SPAC Evo Acquisition Receives Noncompliance Letters From Nasdaq

Evo Acquisition Corp. has received two noncompliance letters from Nasdaq.

The special purpose acquisition company (SPAC) received a letter on April 3 notifying it that it was below the minimum of $35 million required for continued listing on the Nasdaq Capital Market, and another letter on April 5 saying it no longer meets the minimum 500,000 publicly held shares required for continued listing, Evo Acquisition Corp. said in a Thursday (April 6) press release.

The company has until May 22 to provide Nasdaq with a plan to achieve and sustain compliance with all listing requirements, and until Oct. 2 to regain compliance by closing at $35 million or more for 10 consecutive business days, according to the release.

The two letters have no immediate effect, and Evo Acquisition Corp.’s securities continue to trade on the Nasdaq Capital Market, the release said.

“The company intends to actively monitor its MVLS [market value of limited securities], provide Nasdaq prior to May 22, 2023, with the company’s plan to meet the public float standard, and will evaluate available options to regain compliance with the Nasdaq continued listing standards, including potential arrangements to be made in connection with the company’s definitive business combination agreement with 20Cube Logistics Pte. Ltd. announced by the company on Oct. 18, 2022,” the press release said. “However, there can be no assurance that the company will be able to regain compliance under the market value standard and the public float standard, or will otherwise be in compliance with other Nasdaq listing criteria.”

In October 2022, Evo Acquisition Corp. announced it had entered into a business combination agreement with 20Cube Logistics, a Singapore-based, software-enabled international supply chain orchestrator.

The company said at the time that the transaction had been approved by the two companies’ boards of directors, was subject to the approval of the companies’ shareholders and other customary conditions, and was expected to close in the first quarter of 2023.

As PYMNTS reported in December 2022, the pace of SPAC deals has slowed as SPACs face increased regulatory scrutiny and are pressured to rein in optimistic forecasts that used to lure investors. Not only that, but increased scrutiny leads to higher operating costs, lower margins and lower returns for the investors.