SINGAPORE - Primech Holdings Limited (NASDAQ:PMEC), a Singapore-based facilities services provider, has been notified by the Nasdaq Stock Market of non-compliance with the exchange's minimum bid price requirement. The company's stock has been trading below the $1.00 minimum bid price for 30 consecutive business days, triggering a delinquency notice from Nasdaq.
The notice, dated May 14, 2024, outlines that Primech Holdings has 180 calendar days, until November 11, 2024, to address the bid price deficiency. The company's ordinary shares will continue to trade on the Nasdaq Capital Market during this grace period under the ticker "PMEC."
To regain compliance, the bid price of Primech's ordinary shares must close at or above $1.00 per share for at least 10 consecutive business days before the November deadline. If the company fails to meet this requirement, it may be granted additional time to comply or potentially face delisting from the exchange.
The Nasdaq's Listing Rule 5550(a)(2) mandates that listed securities maintain a minimum bid price of $1.00 per share. Non-compliance with this rule can lead to delisting if not rectified within the allowed timeframe.
This development has no immediate impact on Primech's business operations, and the company's shares will remain actively traded. Primech Holdings is recognized for its technology-driven approach to facilities services, including maintenance, specialized cleaning, and stewarding services. The company also manufactures and supplies cleaning products, emphasizing sustainability and smart technology solutions.
InvestingPro Insights
As Primech Holdings Limited (NASDAQ:PMEC) faces challenges with Nasdaq's minimum bid price requirement, recent data from InvestingPro provides further insights into the company's financial health and stock performance. With a market capitalization of just 22.23 million USD, the company's size is relatively small, which can contribute to higher price volatility, as reflected in the significant price drops over various periods. In the last three months, the stock has experienced a precipitous decline of 70.5%, and over the past six months, the total price return has decreased by a staggering 82.58%.
Primech's financial metrics show a company that is currently not profitable, with an adjusted P/E ratio for the last twelve months as of Q2 2024 standing at -4.84. The company's gross profit margin during the same period is relatively weak at 11.73%, which may raise concerns about its pricing power and cost management. Additionally, the company does not pay a dividend, which could be a factor for income-focused investors to consider.
Two InvestingPro Tips for PMEC are particularly relevant in light of the recent notification from Nasdaq. First, the stock generally trades with high price volatility, which could be a risk factor for investors. Second, the company has not been profitable over the last twelve months, which may be contributing to the pressure on its share price. For investors seeking a deeper analysis of Primech Holdings and additional InvestingPro Tips, they can access more than 6 additional tips on the company's performance and prospects by visiting https://www.investing.com/pro/PMEC. To enhance their InvestingPro experience, users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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