ConnectM Receives Nasdaq Notice on Late Filing of its Form 10-K

Rhea-AI Summary

ConnectM Technology Solutions (Nasdaq: CNTM) has received multiple compliance notices from Nasdaq regarding listing requirements. On April 17, 2025, the company received a notice for failing to file its 2024 Form 10-K annual report on time. Previously, on September 4, 2024, CNTM was notified of non-compliance with the $50,000,000 market value requirement for Nasdaq Global Market listing, with a 180-day compliance period until March 3, 2025.

After failing to regain compliance by March 7, 2025, CNTM requested a hearing to appeal the potential delisting. While the company intends to file the delayed 2024 10-K 'within the very near term,' there is no guarantee of regaining compliance or maintaining Nasdaq listing.

Positive

• Hearing request temporarily stays any delisting action

Negative

• Failed to file 2024 Form 10-K annual report on time
• Market value fell below required $50,000,000 Nasdaq Global Market threshold
• Failed to regain compliance within 180-day period ending March 3, 2025
• Faces potential delisting from Nasdaq

Insights

Financial Regulatory Expert

ConnectM faces imminent Nasdaq delisting threat due to dual compliance failures: late 10-K filing and insufficient market value, creating significant shareholder risk.

ConnectM's April 17 notice from Nasdaq regarding their late 10-K filing represents a second significant compliance violation that compounds their existing listing challenges. This development is particularly concerning as it creates a dual threat to their Nasdaq listing status.

The first compliance issue emerged on September 4, 2024, when Nasdaq notified ConnectM that their market value of listed securities (MVLS) had fallen below the $50 million minimum requirement for The Nasdaq Global Market. Despite being granted the standard 180-day remediation period, ConnectM failed to resolve this issue by the March 3, 2025 deadline.

Now, with their 2024 annual report overdue, the company faces two simultaneous compliance violations. While ConnectM has requested a hearing (which temporarily stays delisting actions) and claims they will file the 10-K "within the very near term," their statement lacks specific timelines or concrete assurances.

The compliance challenges appear substantial. ConnectM's current market capitalization of approximately $18.5 million represents just 37% of Nasdaq's $50 million MVLS requirement - a 63% gap that would require extraordinary share price appreciation or significant capital raising to resolve.

Late financial filings often raise concerns about potential reporting issues or internal control weaknesses. The company's explicit acknowledgment that "there can be no assurance" they will regain compliance or receive extensions underscores the genuine risk of delisting, which typically results in reduced liquidity, institutional ownership, and share value.

Corporate Governance Specialist

ConnectM's regulatory compliance failures signal serious governance concerns, with delisting procedures already initiated and remediation options remaining.

ConnectM's current regulatory situation reflects a troubling pattern of compliance failures that raises significant governance concerns. The company has triggered Nasdaq's delisting procedures on multiple fronts within a compressed timeframe.

The chronology is particularly revealing: ConnectM first received notice about their market value non-compliance in September 2024, failed to resolve this issue within the allotted 180 days (by March 2025), and has now added a second violation by missing their annual report filing deadline.

While the hearing request provides temporary reprieve from immediate delisting, it's important to understand this procedural step does not resolve the underlying compliance issues. The hearing process typically addresses whether violations occurred (which ConnectM acknowledges) and whether any additional time should be granted.

The company's vague statement about filing "within the very near term" and requiring "only a further extension" lacks the specificity investors would expect from a well-functioning corporate governance system. This ambiguity, combined with their previous failure to meet the market value remediation deadline, suggests potential challenges in addressing these regulatory matters effectively.

ConnectM's explicit acknowledgment that there's "no assurance" of regaining compliance or receiving extensions reinforces the seriousness of their listing status. For shareholders, this situation demands close attention, as delisting typically represents a material adverse event with significant implications for share liquidity and value.

