Alpine 4 Holdings, Inc. Announces Receipt of Nasdaq Staff Determination Letter
Alpine 4 Holdings (NASDAQ: ALPP) announced that it received a Staff Delisting Determination letter from Nasdaq on May 14, 2024, due to non-compliance with Nasdaq Listing Rule 5250(c)(1). The company failed to timely file its Quarterly Report for September 30, 2023, and Annual Report for December 31, 2023. Nasdaq granted an exception until May 13, 2024, but the company did not meet this deadline. Alpine 4 intends to appeal and request a stay of the suspension or delisting. The appeal must be made by May 21, 2024, which will automatically stay the suspension for 15 days. Hearings are typically scheduled 30-45 days after the appeal request. Alpine 4 is working diligently to file the overdue reports but cannot guarantee compliance before the hearing.
- Company is actively communicating with Nasdaq.
- Alpine 4 intends to appeal the Staff Determination.
- Company is working diligently with auditors to complete overdue reports.
- Alpine 4 can request a hearing, which stays the suspension for 15 days.
- Received a Staff Delisting Determination letter from Nasdaq.
- Failed to file Quarterly and Annual Reports on time.
- Granted exception until May 13, 2024, but missed the deadline.
- Risk of suspension or delisting from Nasdaq.
- No assurance that reports will be filed before the hearing.
- Uncertainty about the Nasdaq Hearing Panel's decision.
Insights
Alpine 4 Holdings has received a notification from Nasdaq that it is not currently in compliance with Nasdaq Listing Rule 5250(c)(1), which mandates timely filing of periodic financial reports with the SEC. The company has not filed its quarterly and annual reports, leading to a potential delisting.
Short-Term Implications: This situation could create immediate uncertainty among retail investors and institutional stakeholders. The potential delisting might lead to a
Long-Term Implications: If the company fails to regain compliance, it could face delisting from Nasdaq, which would significantly affect liquidity and could force investors to trade shares on an over-the-counter (OTC) market. This move typically results in lower trading volumes and can lead to reduced investor confidence.
Critical Analysis: It's essential to consider why the filings are delayed. Persistent issues could indicate operational inefficiencies or internal control weaknesses. Investors should closely watch for updates on the company's progress in meeting its filing deadlines and any outcomes from the Nasdaq hearing.
Rating: Given the seriousness of a potential delisting and the uncertainty it introduces, this news is rated as -1 (negative).
Legally, Alpine 4 Holdings has entered a precarious situation with Nasdaq due to non-compliance with filing requirements. They have indicated a plan to appeal the delisting determination, which will temporarily stay any delisting actions.
Short-Term Legal Considerations: The company's request for a hearing will buy them some time (typically 15 days from the date of request) to prepare their case. The hearing process can stretch out to 30-45 days, giving the company a window to file the overdue reports.
Long-Term Legal Considerations: If the company cannot file its reports before the hearing and if the hearing panel does not grant an extended stay, the delisting process could proceed. The implications of delisting extend beyond liquidity issues; it could trigger loan covenants and other financial agreements that require the company to be listed on a major exchange. Additionally, delisting might diminish shareholder value and expose the company to litigation risks from disgruntled investors.
Critical Analysis: The company's ability to navigate this legal process hinges on its communication with Nasdaq and its capacity to file the required reports swiftly. Transparency with stakeholders during this period is important to maintain some level of investor confidence.
Rating: Given the legal ramifications and procedural uncertainties, this news is rated as -1 (negative).
PHOENIX, AZ / ACCESSWIRE / May 17, 2024 / Alpine 4 Holdings, Inc (NASDAQ:ALPP) (the "Company"), announced today that on May 14, 2024, it received a Staff Delisting Determination letter (the "Staff Determination") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that Nasdaq has initiated a process which could result in the delisting of the Company's securities from Nasdaq as a result of the Company's not being in compliance with Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule"), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (the "SEC"). The Staff Determination has no immediate effect and will not immediately result in the suspension of trading or delisting of the Company's securities.
The Staff Determination was issued because the Company has not filed its Quarterly Report on Form 10-Q for the period ended September 30, 2023 (the "Quarterly Report"), or its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the "Form 10-K"). Based on materials submitted to Nasdaq by the Company on January 16, 2024, and May 2, 2024, the Nasdaq Staff granted the Company an exception until May 13, 2024, to regain compliance with the Listing Rule.
