Shapeways has received notices from the NYSE of non-compliance with stock market standards

Shapeways, a provider of 3D printing services, has been notified by the New York Stock Exchange (NYSE) that the company’s current situation is not in line with stock exchange listing standards. The NYSE requirements require that each publicly traded company shares its minimum average closing price of $ 1.00 per share for the next 30 days. Shapeways has not traded above $ 1.00 as of July 14, 2022, and while the announcement has no direct effect on Shapeways’ stock market status, if it is unable to improve its share price in the next six months, the company may be pulled off the stock exchange.

In response to the announcement, Shapeways announced that it intends to notify the NYSE of its compliance recovery strategy by August 29, 2022, with options active such as a reverse stock split. Should the company decide to do so, the number of remaining shares would be reduced in a way that proportionally raises its share price, while leaving the overall market value unchanged.

As stated in the Shapeways public response to the NYSE notice, he has a six-month remedy period to get his stock back in line, and measures such as a reverse stock split can help him with that. However, the company’s consistently low share price also indicates its inability to meet the ambitious financial targets it has promised investors over the past 16 months.

In the run-up to Shapeways’ merger with SPAC Galileo Acquisition, which was made public in September 2021, it made bold predictions about its service bureau’s revenue potential. In fact, at the investor presentation when the deal was announced in April this year, the company forecasted revenues of $ 86 million in fiscal 2022, $ 150 million in fiscal 2023, and $ 250 million in fiscal 2024.

Meanwhile, in its first public announcement after going public, Shapeways lowered its forecast for 2021 from an initially projected $ 44 million to $ 32.5 million to $ 33.5 million. Since then, Shapeways’ plans to drive growth through investment have also failed as the latest financial data for Q2 2022 shows the company generated $ 8.4 million in revenue, or -4.5% less in the second quarter of 2021

Likewise, the company’s revenues for the first half of 2022 of $ 16 million leave it well below the $ 86 million promised to investors for fiscal year 2022, which may indicate why its share price fell to such a low level. In the short-term forecasts, growth is flat and revenues are expected to remain at a similar level of approx. USD 8-9 million / quarter. The company closed last quarter with $ 50.4 million in cash, slightly more than half of the funds raised during its debut on the stock exchange, and showed no revenue growth.

Source: www.shapeways.com