WASHINGTON — SatixFy is the latest space firm to face being kicked off a stock exchange after shares plummeted following a merger with a Special Purpose Acquisition Company (SPAC), a fast-track alternative to traditional initial public offerings of stock.
The NYSE American stock exchange has given the Israeli satcom equipment maker until Dec. 30 to submit a plan for meeting conditions for trading on the platform by May 30, 2025.
In a Dec. 1 news release, SatixFy said it ran afoul of listing requirements after its market capitalization — the total value of a company’s stock — recently fell below $50 million.
SatixFy’s shares are currently trading at around 40 cents, down more than 94% from the start of 2023.
The shares were listed in October 2022 after SatixFy merged with a SPAC called Endurance Acquisition Corp., a shell company already trading publicly in search of an investment opportunity, to get more access to capital for expanding its satellite equipment business.
SPAC mergers do not require the intensive due diligence of a traditional IPO process, and many young space companies that recently merged with a SPAC have missed revenue targets as their shares heavily underperform in the market.
Missed guidance
In a March 2022 investor presentation to drum up support for its SPAC merger, SatixFy forecast $40 million in revenue for 2022, rising to $86 million in 2023.
The company ultimately recorded $10.6 million in revenue for 2022 after supply-chain issues across the industry delayed and canceled orders by existing and prospective customers. Management changes following the death of SatixFy’s founder and CEO during 2022 had also impacted growth, the company added.
In earnings results posted a day before announcing the delisting notice, SatixFy said it had made $8.9 million in revenue for the nine months to Sept. 30, 2023, a 31% year-on-year increase.
The company reported a net loss of $28.1 million for the…
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