The Company has been in communication with the Nasdaq and intends to appeal the Staff Determination before a Nasdaq Hearing Panel and seek a further stay of any suspension or delisting action pending the hearing process in accordance with the procedures set forth in the Staff Determination Letter. The Company is working diligently with its auditors to complete the Quarterly Report and the Form 10-K and to file them with the SEC.
The Company's request for a hearing before the Nasdaq Hearing Panel to appeal the Staff Determination must be made no later than 4:00 p.m. EDT on May 21, 2024. The hearing request will automatically stay the suspension of the Company's securities for a period of 15 days from the date of the request. In connection with its request for a hearing, the Company also intends to request that the Staff Determination be further stayed pending the hearing process. According to the Staff Determination, hearings are typically scheduled to occur approximately 30-45 days after the date of a company's hearing request. Following the hearing, the Hearings Panel will issue a decision, which the Company may further appeal to the Nasdaq Listing Council for review. The Company is working diligently to file the delinquent periodic reports as soon as possible to regain compliance with the Listing Rule. However, there can be no assurance that such periodic reports will be filed before any hearing occurs or that the Nasdaq Hearing Panel will grant the Company's request for a stay pending the hearing process.
About Alpine 4 Holdings: Alpine 4 Holdings, Inc. is a Nasdaq traded holding company (trading symbol: ALPP) that acquires businesses that fit under one of several portfolios: Aerospace, Commercial Technologies, 3D Mapping Software and Manufacturing as either a Driver, Stabilizer or Facilitator from Alpine 4's disruptive DSF business model. Alpine 4 works to vertically integrate the various subsidiaries with one another even from different industries. Alpine 4 understands the nature of how technology and innovation can accentuate a business, focusing on how the adaptation of new technologies, even in brick-and-mortar businesses, can drive innovation. Alpine 4 also believes that its holdings should benefit synergistically from each other, have the ability to collaborate across varying industries, spawn new ideas, and create fertile ground for competitive advantages.
Four principles at the core of our business are Synergy. Innovation. Drive. Excellence. At Alpine 4, we believe synergistic innovation drives excellence. By anchoring these words to our combined experience and capabilities, we can aggressively pursue opportunities within and across vertical markets. We deliver solutions that not only drive industry standards, but also increase value for our shareholders.
Contact: Investor Relations
investorrelations@alpine4.com
www.alpine4.com
Forward-Looking Statements
This Report contains forward-looking statements that involve risks and uncertainties. For example, forward-looking statements include statements regarding the timing of the filing of the Company's filings, the Company's plan to appeal the Staff Determination, and the outcome of the Company's appeal. Actual results could differ materially from the results projected in or implied by the forward-looking statements made in this report. Factors that might cause these differences include, but are not limited to: the possibility of unanticipated delays that will prevent the filing of the Company's filings, the risk that the work necessary to complete the filings is greater than anticipated or may involve the resolution of additional issues identified during the review process, the outcome of the Company's appeal of the Staff Determination, the risk that the Company may not respond adequately to further inquiries from Nasdaq relating to the appeal, and the risk that Nasdaq will not accept any plan to regain compliance and will delist the Company's Class A common stock. Other risk factors that may impact these forward-looking statements are discussed in more detail in the Company's 2022 Annual Report on Form 10-K filed with the SEC on May 5, 2023. Copies of the Company's 2022 Annual Report and other periodic reports are available through the Company's Investor Relations department and website, alpine4.com. The Company expressly disclaims any obligation or intention to update these forward-looking statements to reflect new information and developments.
SOURCE: Alpine 4 Holdings, Inc.
View the original press release on accesswire.com
FAQ
Why did Alpine 4 Holdings (ALPP) receive a delisting determination letter?
What reports did Alpine 4 Holdings (ALPP) fail to file?
When must Alpine 4 Holdings (ALPP) appeal the Nasdaq determination?
What happens if Alpine 4 Holdings (ALPP) requests a hearing?
Can Alpine 4 Holdings (ALPP) guarantee compliance before the hearing?
