Replies to post #9063 on Marathon Digital Holdings Inc (MARA)

[yanquitrader]

I must say that I'm disappointed in IR in the new 'compliance' release. The title of the press release ("Marathon Patent Group Regains Compliance with NASDAQ Listing Rules") suggests that all compliance issues are now resolved - which is clearly not so. If you read the release, you'll see that only 5550(b)(1) issues (Stockholder equity exceeding $2.5 million) have been resolved. To avoid delisting, the company also has to meet all the requirements of 5550(a) - which they have not yet done - to wit, keep their share price above $1 per share.

This release has the feel of pure pumping and, although modestly good news in its own right, in no way justifies the headline. The NASDAQ listing requirements are below for your reference.

~ yanqui

5550. Continued Listing of Primary Equity Securities
A Company that has its Primary Equity Security listed on the Capital Market must continue to meet all of the requirements set forth in Rule 5550(a) and at least one of the Standards set forth in Rule 5550(b). Failure to meet any of the continued listing requirements will be processed in accordance with the provisions set forth in the Rule 5800 Series.
(a) Continued Listing Requirements for Primary Equity Securities:
(1) At least two registered and active Market Makers, one of which may be a Market Maker entering a stabilizing bid;
(2) Minimum bid price of at least $1 per share;
(3) At least 300 Public Holders;
(4) At least 500,000 Publicly Held Shares; and
(5) Market Value of Publicly Held Shares of at least $1 million.
(b) Continued Listing Standards for Primary Equity Securities:
(1) Equity Standard: Stockholders' equity of at least $2.5 million;
(2) Market Value of Listed Securities Standard: Market Value of Listed Securities of at least $35 million; or
(3) Net Income Standard: Net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years.