The company that was once the face of telemedicine will soon lose its place on the New York Stock Exchange (NYSE) after the Big Board formally issued Babylon Health with a notice stating non-compliance of listing rules.
The notice was expected after what has been a rocky road for the company. The digital health provider, which was founded in 2013, announced plans to go private as it contested with increasing losses. In Q1 results announced this year, Babylon reported a loss of $63.2m compared to $29.1m in the same period in 2022.
The notice from the NYSE states that Babylon’s total market cap over a month’s trading period is now not high enough along with the last reported shareholders’ equity. In addition, the company’s average closing price for its Class A shares was less than $1.00 over a 30 trading-day period.
The impending removal from the NYSE means the company will have just spent just two years on the exchange, after it began trading in 2021 after a business combination with Alkuri Global Acquisition Corp.
Considering it is going ahead with its transaction from investment manager AlbaCore Capital, Babylon said it does not intend to take corrective measures. It has notified the NYSE and expects its listing to be immediately suspended.
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Babylon and MindMaze will combine to form a new digital health organisation, with the transaction expected to close in July. MindMaze is a digital neurotherapeutic company for brain health and recovery.
In a market report by GlobalData, telehealth (which includes all forms of virtual care) is predicted to be worth $3.8bn by 2030.