week Moxian, Inc. ($MOXC) announced Nasdaq has determined that the company complies with a listing rule regarding the market value of its listed securities. The Chinese company, which is particularly focused on the medical sector by offering cloud-based scheduling and notification products, is delighted with this news and now wants to press ahead.
The Effect of the Listing Rule
The listing rule means that the market value of Moxian’s listed securities was less than $35 million, meaning it’s failing to meet the requirement of listing on the Nasdaq Capital Market, also known as the Market Value Rule. Nasdaq had found that for the month of March 2020, Moxian was below the required market value for 30 consecutive business days. Nasdaq therefore gave the company until September 16, 2020 to once again comply with this market value rule, which Moxian has agreed to and subsequently fulfilled. From August 27 to September 16, the market value of the listed securities was $35 million or higher, bringing the matter to Nasdaq’s conclusion.
An Essential Merger for Moxian’s Market Position
Now that the Market Value Rule has been complied with, the company wants to expand its activities. The activity focuses on developing mobile applications and online platforms that enable small to medium-sized businesses to attract customers. In a quest for further expansion, Moxian has found an American e-commerce service provider, with which it is now trying to complete a merger. BTAB Group, Inc. operates primarily through subsidiaries in Australia and profiles itself as a provider of affordable online technology, with the aim of enabling SMEs to compete in an underserved e-commerce market segment. The Memorandum of Understanding was signed on August 8, 2020, as was the Condition Agreement or Definitive Share Exchange Agreement signed on August 27, 2020.
Under the agreement, the company will issue 59.27 million new ordinary shares and 50 million preference shares (Class A) with restrictive voting rights in exchange for the entire equity of BTAB Group. This occurs in a business combination that will generate a merged entity worth more than $400 million and no less than $40 million in annual revenue. BTAB Group has agreed to obtain an authentic financing commitment of up to $50 million prior to closing. Good news for current shareholders, who will hold around 20 percent of the increased equity capital after the merger. The agreement also includes a condition that the shareholders of the company must first approve, as well as the regulatory authorities. Furthermore, the agreement includes an independent valuation of BTAB Group and a satisfactory due diligence, meaning an investigation of financial data check before entering into a proposed transaction with another party.
The closure is not expected to take place before December 31, 2020.
A Share that Pulls Itself Up
After the COVID-19 stock market crash in March 2020, the MOXC-share has been climbing steadily in recent months, with two high peaks in particular during June and August. On September 17, 2020, the share dropped significantly from $2.36 per share to a low of $1.63 on September 22. The highest quoted value in the past 52 weeks is $3.44 per share, compared to the lowest quoted value in the past 52 weeks of $0.50 per share. The share market value has risen sharply after the letter from Nasdaq to $28.66 million with a price/profit of 65.56. The share has seen an increase of +8.6% this morning, with the price currently standing at $1.77 per share.