Magnegas Applied Technology Solutions Inc (NASDAQ: MNGA) is having a great start to the trading session this morning, and for good reason. The company announced that the NASDAQ has approved a 180-day extension to regain compliance. Of course, this news excited investors who are pushing the stock for the top. Today, we’ll talk about:
- The extension;
- what we’re seeing from MNGA stock as a result; and
- what we’ll be watching for ahead.
MNGA Announces Extension Approval From NASDAQ
As mentioned above, MagneGas Applied Technology Solutions is having a strong start to the trading session today after announcing an extension from the NASDAQ. In a press release issued early this morning, the company said that the NASDAQ Listing Qualifications Staff has granted MNGA its request for an additional 180-day period to regain compliance.
This news ultimately means that the company will have until May 6, 2019 to regain compliance. The issue is the minimum bid price rule. NASDAQ requires that listed securities maintain a minimum bid price of $1.00. However, the company has failed to do so. Nonetheless, now they have more time to bring the stock back up to par, which is where the excitement is coming from.
In a statement, Scott Mahoney, CEO at MNGA, had the following to offer:
We are pleased to receive an extension from NASDAQ as we advance our commercial strategy and corporate restructuring we recently announced. We remain confident in regaining compliance and I look forward to expanding on our business and capital markets strategy further during management’s next quarterly earnings conference call.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of MagneGas, the news proved to be overwhelmingly positive. After all, there are several benefits to being listed on the NASDAQ, and with the threat of delisting being pushed back, the company has time to come up with and execute a plan to maintain its listing. So, it comes as no surprise to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:57), MNGA is trading at $0.31 per share after a gain of $0.035 per share or 12.85% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MNGA. In particular, we’re interested in following the story surrounding the company’s continued work to restructure and move toward the technology side of the energy sector as their movements in this area have been very positive as of late. We’re also interested in seeing the company’s work to bring the price of shares back up to meet the NASDAQ’s minimum bid price requirement. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!