Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing
On April 5, 2023, Mercato Partners Acquisition Corporation, a Delaware company
(the "Company") received a letter (the "Letter") from the staff at The Nasdaq
Stock Market LLC ("Nasdaq") notifying the Company that, for the 30 consecutive
trading days prior to the date of the Letter, the Company's common stock had
traded at a value below the minimum $50,000,000 "Market Value of Listed
Securities" ("MVLS") requirement set forth in Nasdaq Listing Rule 5450(b)(2)(A),
which is required for continued listing of the Company's common stock on The
Nasdaq Global Market. The Letter is only a notification of deficiency, not of
imminent delisting, and has no current effect on the listing or trading of the
Company's securities on Nasdaq.
In accordance with Nasdaq listing rule 5810(c)(3)(C), the Company has 180
calendar days, or until October 2, 2023, to regain compliance. The Letter notes
that to regain compliance, the Company's common stock must trade at or above a
level such that the Company's MVLS closes at or above $50,000,000 for a minimum
of ten consecutive business days during the compliance period, which ends
October 2, 2023. The Letter further notes that if the Company is unable to
satisfy the MVLS requirement prior to such date, the Company may be eligible to
transfer the listing of its securities to The Nasdaq Capital Market (provided
that the Company then satisfies the requirements for continued listing on that
market).
If the Company does not regain compliance by October 2, 2023, Nasdaq staff will
provide written notice to the Company that its securities are subject to
delisting. At that time, the Company may appeal any such delisting determination
to a hearings panel.
The Company intends to actively monitor the Company's MVLS between now and
October 2, 2023, and may, if appropriate, evaluate available options to resolve
the deficiency and regain compliance with the MVLS requirement. While the
Company is exercising diligent efforts to maintain the listing of its securities
on Nasdaq, there can be no assurance that the Company will be able to regain or
maintain compliance with Nasdaq listing standards.
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