ADA
seems that essentially due to low trading vols they decided to delist. seems to be a ploy to 'scrw' shareholders, which with the fall in share price is happening. what wld you do?
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Answer
Hi Eric,
We are not at all close to this $30mn developer of simulators for air traffic controllers and satellite based air traffic automation systems but the steady decline in the share price suggests operationally all is not well. As you are probably aware ADA estimates it will save over $600k annually by delisting, including reductions in listing fees, audit, and other associated costs. If approved, the delisting process will involve a shareholder vote on November 27, 2024.
- They have said that being listed has become a limitation, particularly for raising funds without significant shareholder dilution plus the administrative and compliance costs associated with maintaining a listing are too onerous.
Our frustration would be more around the cash burn of the last few years, a delve into their cashflow and balance sheet on the MM Site tells as much.
