EzFill Holdings Inc (NASDAQ:EZFL), a retail-auto dealer and gasoline station operator with a market capitalization of $21.24 million, has been notified by The Nasdaq Stock Market LLC that it no longer meets Nasdaq's continued listing requirements.
According to InvestingPro analysis, while the company shows strong revenue growth of 19.14% over the last twelve months, it currently faces profitability challenges. The notice, received on Friday, is due to the company's failure to hold its annual stockholders' meeting within the stipulated timeframe following the end of its fiscal year on December 31, 2023.
According to Nasdaq rules, companies are expected to convene an annual meeting of stockholders no later than one year after the end of their fiscal year. EzFill Holdings missed this deadline, prompting the warning from Nasdaq's Listing Qualifications Staff.
The company, which is based in Miami, Florida, has 45 days to submit a plan to regain compliance. If the plan is accepted by Nasdaq, EzFill Holdings may be granted an extension of up to 180 days from the original deadline of December 31, 2024, to meet the annual meeting requirement, potentially until June 30, 2025. InvestingPro data reveals the company maintains a healthy current ratio of 1.94, though it's currently burning through cash with negative EBITDA of $6.09 million.
While EzFill Holdings intends to submit a compliance plan promptly, there is no certainty that the plan will be accepted by Nasdaq or that the company will meet the annual meeting requirement within any granted extension period. Should the plan be rejected, EzFill Holdings will have the right to appeal the decision before a Nasdaq Hearings Panel.
In efforts to address the issue, the company has scheduled its annual meeting of stockholders for January 16, 2025. A definitive proxy statement concerning this meeting was filed with the Securities and Exchange Commission on December 31, 2024.
This development is based on a press release statement from EzFill Holdings and highlights the company's current regulatory challenges with Nasdaq. It remains to be seen how the company will navigate this compliance issue and what impact it may have on its continued listing on the exchange. InvestingPro subscribers can access 10+ additional insights about EZFL's financial health and market position, including detailed valuation metrics and growth forecasts.
In other recent news, EzFill Holdings Inc. has secured significant funding through a series of loans and promissory notes from NextNRG Holding Corp. The company has received a $580,000 loan, $990,000 in promissory notes, and a $181,500 loan, all aimed at bolstering its working capital needs. These financial developments are part of EzFill's ongoing relationship with NextNRG, with the CEO of NextNRG, Michael Farkas, being a major shareholder in EzFill.
In addition to these financial maneuvers, EzFill has announced its plans to acquire the fueling division of Yoshi, Inc., a strategic move expected to enhance its national expansion efforts. The acquisition is set to integrate Yoshi Mobility's assets, field technicians, and customer base into EzFill's existing infrastructure.
On the stock front, EzFill has revised its agreement with NextNRG Holding Corp. shareholders, adjusting the total shares to be issued from 40 million to 100 million as part of its planned acquisition of NextNRG. The company has also regained compliance with Nasdaq's equity rule, converting approximately $13.5 million of its debt into equity through agreements with NextNRG Holding Corp and AJB Capital Investments.
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