MARLBOROUGH, Mass., April 23, 2025 /PRNewswire/ -- ConnectM Technology Solutions, Inc. (Nasdaq: CNTM) ("ConnectM" or the "Company"), a high-growth technology company on the leading edge of the energy economy, today announced it received a notice (the "Letter") from Nasdaq on April 17, 2025, notifying the Company that it is not in compliance with the Securities and Exchange Commission (the "SEC") periodic reporting requirements for continued listing, as set forth in Nasdaq Listing Rule 5250(c)(1), because the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "2024 10-K"), was not filed with the SEC by the required due date.

As previously disclosed in a Current Report on Form 8-K filed with the SEC on September 10, 2024, on September 4, 2024, the Company received a notice from Nasdaq stating that the Company's listed securities failed to comply with the $50,000,000 market value of listed securities ("MVLS") requirement for continued listing on The Nasdaq Global Market in accordance with Nasdaq Listing Rule 5450(b)(2)(A) (the "Rule") based upon the Company's MVLS for the 30 consecutive business days prior to the date of the Notice. The Company was provided a period of 180 calendar days, or until March 3, 2025, in which to regain compliance.

As previously disclosed in a Current Report on Form 8-K filed with the SEC on March 12, 2025, on March 7, 2025, the Company received another notice from Nasdaq stating that the Company had not regained compliance with the Rule. Accordingly, its securities were subject to delisting unless the Company timely requested a hearing. The Company timely requested a hearing. The hearing request stayed any suspension or delisting action pending the completion of the hearings process.

With respect to the Letter, the Company has advised Nasdaq that it intends to file the 202410-K within the very near term and thus requires only a limited further extension of time for the filing of the 2024 10-K. However, there can be no assurance that the Company will ultimately regain compliance with all applicable requirements for continued listing or that Nasdaq will grant the Company a further extension to regain compliance with all applicable requirements for continued listing.

About ConnectM Technology Solutions, Inc.

ConnectM is a constellation of companies powering next generation equipment, mobility and distributed energy—thus enabling a faster, smarter transition to a modern energy economy. The Company delivers an advanced, proprietary Energy Intelligence Network platform designed to empower residential and commercial service providers and original equipment manufacturers, to optimize energy efficiency, enhance operational performance, and support sustainable innovation. Leveraging technology, data, artificial intelligence, and behavioral economics, ConnectM aims to lower energy costs and reduce carbon emissions globally.

For more information, please visit: https://www.connectm.com/

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We have based these forward-looking statements on our current expectations and projections about future events. All statements, other than statements of present or historical fact included in this press release, regarding our future financial performance and our strategy, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "would," "expect," "plan," "anticipate," "intend," "believe," "estimate," "continue," "project" or the negative of such terms or other similar expressions. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. We caution you that the forward-looking statements contained herein are subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. In addition, we caution you that the forward-looking statements regarding the Company contained in this press release are subject to the risks and uncertainties described in the "Cautionary Note Regarding Forward-Looking Statements" section of the Current Report on Form 8-K filed with the Securities and Exchange Commission on July 18, 2024. Such filing identifies and addresses other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and ConnectM is under no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact:
Investor Relations
Dave Gentry, CEO
RedChip Companies, Inc.
1-407-644-4256
CNTM@redchip.com

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SOURCE ConnectM Technology Solutions, Inc.

FAQ

Why is ConnectM (CNTM) at risk of being delisted from Nasdaq?

CNTM faces delisting due to two issues: failing to file its 2024 Form 10-K on time and not meeting the $50,000,000 market value requirement for Nasdaq Global Market listing.

What is the deadline for ConnectM (CNTM) to file its delayed 2024 Form 10-K?

While CNTM states it intends to file the 2024 10-K 'within the very near term,' no specific deadline has been provided in the announcement.

What happens next in ConnectM's (CNTM) Nasdaq delisting process?

CNTM has requested a hearing to appeal the delisting. The hearing request has stayed any suspension or delisting action pending the completion of the hearings process.

When did ConnectM (CNTM) receive its first Nasdaq non-compliance notice?

CNTM received its first non-compliance notice on September 4, 2024, regarding failure to maintain the required $50,000,000 market value of listed securities.