Fly-E Group, Inc., a Delaware-based automotive company, has been notified by the Nasdaq Stock Market that it is not in compliance with the exchange's minimum bid price requirement, according to a recent SEC filing. The notice, received on Tuesday, October 2, 2024, states that Fly-E Group's common stock has closed below the required minimum $1.00 per share for 31 consecutive business days.
Despite the warning, trading of Fly-E Group’s shares, under the ticker symbol FLYE, continues on the Nasdaq Capital Market without interruption. The company, classified under the Motor Vehicles & Passenger Car Bodies industry, has been given until March 31, 2025, to address the bid price deficiency. To regain compliance, the stock must close at $1.00 or higher for at least 10 consecutive business days during the 180-day grace period.
Should Fly-E Group fail to meet the requirement by the March deadline, it may be eligible for an additional 180-day period to achieve compliance. This extension is contingent upon the company meeting all other initial listing standards for the Nasdaq Capital Market, except for the bid price. Fly-E Group may need to consider a reverse stock split or other measures to rectify the bid price shortfall.
In the event that the company does not comply with the minimum bid price requirement or is deemed ineligible for an extension, Nasdaq will initiate delisting procedures. However, Fly-E Group would then have the opportunity to appeal the decision before a Nasdaq hearings panel.
Fly-E Group's SEC filing, signed by Chief Executive Officer Zhou Ou on Friday, October 4, 2024, indicates the company's intent to closely monitor its stock's bid price and explore options to regain compliance with Nasdaq's Listing Rules. The information in this article is based on Fly-E Group's statement to the SEC.
In other recent news, Fly-E Group has reported significant developments. The company announced changes in its board composition, with the resignation of Alan Jacobs and the appointment of Zanfeng Zhang. Zhang, a finance and investment management expert, will fill the vacancy left by Jacobs.
Fly-E Group has also launched an e-bike rental service and joined New York City's trade-in program. The rental service, available through a mobile app and selected stores, offers a monthly plan at $199. In addition, the company plans to extend this service to cities including Miami, Toronto, and Los Angeles.
Furthermore, Fly-E Group is developing charging cabinets that adhere to government safety regulations. The Fly-11 Pro model e-bike has been selected for New York's trade-in program, providing delivery professionals with safer and affordable e-bikes.
Lastly, Fly-E Group is set to unveil three new electric motorcycle models, named DP, EK PRO, and DT, by the end of October. Catering to different segments of the electric motorcycle market, these models showcase the company's commitment to innovation and safety in the electric vehicle industry.
InvestingPro Insights
Recent InvestingPro data provides additional context to Fly-E Group's (FLYE) current situation. The company's stock has experienced significant declines, with a 6.98% drop in the past week and a staggering 90.79% fall over the last three months. This aligns with the Nasdaq's notification regarding the minimum bid price requirement.
InvestingPro Tips highlight that FLYE "operates with a significant debt burden" and "may have trouble making interest payments on debt." These factors could complicate the company's efforts to address its listing compliance issues. On a more positive note, "net income is expected to grow this year," which might provide some relief if the company can translate this into improved stock performance.
For investors seeking a deeper understanding of Fly-E Group's financial health and prospects, InvestingPro offers 15 additional tips that could be crucial in assessing the company's ability to overcome its current challenges and maintain its Nasdaq listing.
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