Urgent.ly Faces Nasdaq Non-Compliance Warning: Retail Watches Closely

Urgent.ly stock tumbled over 16% on Monday, underperforming the broader market, as it gave back some of the gains following its 1-for-12 reverse stock split that took effect on March 18.

Just after the company skirted a potential delisting because it was non-compliant with the listing standards related to the minimum bid price requirement, it is left to contend with another headline risk.

Vienna, Virginia-based Urgent.ly, a mobility assistance software platform provider for roadside assistance, announced late Monday that the Nasdaq had notified it that its net income from continuing operations had fallen below the minimum requirement for continued listing.

The notice also said Urgent.ly did not meet the alternatives of market value of listed securities or stockholders’ equity.

The company has 45 calendar days, or until May 5, to provide Nasdaq with a compliance plan.

If the Nasdaq accepts the plan, it has an extension of up to 180 calendar days from the date of the issue of the notice to regain compliance.

Urgent.ly, it intends to submit the Compliance Plan to Nasdaq within the required period.

Message volume about Urgent.ly increased following the announcement, but the retail buzz on Stocktwits has fallen by 71% over the past week.

One user wondered why they could not sell the stock on their trading app.

According to Koyfin data, the company’s shares have a short interest of over 20%.

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