Dragonfly Energy Holdings Corp. (NASDAQ:DFLI), a Nevada-based manufacturer in the electrical equipment sector, has been notified by The Nasdaq Stock Market LLC that it is currently not meeting a key listing requirement. Specifically, the company has failed to maintain the minimum Market Value of Listed Securities (MVLS) of $35 million required for continued listing on The Nasdaq Capital Market.
The notice, received on December 12, 2024, also indicated that Dragonfly Energy does not meet the alternative continued listing standards, which include a stockholders’ equity of $2.5 million or net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years.
Dragonfly Energy has been granted a 180-day compliance period, ending on June 10, 2025, to regain compliance with the MVLS requirement. During this period, the company's MVLS must reach at least $35 million for a minimum of ten consecutive business days to regain compliance. If the company fails to meet this requirement by the deadline, it may face delisting from The Nasdaq Capital Market.
The company's common stock and redeemable warrants will continue to trade on The Nasdaq Capital Market, under the symbols "DFLI" and "DFLIW", respectively, provided it complies with other listing requirements.
In response to the notice, Dragonfly Energy intends to monitor its MVLS and explore available options to regain compliance, though there is no guarantee of success. A potential delisting could negatively affect the market price and liquidity of the company's common stock and its ability to raise additional capital.
The information in this article is based on a recent SEC filing by Dragonfly Energy Holdings Corp.
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