LISHUI, China - CN Energy Group Inc. (NASDAQ: CNEY), a producer of recyclable activated carbon and renewable energy, disclosed today that it has received a notification from Nasdaq regarding non-compliance with the exchange's minimum market value requirement. The notice, dated September 6, 2024, stated that the company's Class A Ordinary Shares failed to meet the Nasdaq's minimum Market Value of Publicly Held Shares (MVPHS) threshold of $1,000,000 for 30 consecutive business days.
The current status does not affect the trading of CN Energy's shares, which will continue to be listed on Nasdaq under the ticker "CNEY." The company has been granted an initial period of 180 calendar days, until March 5, 2025, to regain compliance with the MVPHS requirement. Compliance can be achieved if the market value of CN Energy's publicly held shares reaches or exceeds the $1 million mark for at least ten consecutive business days within this period.
Should CN Energy fail to meet the MVPHS requirement by the compliance deadline, it risks delisting from the Nasdaq. However, the company has the option to apply for a transfer of its securities to The Nasdaq Capital Market if necessary. CN Energy intends to monitor its MVPHS and may explore available options to regain compliance.
CN Energy specializes in utilizing patented technologies to convert forest and agricultural residues into high-quality activated carbon and renewable energy, serving various industries including food and beverage, industrial, pharmaceutical, and environmental protection.
This information is based on a press release statement from CN Energy Group Inc. Investors are encouraged to consider the company's SEC filings for a more detailed understanding of potential risks and uncertainties that may affect the company's future outlook.
InvestingPro Insights
In light of CN Energy Group Inc.'s recent notice from Nasdaq regarding market value non-compliance, a closer look at the company's financial health and stock performance can offer investors further context. Based on real-time data from InvestingPro, CN Energy's market capitalization stands at a modest $3.37 million, reflecting challenges in reaching the Nasdaq's MVPHS threshold. The company's Price / Book multiple as of the last twelve months ending Q4 2023 is notably low at 0.01, potentially signaling undervaluation to investors seeking entry points in the market.
However, CN Energy's financial metrics also reveal areas of concern. The company's Gross Profit Margin over the same period was just 1.02%, indicating struggles in maintaining profitability amidst operational costs. Moreover, the company has been grappling with a significant debt burden, which, coupled with weak gross profit margins, may pose challenges in sustaining its financial position in the long term.
InvestingPro Tips highlight that CN Energy is not only trading at a low revenue valuation multiple but also may have difficulty making interest payments on its debt. For investors considering the potential turnaround of CN Energy, it is important to note that the company is expected to be profitable this year, according to analysts. These insights, among others, can be further explored with additional tips available on InvestingPro, providing a more comprehensive analysis for those looking to make informed investment decisions. In total, there are 17 InvestingPro Tips listed for CN Energy, offering a deeper dive into the company's financial nuances.
The company's recent stock performance has seen a decline, with the price having fallen significantly over the last year. Nevertheless, the company's liquid assets exceed its short-term obligations, which could provide some cushion against immediate financial stress. As CN Energy navigates its path to regaining compliance with Nasdaq's requirements, these financial metrics and insights from InvestingPro may serve as valuable tools for investors monitoring the company's progress.
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