ChargePoint Receives Notice of Non-Compliance with New York Stock Exchange Trading Share Price Listing Rule

Rhea-AI Summary

ChargePoint (NYSE:CHPT) has received a notice of non-compliance from the NYSE on February 19, 2025, as its average closing stock price fell below $1.00 over a consecutive 30-day trading period. This notice represents a deficiency alert, not a delisting action, and does not immediately impact the company's listing or trading status.

The company must notify the NYSE by March 5, 2025, of its intention to cure the price deficiency. To regain compliance, CHPT needs to achieve a closing price of at least $1.00 and maintain an average closing price of $1.00 over a 30-day trading period within six months of receiving the notice. ChargePoint is considering various options, including a potential reverse stock split subject to stockholder approval at its next annual meeting, to address this situation.

Positive

• Stock continues to trade normally on NYSE during compliance period
• Company has 6 months to cure the price deficiency
• Multiple remedy options available, including reverse stock split

Negative

• Stock trading below $1.00 for 30 consecutive trading days
• Risk of potential delisting if compliance not achieved
• Possible reverse stock split may be needed, requiring shareholder approval

Insights

Financial Analyst

The NYSE non-compliance notice for ChargePoint represents more than just a technical listing challenge - it's a symptom of deeper market concerns about the company's business fundamentals and the broader EV charging infrastructure sector. Trading below $1.00 for an extended period typically indicates severe market skepticism about a company's business model and growth prospects.

While the company has multiple paths to regain compliance, including a reverse stock split, such corporate actions often mask rather than address underlying business challenges. Historical precedents show that companies implementing reverse splits without addressing fundamental issues frequently experience continued stock price deterioration post-split.

The timing is particularly challenging for ChargePoint as it coincides with broader market pressures in the EV charging sector, including:

• Intensifying competition from both established players and new entrants
• Ongoing challenges in achieving profitability in the charging infrastructure business model
• Capital market constraints affecting growth-stage companies

The six-month compliance window provides critical time for strategic alternatives, but also presents risks. Institutional investors often have internal policies restricting investments in stocks trading below $1.00, potentially limiting access to capital. Additionally, maintaining NYSE listing requirements is often tied to debt covenants and business partnerships, making this compliance issue more than just a technical matter.

The company's response will be crucial. While a reverse split might temporarily address the listing requirement, investors should focus on fundamental business metrics and strategic initiatives that could drive sustainable value creation. The market will be watching for signs of operational improvements, cost control measures, and strategic partnerships that could strengthen ChargePoint's competitive position in the evolving EV charging landscape.

Company Intends to Cure the Deficiency and Regain Compliance with NYSE

Notice Has No Immediate Impact on the Listing or Trading of ChargePoint’s Common Stock

CAMPBELL, Calif.--(BUSINESS WIRE)-- ChargePoint (NYSE:CHPT) (the “Company”), a leading provider of networked solutions for charging electric vehicles (EVs), announced today that it was notified by the New York Stock Exchange (the “NYSE”) on February 19, 2025, that it is not in compliance with Section 802.01C of the NYSE Listed Company Manual because the average closing price of the Company’s Common Stock ("the Common Stock") was less than $1.00 over a consecutive 30 trading-day period, which is the minimum average closing price required to maintain continued listing on the NYSE. The notice is a notice of deficiency, not delisting, and does not currently affect the listing or trading of the Company’s Common Stock on the NYSE.

The Company plans to notify the NYSE by March 5, 2025 that it intends to cure the average closing stock price deficiency and to return to compliance with the NYSE's continued listing standards. The Company can regain compliance at any time within the six-month period following receipt of the NYSE's notice if on the last trading day of any calendar month during the cure period, the Company has (i) a closing share price of at least $1.00 and (ii) an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.

The Company intends to consider available alternatives, including but not limited to, a reverse stock split, subject to stockholder approval no later than at the Company’s next annual meeting of stockholders, if necessary, to cure the stock price non-compliance. Under the NYSE’s rules, if the Company determines that it will cure the stock price deficiency by taking an action that will require stockholder approval at its next annual meeting of stockholders, the price condition will be deemed cured if the price promptly exceeds $1.00 per share, and the price remains above that level for at least the following 30 trading days.

The Company’s Common Stock will continue to be listed and trade on the NYSE during this period, subject to the Company’s ongoing compliance with the NYSE's other continued listing standards. Furthermore, the notice is not anticipated to impact the ongoing business operations of the Company or its reporting requirements with the U.S. Securities and Exchange Commission.

About ChargePoint Holdings, Inc.

ChargePoint is creating a new fueling network to move people and goods on electricity. Since 2007, ChargePoint has been committed to making it easy for businesses and drivers to go electric with one of the largest EV charging networks and a comprehensive portfolio of charging solutions. The ChargePoint cloud subscription platform and software-defined charging hardware are designed to include options for every charging scenario from home and multifamily to workplace, parking, hospitality, retail and transport fleets of all types. Today, one ChargePoint account provides access to hundreds-of-thousands of places to charge in North America and Europe. For more information, visit the ChargePoint pressroom, the ChargePoint Investor Relations site, or contact the ChargePoint North American press office or Investor Relations.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including statements regarding our ability to maintain the listing of the Company’s common stock on the NYSE and intention to consider alternatives to cure the Company’s NYSE continued listing requirement deficiency, including by actions that would require stockholder vote at its next annual stockholder meeting, the expected impacts of the deficiency notice and any potential to regain compliance with the continued listing standards of the NYSE. There are a significant number of factors that could cause actual results to differ materially from the statements made in this press release and additional risks and uncertainties that could affect our financial results or ability to comply with the NYSE continued listing requirements which are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) on December 6, 2024, which is available on our website at investors.chargepoint.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by applicable law.

CHPT-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20250221011949/en/

ChargePoint

John Paolo Canton

Vice President, Global Communications

JP.Canton@chargepoint.com

AJ Gosselin

Director, Corporate Communications

AJ.Gosselin@chargepoint.com

media@chargepoint.com

Nandan Amladi

Vice President, Finance and Investor Relations

investors@chargepoint.com

Source: ChargePoint

FAQ

What caused ChargePoint (CHPT) to receive NYSE non-compliance notice in February 2025?

ChargePoint received the notice because its average closing stock price was below $1.00 over a consecutive 30-day trading period, violating NYSE's minimum price requirement.

How long does CHPT have to regain NYSE compliance?

ChargePoint has a six-month period following the February 19, 2025 notice to regain compliance by achieving a closing price and 30-day average closing price of at least $1.00.

What options is ChargePoint (CHPT) considering to address the NYSE price deficiency?

ChargePoint is considering various options, including a potential reverse stock split that would require stockholder approval at the next annual meeting.

Will CHPT stock continue trading on NYSE during the compliance period?

Yes, ChargePoint's stock will continue trading on NYSE during the compliance period, provided it meets other NYSE listing standards.