Rent The Runway, Inc. (RENT) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Rent The Runway, Inc. faces a significant business risk if its Class A common stock falls into the category of “penny stock” as defined by the SEC, with a market price under $5.00. Such a classification, following a potential delisting from the Nasdaq Capital Market, would subject the stock to stringent sales practice requirements for broker-dealers. This regulatory burden could inhibit broker-dealers’ ability to trade Rent The Runway’s shares, consequently complicating the process for investors to buy or sell shares on the secondary market, potentially diminishing liquidity and investor interest.
The average RENT stock price target is $21.00, implying 9.20% upside potential.
To learn more about Rent The Runway, Inc.’s risk factors, click here.
