NUBURU, Inc. is undergoing a reverse stock split to potentially enhance its stock market price and meet the NYSE American listing requirements.
The company is appealing the NYSE American’s delisting decision while temporarily transitioning to trade on the OTC markets under the symbol “BURU”.
Despite facing delisting challenges, BURU’s stock has shown resilience with a recent price increase as the company works on reducing debt and securing new orders.
NUBURU, Inc. (NYSE American: BURU), a leader in the field of high-power and high-brightness industrial blue laser technology, is facing a significant transition. The company is known for its innovative approach to laser technology, catering to various industrial applications. However, it has recently encountered challenges with its listing status on the New York Stock Exchange American (NYSE American), leading to a strategic decision to undergo a reverse stock split.
On June 25, 2024, BURU is set to implement a reverse stock split, exchanging 1 share for every 40 shares currently held by shareholders. This move is primarily aimed at consolidating the company’s shares to potentially enhance the stock’s market price and adjust the number of shares each shareholder owns. Such a strategy is often employed by companies seeking to meet the listing requirements of stock exchanges or to improve the perception of their stock among investors.
The backdrop to this decision is the NYSE American’s initiation of delisting proceedings against NUBURU, citing the company’s failure to meet the listing standards, particularly the stock’s bid price falling below ten cents. This situation has prompted NUBURU to appeal the delisting decision to the Listings Qualifications Panel of the Exchange. The appeal represents a critical effort by NUBURU to maintain its listing status and continue trading on a recognized platform.
In the meantime, the Financial Industry Regulatory Authority’s (FINRA) Department of Market Operations has assigned the symbol “BURU” for the quotation and trading of the company’s stock on the over-the-counter (OTC) markets, starting from June 14, 2024. This transition to OTC markets is a temporary measure as the company navigates through its appeal process and works towards meeting the NYSE listing requirements. CEO Brian Knaley has expressed regret over the delisting proceedings but remains optimistic due to the company’s ongoing efforts to reduce debt, raise capital, secure new orders, and gain positive recognition in its field.
Despite these challenges, BURU’s stock price has shown resilience, with a recent increase of 6.11%, closing at $0.0382. The stock has experienced significant volatility, trading as high as $2.15 and as low as $0.029 over the past year. With a market capitalization of approximately $1.47 million and a trading volume of 4.41 million shares, NUBURU is actively working to stabilize its financial position and regain compliance with the NYSE listing standards. The reverse stock split is a strategic step in this direction, reflecting the company’s commitment to its shareholders and its future in the industrial laser technology market.
