ONTARIO, CA – Phoenix Motor Inc., a manufacturer of truck and bus bodies, has received a notification from The Nasdaq Stock Market LLC indicating a non-compliance with the exchange's listing rules.
The notice, dated January 10, 2025, specifies that the company failed to conduct an annual meeting of shareholders within twelve months following the end of its fiscal year, breaching Nasdaq Listing Rule 5620(a). The company, with a market capitalization of approximately $10.5 million, has been facing significant challenges.
The company, which is incorporated in Delaware and headquartered in Ontario, California, trades on the Nasdaq Capital Market under the ticker symbol PEV. The stock, currently trading at $0.28, has experienced significant volatility, with InvestingPro data showing an 80% decline over the past year. With average daily trading volume of 1.45 million shares, the common stock continues to be actively traded on the market.
In response to the notice, Phoenix Motor Inc. is required to submit a plan to regain compliance within 45 calendar days. If Nasdaq accepts the company's plan, it may grant an extension of up to 180 calendar days from the fiscal year-end, or until June 30, 2025, for the company to meet the listing requirements.
The letter from Nasdaq does not immediately affect the company's stock listing, allowing trading to proceed as usual under the symbol PEV. However, the future of Phoenix Motor Inc.'s listing status hinges on the acceptance and successful execution of its compliance plan.
According to InvestingPro analysis, the company faces several challenges, including significant debt burden and rapid cash burn. InvestingPro subscribers have access to 14 additional key insights about PEV's financial health and market position through the comprehensive Pro Research Report.
The SEC filing also includes forward-looking statements cautioning that there is no assurance Nasdaq will accept the compliance plan or that the company will manage to regain compliance within the potential extension period. The company emphasizes that it intends to address the issue and submit the required plan within the given timeframe.
This report is based on the company's recent SEC filing and does not reflect any additional information or subsequent developments. Phoenix Motor Inc.'s management has not provided any further public comments on the matter at this time.
In other recent news, Phoenix Motor Inc. reported a remarkable surge in Q2 revenue, rising by 937% to $12.03 million and a decrease in net loss. The company's cash position has also strengthened, reaching $1.40 million.
Despite receiving a delinquency notice from Nasdaq due to the late filing of its quarterly financial report, Phoenix Motor has been given until January 21, 2025, to submit a plan to regain compliance. The company is actively working to file the overdue report to remain listed.
In terms of operations, Phoenix Motor has successfully delivered five 40' ZX5 battery electric buses to the University of California, Irvine and has secured a contract to supply four all-electic transit buses to the University of California San Diego in 2025.
Additionally, Phoenix Motor has partnered with the Bay Area Founders Club to establish an Artificial Intelligence development center in Silicon Valley, aiming to advance initiatives in electric and autonomous bus technologies.
These are recent developments in Phoenix Motor's journey, highlighting their commitment to growth in the electric vehicle market. Despite potential delisting from Nasdaq due to non-compliance with the exchange's minimum bid price requirement, the company has been granted an extension until April 7, 2025, to regain compliance.
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