Key Takeaways:
- SEC postpones listing of Exodus Movement, Inc.’s stock, citing review of registration statement
- Exodus will maintain trading on OTCQX while exploring options for future listing
Exodus Movement, Inc. disclosed that the NYSE American has postponed the listing of its shares until the Securities and Exchange Commission (SEC) concludes its review of Exodus’ registration statement, which became effective on April 28, 2024.
This unexpected delay was revealed in a late Wednesday press release by the company, citing the ongoing scrutiny by the U.S. Securities and Exchange Commission (SEC) as the primary cause.
NYSE American notified Exodus on Wednesday that the SEC staff was still in the process of evaluating the company’s registration statement, which had gained effectiveness by the end of April. Initially, the NYSE American had greenlighted Exodus’ Class A common stock for listing, with trading slated to commence on May 9, 2024.
The postponement in the listing comes as a surprise to Exodus, which had been forthcoming and cooperative throughout the process. CEO JP Richardson expressed optimism that the SEC would adhere to the law and resolve the matter expeditiously.
In the interim, Exodus’ Common Stock will continue trading on the OTC Markets’ OTCQX exchange under the symbol “EXOD.” Consequently, the company has indicated that it might explore seeking a listing on a national securities exchange in the future once the SEC finalizes its review.
“While we are surprised and confused by this last-minute decision, we remain hopeful that the SEC will follow through on its commitment to treat us as the law intends. Exodus has been fully transparent and responsive throughout this process and we expect a swift resolution in this matter,” said Exodus CEO JP Richardson.
Earlier this week, Exodus had announced that its shares would be uplisted from the OTCQX to NYSE American by May 9, anticipating greater long-term value for shareholders by enhancing its presence within the investor community and increasing liquidity.
In recent years, under Gary Gensler’s leadership, the SEC has taken a robust stance toward the emerging crypto industry. Gensler’s tenure has been characterised by efforts to integrate crypto into the SEC’s regulatory framework, employing the Howey test to classify digital assets as securities.
