Phoenix Motor Inc (NASDAQ:PEV), an automotive company, has been notified of non-compliance with Nasdaq's minimum bid price requirement, according to an 8K filing released on April 12, 2024. The Nasdaq Listing Qualifications Department issued a Deficiency Letter after the company's common stock closed below the required $1 per share for 30 consecutive business days.
Despite the warning, Phoenix Motor's stock will continue to trade on the Nasdaq Capital Market under the ticker PEV. The company has been granted a 180-day period, until October 9, 2024, to meet the minimum bid price condition. Compliance can be achieved if the stock's bid price closes at or above $1.00 per share for at least 10 consecutive business days before the deadline.
If Phoenix Motor fails to comply by October 9, it may be granted an additional 180 days, provided it satisfies all other initial listing standards for the Nasdaq Capital Market, except for the bid price. The company may consider a reverse stock split among other options to address the deficiency.
Phoenix Motor has expressed its intention to monitor its stock's closing bid price closely and to explore all available options to regain compliance with Nasdaq's listing requirements. However, there is no guarantee that the company will be able to maintain its compliance with the Nasdaq listing standards. If the company is unable to meet the requirements by the specified date and is not eligible for an extension, it will receive a written notice of delisting, which it can appeal to a Nasdaq hearings panel.
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