Presto Automation, a supplier of voice AI software for drive-thrus, has been delisted from Nasdaq for violating the stock exchange’s rules.
Presto joined the tech-focused exchange in September 2022, when it went public with hopes of automating the restaurant industry. But its stock price began to decline sharply late last year, putting it at odds with a Nasdaq rule that requires shares to trade for a minimum of $1.
Presto was given time to get back into compliance and was scheduled to meet with Nasdaq this week to appeal the delisting. But on Monday it withdrew that appeal and will be removed from the exchange tomorrow.
It is not necessarily an unwelcome development for Presto. When the company went public, it had an established business selling tabletop ordering tablets to full-service restaurants. But it has since abandoned that to focus solely on drive-thru AI, a technology still in its infancy.
“On reflection, I don’t think this company is best served on the Nasdaq currently,” interim CEO Gee Lefevre said in an interview last month. “For a company of our size and where we’re at in our cycle, there are a lot of fair requirements of a very professional exchange which actually weighed quite heavily on the business.”
Presto will still be a public company with shares traded “over the counter." That won’t affect its operations or business, it said in an SEC filing. However it said it could not predict how it would impact the liquidity of its stock.
The San Carlos, California-based company has been in financial limbo for months as it overhauled its business model. It has been given several extensions on its repayment obligations by lender Metropolitan Partners, and is now facing a takeover by the lender if it is unable to find a buyer for its debt by Sept. 15. Metropolitan could then choose to sell the company or find new investors.
Presto’s AI voice assistant allows restaurants to automate drive-thru order taking. It is used by chains including Carl’s Jr. and Taco John’s.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.