MCCLELLAN PARK, CA - SPI Energy Co., Ltd. (NASDAQ:SPI), a global renewable energy firm, is confronting delisting from the Nasdaq Capital Market due to non-compliance with certain listing rules. The company received a Staff Determination from the Nasdaq Listing Qualifications Department indicating that SPI Energy had not regained compliance with Listing Rule 5550(a)(2) regarding minimum share price, nor had it met the terms of the exception for the Filing Rule 5250(c)(1), which mandates timely filing of periodic reports with the SEC.
The Staff Determination, which has no immediate effect on the listing of the company's common stock, pointed out SPI Energy's failure to file its Form 10-K for the year ended December 31, 2023, and its Forms 10-Q for the quarters ended March 31, 2024, and June 30, 2024, by the deadline of October 14, 2024. These omissions serve as additional grounds for potential delisting.
SPI Energy has submitted a request for a hearing before the Nasdaq Hearings Panel, which is typically scheduled within 30-45 days after the request. The hearing request temporarily stays the suspension of the company's securities for 15 days, with the possibility for SPI Energy to request an extension pending the outcome of the hearing.
Founded in 2006 and headquartered in McClellan Park, California, SPI Energy operates through divisions offering EPC services, solar project ownership and operation, renewable energy system solutions, and solar wafer manufacturing, among other green energy initiatives.
The company plans to address the compliance issues stated in the Staff Determination and will follow the procedures for the Panel hearing. This announcement is in line with Nasdaq Listing Rule 5810(b), which necessitates prompt disclosure of a notification of deficiency.
The press release from SPI Energy also contains forward-looking statements, indicating that there can be no assurance of regaining compliance with Nasdaq's rules or preventing delisting. The company has expressed its intention to fulfill the conditions set by Nasdaq and to continue its operations in the renewable energy sector. This information is based on a press release statement issued by SPI Energy.
In other recent news, SPI Energy Co., Ltd. is facing potential delisting from the NASDAQ Capital Market due to non-compliance with listing rules. The semiconductor company failed to meet NASDAQ's minimum bid price and filing requirements, and has yet to file its annual report for the fiscal year ended December 31, 2023, along with its quarterly reports for periods ended March 31, 2024, and June 30, 2024. These lapses led to a violation of NASDAQ Listing Rule 5250(c)(1), resulting in a missed extended deadline of October 14, 2024, set by NASDAQ for report submissions.
SPI Energy has been given the opportunity to appeal the delisting notice and must request a hearing with the NASDAQ Hearings Panel by October 22, 2024. The appeal process will temporarily stay the suspension of the company's securities, with hearings expected to occur approximately 30-45 days after the hearing request.
In addition to these developments, SPI Energy has been grappling with other NASDAQ compliance issues due to delayed financial report filings. The company has been granted an extension until October 14, 2024, to file overdue reports and regain compliance, and must submit an updated compliance plan by September 4, 2024. If this updated plan is not accepted, SPI Energy has the option to appeal to a NASDAQ Hearings Panel.
InvestingPro Insights
As SPI Energy grapples with potential delisting from Nasdaq, InvestingPro data provides additional context to the company's financial situation. The company's market capitalization stands at a modest $13.84 million, reflecting its current challenges. The stock has taken a significant hit recently, with a -25.06% return in the past week, aligning with the news of potential delisting. This volatility is further emphasized by the stock trading at just 35.4% of its 52-week high.
Despite these challenges, InvestingPro Tips suggest that analysts predict the company will be profitable this year. This potential turnaround could be crucial for SPI Energy as it seeks to address its compliance issues with Nasdaq. The company is currently trading at a low revenue valuation multiple, which might attract investors looking for undervalued opportunities in the renewable energy sector.
It's worth noting that SPI Energy is quickly burning through cash, according to another InvestingPro Tip. This could exacerbate the company's challenges in meeting Nasdaq's compliance requirements and maintaining its operations. The company does not pay a dividend to shareholders, which is not uncommon for growth-oriented firms in the renewable energy sector but may limit its appeal to income-focused investors.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for SPI Energy, providing a more comprehensive view of the company's financial health and market position.
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