Why going dark makes sense for some struggling B.C. tech companies

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Public markets continue to be bearish for tech stocks

Betakit and Kalkine Media reported the company planned to raise $200 million with an initial public offering before Christmas of 2021.

Some are struggling with stock values so low that they may be at risk of delisting for failing to meet minimum listing requirements. And now some of those companies that did go public may have no choice but to go dark, as their stock continues to languish. D-Wave was among the North American companies to go public via a “blank cheque” Special Purpose Acquisition Company . Its share price has fallen from US$10.41 per share on Dec. 31, 2020, to US$0.77 per share as of Nov. 7, 2023. The company has been warned twice now this year that it was not meeting the NYSE’s listing requirements.

Some companies may be able to weather the current public markets drought and come out the other end with stronger stock prices. “We tend to focus at the larger end,” Short said. “So we are looking for companies with a billion-dollar valuation and critical mass on revenues.”

 

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