GEELONG, Australia - Carbon Revolution plc (NASDAQ:CREV), a manufacturer of lightweight carbon fiber automotive wheels, has been notified by the Nasdaq Stock Market of non-compliance with its listing rules due to a delay in filing its annual report. The company has until January 21, 2025, to submit a plan to regain compliance, with the possibility of an extension until May 14, 2025.
The notification, which does not immediately affect the trading of Carbon Revolution's shares or warrants, follows the company's failure to file its Annual Report for the fiscal year ended June 30, 2024. In response, Carbon Revolution is working to file the report promptly to comply with Nasdaq Listing Rule 5250(c)(1).
Carbon Revolution is recognized as a Tier 1 OEM supplier, providing advanced technology lightweight wheels to high-performance, premium, and luxury segments of the automotive industry. The company's growth trajectory has seen it progress from prototype development to supplying global automotive brands.
The Nasdaq letter outlined that if the company's plan to regain compliance is not accepted, Carbon Revolution will have the opportunity to appeal the decision. The company's management has not indicated the reasons for the delay or provided a specific timeline for the submission of the compliance plan.
Investors and stakeholders are watching closely as the company navigates this compliance issue, which is a critical aspect of maintaining its listing on the Nasdaq exchange. This announcement is based on a press release statement from Carbon Revolution.
In other recent news, Carbon Revolution, a premier manufacturer of lightweight automotive carbon fiber wheels, has successfully secured an additional $5 million in funding. This financial boost, part of an arrangement with OIC, brings the total funds released to $30 million. The company aims to utilize these funds to expand its production capacity and meet the rising demand from its Original Equipment Manufacturer (OEM) customers.
Recent deals to supply carbon fiber wheels for the new Chevrolet Corvette ZR1 and Edition 2 Range Rover Sport SV underline the company's growth trajectory. Despite a projected quarter-over-quarter downturn for the third quarter due to seasonal factors, Carbon Revolution's revenue for the first half of fiscal year 2024 has nearly surpassed the total from the previous fiscal year.
However, increased costs and NASDAQ listing expenses have impacted earnings before interest, taxes, depreciation, and amortization (EBITDA), and earnings per share (EPS). Despite these challenges, analyst firm Craig-Hallum maintains a 'Buy' rating on Carbon Revolution's stock, noting the company's robust backlog exceeding $700 million and an expanding OEM pipeline. These developments highlight the company's continued efforts to innovate and serve global automotive manufacturers.
InvestingPro Insights
Carbon Revolution's recent Nasdaq non-compliance notification comes amid challenging financial circumstances for the company. According to InvestingPro data, Carbon Revolution has experienced significant stock price declines, with a 90.01% drop in the past year and a 60.38% fall in the last three months. This downward trend aligns with the company's current regulatory challenges.
InvestingPro Tips highlight that Carbon Revolution "operates with a significant debt burden" and "may have trouble making interest payments on debt." These factors could be contributing to the delay in filing the annual report and may pose additional challenges as the company works to regain compliance with Nasdaq listing rules.
Despite these hurdles, an InvestingPro Tip indicates that "analysts anticipate sales growth in the current year." This projection of revenue growth, coupled with the reported 107.37% quarterly revenue growth, suggests that Carbon Revolution's core business of supplying lightweight carbon fiber wheels to premium automotive brands may still have potential for expansion.
It's worth noting that InvestingPro offers 17 additional tips for Carbon Revolution, providing investors with a more comprehensive analysis of the company's financial health and market position. These insights could be particularly valuable as stakeholders assess the company's ability to address its compliance issues and maintain its Nasdaq listing.
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