Smart Powerr Corp. (NASDAQ:CREG), a business services company, received a notice on September 24, 2024, from the Nasdaq Stock Market indicating non-compliance with the minimum bid price requirement. The company's common stock has closed below the required $1.00 per share for 37 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
Despite the notice, Smart Powerr Corp.'s stock remains listed on the Nasdaq Capital Market. The firm has until March 24, 2025, to rectify the situation and meet Nasdaq's minimum bid price condition. To achieve compliance, the company's stock must maintain a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading days.
If Smart Powerr Corp. fails to meet the requirement by the March deadline, it may be eligible for an additional 180-day period to demonstrate compliance. This extension would be contingent on the company meeting other initial listing standards for the Nasdaq Capital Market, except for the bid price. Smart Powerr Corp. would also need to inform Nasdaq of its plans to resolve the deficiency, potentially through a reverse stock split.
The company has expressed its intention to take appropriate measures to regain compliance with Nasdaq's listing rules. However, there is no guarantee that Smart Powerr Corp. will be able to conform to the continued listing criteria or rectify the minimum bid price shortfall within the given timeframe. If the company ultimately fails to comply, Nasdaq will issue a delisting notice.
InvestingPro Insights
Recent InvestingPro data sheds light on Smart Powerr Corp.'s (NASDAQ:CREG) financial position, providing context to its Nasdaq listing challenges. The company's market capitalization stands at a modest $7.11 million, with a price-to-book ratio of just 0.07 as of the last twelve months ending Q2 2024. This extremely low valuation relative to book value aligns with an InvestingPro Tip indicating that CREG is "Trading at a low Price / Book multiple."
The company's financial health appears precarious, with an operating income of -$0.9 million over the same period. This negative profitability is reflected in another InvestingPro Tip, which notes that CREG is "Not profitable over the last twelve months." This financial strain likely contributes to the stock's difficulty in maintaining the Nasdaq's minimum bid price requirement.
CREG's stock performance has been notably weak, with a year-to-date price total return of -45.17% as of the latest data. This poor performance is consistent with an InvestingPro Tip stating that the "Price has fallen significantly over the last three months." These insights provide valuable context to the company's current Nasdaq compliance issues and the challenges it faces in regaining the required $1.00 per share minimum bid price.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for CREG, providing a deeper understanding of the company's financial situation and market position.
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