SWVL Holdings Corp, a global provider of tech-enabled mass transit solutions, led by Egyptian tycoon Mostafa Kandil, has successfully regained compliance with Nasdaq’s audit committee requirements.
This follows the recent notice from The Nasdaq Stock Market on May 1, 2023, notifying the company of its non-compliance due to resignations from the board of directors and audit committee.
According to Nasdaq’s Listing Rule 5605(c)(2), the audit committee must consist of at least three independent members. However, the departure of Messrs. W. Steve Albrecht and Gbenga Oyebode from the board left SWVL’s audit committee with only one remaining member, leading to the non-compliance issue.
Taking swift action to rectify the situation, SWVL promptly addressed the deficiency. On May 17, 2023, Ayman Ismail Mohamed Ahmed Soliman was appointed to the company’s board of directors and audit committee.
This appointment bolstered the committee, fulfilling the requirement for three members. To further ensure compliance, Esther Dyson was appointed to serve on the audit committee on June 13, 2023.
These new appointments have garnered approval from Nasdaq staff, confirming that SWVL now complies with Listing Rule 5605(c)(2). Consequently, the matter concerning the deficiency has been officially closed.
SWVL is a globally recognized provider of tech-enabled mass transit solutions, operating in over 135 cities across 20 countries.
Founded in 2017 by Kandil and fellow Egyptian entrepreneur Ahmed Sabbah, the company’s mission is to alleviate traffic congestion in Cairo, Egypt’s capital city, and beyond. SWVL’s services include intercity, intracity, B2B, and B2G transportation.
While this compliance achievement is commendable, it comes at a time when SWVL has faced challenges. A report by Billionaires.Africa reveals that the Cairo-based global tech startup led by Kandil has lost its unicorn status, with its share price plummeting and market capitalization dropping by over $1.36 billion.
Economic uncertainty, tightening financial conditions, mounting operating costs, and listing expenses have contributed to widening losses and a diminished valuation. Despite these difficulties, SWVL has experienced remarkable growth under Kandil’s leadership.
The company boasts impressive gross revenue figures and market share, with over 1.4 million riders booking more than 46 million rides on its platform powered by a vast network of thousands of drivers.
