HONG KONG - Roma Green Finance Limited (NASDAQ: ROMA), a company specializing in ESG and sustainability advisory services, announced today that it has received a notice from the Nasdaq Stock Market indicating non-compliance with the minimum bid price requirement. The company's ordinary shares have fallen below the $1.00 threshold set by Nasdaq's Listing Rules.
The notice does not immediately impact Roma Green Finance's listing on the Nasdaq Capital Market, where its shares continue to trade under the ticker "ROMA." The company has been given a 180-day period, until November 13, 2024, to regain compliance. To meet the requirements, the closing bid price of the ordinary shares must be at least $1.00 for a minimum of ten consecutive business days.
Roma Green Finance is considering various strategies to address the issue, including the possibility of a reverse stock split. If compliance is not achieved by the deadline, the company may be eligible for an additional 180-day period to satisfy the Nasdaq's conditions.
The Hong Kong-based firm provides a range of services related to environmental, social, and governance (ESG) matters, including sustainability program development, ESG reporting, and climate change strategies. It also supports clients in improving their ESG ratings with agencies like Bloomberg.
The information in this article is based on a press release statement from Roma Green Finance Limited.
InvestingPro Insights
Roma Green Finance Limited (NASDAQ: ROMA), while navigating the challenges of meeting Nasdaq's minimum bid price requirement, shows a complex financial landscape according to recent data from InvestingPro. The company's market capitalization stands at a modest $8.24 million, reflecting the market's current valuation of the firm. Notably, ROMA's stock has experienced significant price volatility, a factor that prospective investors should consider, especially given the stock’s substantial decline over the past year, with a one-year price total return of -72.76% as of the most recent data.
Despite the company's efforts in the growing ESG advisory market, ROMA has not been profitable over the last twelve months, and its short-term obligations exceed its liquid assets. The price of ROMA’s shares has fallen to $0.79, which is below the Nasdaq's minimum bid price requirement and significantly below the 52-week high, representing only 6.69% of that value. This underscores the urgency for the company to explore strategic options like a reverse stock split to bolster its share price.
InvestingPro Tips suggest that while ROMA holds more cash than debt, which is a positive sign of liquidity, the company does not pay a dividend to shareholders, which could be a consideration for income-focused investors. Additionally, with a P/E ratio of -23.12, and an adjusted P/E ratio for the last twelve months as of Q2 2024 sitting at -30.95, the company is trading at high valuation multiples despite its revenue contraction of -11.72% over the same period.
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