SINGAPORE - Premium Catering (Holdings) Limited (NASDAQ:PC), a Singapore-based catering company with a current market capitalization of just $12.8 million, has been notified of non-compliance with Nasdaq's minimum market value requirement for continued listing on the Nasdaq Capital Market. The company disclosed receiving a notice from Nasdaq indicating that its market value of listed securities had fallen below the required threshold of $35 million. According to InvestingPro data, the stock has experienced a dramatic 78.5% decline over the past year.
The notice, known as the MLVS Notice, specifies that Premium Catering has 180 days, until June 9, 2025, to regain compliance. To do so, the company's market value must close at or above $35 million for at least ten consecutive business days. If Premium Catering meets this requirement before the deadline, Nasdaq will provide written confirmation of compliance, and the matter will be closed.
Additionally, on December 11, 2024, Premium Catering received a Minimum Bid Price Notice from Nasdaq. The notice stated that the company's ordinary shares had not maintained the minimum bid price of $1.00 over the previous 30 consecutive business days, as required by Nasdaq's listing rules. Similar to the market value requirement, the company has 180 days to regain compliance with the bid price requirement.
Despite these notices, there is no immediate effect on the trading of Premium Catering's ordinary shares, which continue to be listed on the Nasdaq Capital Market under the ticker symbol "PC." The company is considering options to address the non-compliance, which may include a reverse stock split.
However, the MLVS Notice also highlighted that Premium Catering does not meet other listing requirements, specifically an equity standard of maintaining stockholders' equity of at least $2.5 million and a net income standard related to its continuing operations.
Premium Catering, known for its certified Halal food catering specializing in Indian, Bangladesh, and Chinese cuisine, has been operating for over 11 years in Singapore. The company supplies meals to foreign construction workers, operates food stalls, provides buffet services for private functions, and offers delivery services. Since 2019, they have introduced smart incubators for contactless meal delivery. InvestingPro analysis reveals concerning financial metrics, including a weak gross profit margin of 13% and a current ratio of 0.28, indicating potential liquidity challenges. For deeper insights into Premium Catering's financial health and 8 additional key metrics, consider exploring InvestingPro's comprehensive analysis tools.
This news is based on a press release statement and does not constitute an immediate threat to the company's listing status. However, failure to regain compliance by the Compliance Deadlines could lead to further action by Nasdaq, including possible delisting. Based on InvestingPro's Fair Value analysis, the stock appears to be overvalued at current levels, with additional challenges reflected in its negative EBITDA of -$1.02 million for the last twelve months.
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