Dynatronics Corporation (NASDAQ: DYNT) experienced significant market volatility on Friday. The company’s stock plummeted nearly 8% during regular trading hours following the announcement of its delisting from NASDAQ. However, the afterhours session brought a dramatic turnaround, with the stock soaring by nearly 65%.
Afterhours Rally Following Delisting News
The tumultuous day for Dynatronics began with the announcement that the company’s stock would be delisted from NASDAQ due to noncompliance with the minimum bid price requirement. The delisting notice indicated that if Dynatronics did not regain compliance by June 24, 2024, trading would be suspended at the opening of business on July 9, 2024. This news sent the stock into a tailspin, resulting in an almost 8% decline.
Dynatronics Delisting Updates
The afterhours session painted a different picture for the company. Investors reacted positively to the company’s strategic decision to transition to the OTC Markets Group, Inc. (“OTC”). This move, anticipated to provide a more stable trading environment, sparked a 65% rally in the stock. The decision to list on the OTCQB Venture Market was seen as a prudent step, ensuring continued trading without disruption.
Facing recurrent issues with NASDAQ compliance, Dynatronics opted to move its listing to OTCQB. This transition, approved by OTC, is expected to take effect immediately following the NASDAQ suspension on July 9, 2024. The company reassured shareholders that the ticker symbol and CUSIP would remain unchanged, and no action would be required from them.
Conclusion: Navigating Market Volatility
Despite the challenges associated with the NASDAQ delisting, Dynatronics remains committed to its business operations and strategic growth. The transition to OTCQB is aimed at stabilizing its stock and ensuring continuous trading. Investors are advised to monitor the stock closely, especially considering the high potential for volatility given the low float of 3.2 million shares and the short float of 0.5%.
As the market reacts to these developments, Dynatronics’ stock could see increased activity. For those holding positions, adjusting stop losses to the average range is recommended to navigate the anticipated fluctuations. The stock’s recent afterhours performance indicates strong market interest and sets the stage for an eventful trading period ahead.
