LISHUI, China - Tantech Holdings Ltd (NASDAQ: TANH), a company specializing in bamboo charcoal-based products and electric vehicles, announced today that it has regained compliance with Nasdaq's periodic filing requirements. The notification from The Nasdaq Stock Market LLC marks the closure of the compliance matter.
Tantech, which has been operating for over a decade, ventured into the electric vehicle market in 2017 after acquiring a majority stake in Shangchi Automobile. The company has since expanded its EV production, establishing subsidiaries Lishui Smart New Energy Automobile Co., Ltd. and Zhejiang Shangnilai Technology Co., Ltd. These subsidiaries focus on manufacturing and selling street sweepers and other electric vehicles.
The company's compliance with Nasdaq Listing Rule 5250(c)(1) comes after a period of non-compliance which had put its listing at risk. The rule requires timely filing of periodic financial reports as a condition for continued listing on the exchange.
Tantech Holdings has a diversified business model, which includes a subsidiary engaged in commercial factoring, First International Commercial Factoring (Shenzhen) Co., LTD. This subsidiary supports businesses related to Tantech's supply chain.
The company holds ISO 90000 and ISO 14000 certifications and has received multiple honors and awards for its products and scientific research. While Tantech's news release contains forward-looking statements, these are subject to various uncertainties and risks, including market demand, technological changes, economic conditions, competition, pricing, and government regulations.
The announcement is based on a press release statement from Tantech Holdings Ltd. The company has not provided any forward guidance or projections in this announcement. Investors are reminded that forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties.
In other recent news, Tantech Holdings Ltd, a producer of bamboo charcoal products and electric vehicles, has encountered several developments. The company was served a non-compliance notice by Nasdaq due to a delay in filing its annual report. The late filing pertains to the company's annual report on Form 20-F for the year ending December 31, 2023. Tantech has been granted a 60-day period to present a plan to regain compliance with Nasdaq's requirements.
In addition to this, Tantech has secured a private placement agreement with institutional investors to raise approximately $2.1 million in aggregate cash proceeds. The company will issue 4.2 million units, including pre-funded units, at a price of $0.50 per unit. Maxim Group LLC is the sole placement agent for this offering. These are some of the recent developments for Tantech Holdings Ltd.
InvestingPro Insights
Tantech Holdings Ltd (NASDAQ: TANH), while addressing compliance issues, also presents an interesting financial landscape as per the latest data from InvestingPro. The company's market capitalization stands at a modest $3.1 million USD, reflecting its position in the market. Notably, Tantech is trading at an extremely low Price to Earnings (P/E) ratio of 0.36, which drops even further to 1.3 when adjusted for the last twelve months as of Q4 2023.
This could indicate that the stock is undervalued compared to its earnings. Additionally, the company's Price to Book (P/B) ratio during the same period is 0.02, suggesting that the market price is close to the net asset value of the company, which is a metric some investors look for in identifying potential investment opportunities.
An InvestingPro Tip highlights that Tantech holds more cash than debt on its balance sheet, which is a positive sign of financial health and could provide a cushion against market volatility. Furthermore, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position that can support operations and strategic initiatives.
Despite these positive financial metrics, TANH has experienced significant price volatility. The stock has seen a notable return over the last month, with a 15.3% increase, yet it has also taken a significant hit over the last six months, with a price total return of -46.28%. Over the last year, the price has fallen by -77.09%, showing the stock's high volatility and the potential risks involved with investing in it.
Investors interested in a deeper analysis of Tantech Holdings can access additional InvestingPro Tips for a comprehensive understanding of the stock's potential. There are 11 more tips available, which can be found at https://www.investing.com/pro/TANH. For those looking to subscribe to InvestingPro for additional insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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