WM Technology Inc (NASDAQ:MAPS) declined sharply in after-hours trading on Tuesday after the company announced plans to voluntarily delist its shares from Nasdaq.

MAPS closed the regular session down 0.79% at $0.71 but plunged 37.16% after hours to $0.44.

Overview

WM Technology is a marketplace and technology solutions provider serving the cannabis industry through its Weedmaps platform. The stock has traded between a 52-week low of $0.60 and a high of $1.36.

Delisting Decision

The company announced Tuesday that it will voluntarily delist its Class A common stock and warrants from the Nasdaq Global Select Market.

WM Technology expects to file a Form 25 with the U.S. Securities and Exchange Commission around April 17, with the final trading day on Nasdaq expected around April 24.

Following delisting, the company plans to deregister its securities and suspend its reporting obligations under the Securities Exchange Act.

Strategic Rationale

The company's board said the decision followed a detailed review of operational and financial factors.

Management cited limitations imposed by a Nasdaq listing, challenges in achieving long-term value in the cannabis sector, low trading liquidity, limited analyst coverage, and the high costs associated with regulatory compliance.

CEO Doug Francis said the move would provide greater flexibility to operate in a highly regulated and evolving cannabis market.

OTC Transition

After delisting, WM Technology expects its shares to trade on a market operated by OTC Markets Group.

However, the company noted there is no guarantee that an active trading market will continue or that liquidity levels will remain stable.

Trading Metrics

WM Technology has a market capitalization of approximately $113.08 million and is trading closer to its 52-week low than its high.

Benzinga Edge Rankings indicate the stock shows a positive short-term price trend, while medium- and long-term trends remain negative.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

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