An Initial Public Offering With High Hopes
On March 9, 2023, the curtains were raised as Xiao-I Corporation launched its IPO, fluttering 5.7 million American depository shares (“ADSs”) into the market, priced at a modest $6.80 each, amassing a grand total of $38.76 million in gross proceeds – the promise of great beginnings hung in the air.
The Spectacular Fall and Rising Tumult
Only to come crashing down on September 25, 2023, Xiao-I revealed a staggering net loss of $18.8 million for the first half of 2023, sending ripples through the investor pond. Total operating expenses skyrocketed by 355% year-on-year, with R&D expenses ballooning by a whopping 708% – a harrowing descent that saw Xiao-I’s ADS price plummet by $2.70, a sharp 14.22% decline, closing at a dismal $16.29 per ADS.
As if that wasn’t enough, on April 30, 2024, Xiao-I unveiled its FY 2023 financials, a mixed bag of $59.2 million in revenues but paired with a hefty net loss of $27 million. The ominous clouds lingered as R&D expenses surged by 118.3% year-over-year. The market responded with a $0.72, or 6.15%, dip in Xiao-I’s ADS price, ending at a concerning $10.98 per ADS.
The Final Curtain: Regulatory Struggle
Then, the final blow struck on July 15, 2024, as Xiao-I faced the wrath of the Listing Qualifications Department of NASDAQ, receiving the dreaded “Deficiency Letter” notifying it of non-compliance with the minimum bid price requirement. The market shuddered in response, pushing Xiao-I’s ADS price down by $0.13, a 2.28% decrease, closing at a mere $5.99 per ADS.
The market watched in awe as Xiao-I’s stock tumultuous rollercoaster ride evoked both joy and sorrow among investors, leaving them craving a stable horizon amidst the stormy seas of financial uncertainty.
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