SPI Energy Co., Ltd., a semiconductor company previously known as Solar Power, Inc., is facing delisting from the NASDAQ Capital Market after failing to meet the exchange's minimum bid price and filing requirements. On Monday, the company received a notice from NASDAQ's Listing Qualifications Department indicating that its securities would be delisted due to non-compliance with the Listing Rule 5550(a)(2), which mandates a minimum bid price of $1.00 per share.
In addition to the bid price issue, SPI Energy has not filed its annual report for the fiscal year ended December 31, 2023, nor its quarterly reports for the periods ended March 31, 2024, and June 30, 2024, violating NASDAQ Listing Rule 5250(c)(1). As a result, the company did not meet the extended deadline of October 14, 2024, set by NASDAQ to file these reports.
SPI Energy plans to appeal the delisting notice and has until Tuesday, October 22, 2024, to request a hearing with the NASDAQ Hearings Panel. The appeal will stay the suspension of the company's securities temporarily, with the hearings expected to occur approximately 30-45 days after the hearing request is made. The company aims to address the compliance issues and request an extended stay of suspension pending the hearing's outcome.
This development follows a previous warning from NASDAQ in October 2023, indicating that the company's share price had fallen below the $1.00 threshold for 30 consecutive business days. SPI Energy attempted to regain compliance during the initial 180-day grace period and later transferred its listing from The NASDAQ Global Select Market to The NASDAQ Capital Market to secure an additional 180-day period to meet the bid price requirement.
In other recent news, SPI Energy Co., Ltd., a global renewable energy company, is grappling with Nasdaq compliance issues due to delayed financial report filings. The company has failed to submit its Quarterly Report for the quarter ending June 30, 2024, following previous delays with its Annual Report for 2023 and its Q1 2024 Quarterly Report. Nasdaq's Listing Qualifications Department has notified SPI Energy of its non-compliance with Nasdaq Listing Rule 5250(c)(1), which necessitates timely filing of periodic financial reports with the Securities and Exchange Commission (SEC).
However, Nasdaq has given SPI Energy until October 14, 2024, to file the overdue reports and regain compliance. SPI Energy must also submit an updated compliance plan by September 4, 2024, detailing steps to file the Q2 report and progress on the previously submitted plan. If the updated plan fails to meet acceptance, SPI Energy has the option to appeal to a Nasdaq Hearings Panel.
InvestingPro Insights
Recent InvestingPro data sheds light on SPI Energy's current financial situation, providing context to the company's delisting challenges. The company's market capitalization stands at a modest $18.47 million, reflecting its small-cap status. SPI's stock has experienced significant volatility, with a strong 40.8% return over the last month, contrasting sharply with an 8.56% decline in the past week. This volatility aligns with an InvestingPro Tip indicating that the stock generally trades with high price volatility.
Another InvestingPro Tip reveals that SPI is quickly burning through cash, which may explain the company's struggle to meet NASDAQ's listing requirements and filing deadlines. Despite these challenges, analysts predict the company will be profitable this year, offering a glimmer of hope for potential recovery.
For investors seeking a deeper understanding of SPI Energy's situation, InvestingPro offers 8 additional tips that could provide valuable insights into the company's prospects and challenges. These additional tips could be particularly useful in assessing the potential outcomes of SPI's appeal against delisting and its future market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.