CNEY Receives NASDAQ Minimum Bid Price Requirement Extension

Rhea-AI Summary

CN Energy Group (NASDAQ: CNEY) has received a 180-day extension from Nasdaq until May 27, 2025, to regain compliance with the minimum $1.00 bid price requirement. The extension was granted based on CNEY meeting all other Nasdaq Capital Market listing requirements except the minimum bid price, and the company's written intention to cure the deficiency.

To regain compliance, CNEY's closing bid price must meet or exceed $1.00 for at least ten consecutive business days during this period. The company is considering various options, including a potential reverse stock split, to resolve the deficiency.

Positive

• Received additional 180-day extension to maintain Nasdaq listing
• Meets all other Nasdaq Capital Market listing requirements except bid price

Negative

• Continues to trade below $1.00 minimum bid requirement
• May need to implement reverse stock split, potentially leading to share dilution
• Risk of delisting if compliance is not achieved by May 27, 2025

Insights

Financial Analyst

The NASDAQ extension for CNEY represents a critical but challenging situation. With a market cap of just $2.37 million, the company faces significant hurdles in meeting the $1 minimum bid requirement. The extension until May 27, 2025, provides temporary relief, but the company's mention of a potential reverse stock split signals potential share dilution risks.

The micro-cap status and continued listing challenges raise serious concerns about the company's market viability. While the extension prevents immediate delisting, investors should note that reverse splits often lead to further price deterioration. The company's ability to naturally achieve and maintain the minimum bid requirement appears questionable given its current market position and trading history.

LISHUI, China, Dec. 3, 2024 /PRNewswire/ -- CN Energy Group. Inc. (NASDAQ: CNEY) ("CNEY" or the "Company") today announced that on November 26, 2024, the Company received a written notice from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that, while the Company has not regained compliance with the minimum $1.00 bid price per share requirement (the "Minimum Bid Price Requirement"), Nasdaq has determined that the Company is eligible for an additional 180 calendar day period, or until May 27, 2025 (the "Second Compliance Period"), to regain compliance. Nasdaq's determination was based on (i) the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq Capital Market, with the exception of the Minimum Bid Price Requirement, and (ii) the Company's written notice to Nasdaq of its intention to cure the deficiency during the Second Compliance Period by effecting a reverse stock split, if necessary.

If at any time during the Second Compliance Period, the closing bid price of the Company's Class A ordinary shares meets or exceeds US$1.00 per share for at least ten consecutive business days, Nasdaq will provide written confirmation of compliance, and this matter will be closed.

The Company intends to continue to actively monitor its compliance with the Minimum Bid Price Requirement and, as appropriate, will consider available options to resolve any deficiencies and regain compliance, including the implementation of a reverse share split, if necessary.

About CN Energy Group. Inc.

CN Energy Group. Inc. is currently listed on NASDAQ under the symbol "CNEY." With patented proprietary bioengineering and physiochemical technologies, CNEY has pioneered and specialized in producing high-quality recyclable activated carbon and renewable energy from abandoned forest and agricultural residues, converting harmful wastes into invaluable wealth and delivering significant financial, economic, environmental and ecologic benefits.  CNEY's products and services have been widely used by food and beverage producers, industrial and pharmaceutical manufacturers, as well as environmental protection enterprises. For more information, please visit the Company's website at www.cneny.com.

Forward-Looking Statements

Certain statements, other than statements of historical facts, made in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, including the further spread of the COVID-19 virus or new variants thereof, or the occurrence of another wave of cases and the impact it may have on the Company's operations and the demand for the Company's products, and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial conditions, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will, " "expect, " "anticipate, " "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to refer to its filings with SEC, including without limitation, Company's registration statements and other filings with the SEC that set forth certain risks and uncertainties that may have an impact on future results and directions of the Company.

 

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SOURCE CN Energy Group. Inc.

FAQ

What is the deadline for CNEY to meet Nasdaq's minimum bid price requirement?

CNEY has until May 27, 2025, to meet Nasdaq's minimum bid price requirement of $1.00 per share.

How can CNEY regain compliance with Nasdaq's listing requirements?

CNEY can regain compliance if its closing bid price meets or exceeds $1.00 for at least ten consecutive business days, or by implementing a reverse stock split if necessary.

What happens if CNEY stock price stays below $1.00 after May 27, 2025?

If CNEY fails to meet the minimum bid requirement by May 27, 2025, the company could face delisting from the Nasdaq Capital Market.