Smart Powerr Corp. Receives Notice of Filing Delinquency From Nasdaq

Rhea-AI Summary

Smart Powerr Corp. (CREG) announced it received a notification from Nasdaq regarding its failure to timely file required quarterly and annual reports. This non-compliance with Nasdaq Listing Rule 5250(c)(1) means CREG must submit a plan to regain compliance by June 20, 2022. If accepted, the company has until October 17, 2022, to correct the issue. The delay in filings stems from challenges related to COVID-19 in China. The notification does not immediately impact CREG's listing status on Nasdaq.

Positive

• The notification does not immediately affect CREG's listing on Nasdaq.

Negative

• CREG failed to file its Form 10-Q for Q1 2022 and Form 10-K for 2021 on time, indicating potential operational challenges.
• The company must submit a Compliance Plan by June 20, 2022, which may indicate ongoing financial difficulties.

XI’AN, China, May 24, 2022 (GLOBE NEWSWIRE) --  Smart Powerr Corp. (NASDAQ: CREG) (“CREG” or the “Company”), an industrial waste-to-energy solution provider in China, announced today that it received written notification from Listing Qualifications Department of The Nasdaq Stock Market LLC (the “Nasdaq”) that, as a result of not having timely filed its quarterly report on Form 10-Q for the year ended March 31, 2022 (the “Form 10-Q”), and because the Company remains delinquent in filing its Form 10-K for the fiscal year ended December 31, 2021 (the “Initial Delinquency Filing”), the Company does not comply with the Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic financial reports with the U.S. Securities and Exchange Commission (the “SEC”).

Under the Nasdaq Listing Rule 5810(c)(2)(F)(i), the Company is required to submit its plan to regain compliance (the “Compliance Plan”) no later than June 20, 2022. If the plan is accepted by Nasdaq, CREG can be granted up to 180 calendar days from the Initial Delinquency Filing’s due date or until October 17, 2022, to regain compliance.

The notification has no immediate impact on the listing of the Company’s shares of common stock on the Nasdaq Capital Market. As previously disclosed by CREG in its Form 8-K filed with the SEC on April 15, 2022, the Company was unable to file its Form 10-K by its original deadline due to undue burden and hardship caused by the impact of COVID-19 in the PRC. The Company intends to submit the Compliance Plan as soon as practicable but no later than June 20, 2022.

This announcement is made in compliance with the Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a notification of deficiency.

About Smart Powerr Corp.

Smart Powerr Corp. (Nasdaq: CREG) (“CREG” or “the Company”) is based in Xi’an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. The byproducts include heat, steam, pressure, and exhaust, which we use to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1% of total energy consumption. The recycled energy resource market is viewed as a fast-growing market due to intensified environmental concerns and rising energy costs as Chinese economy continues to expand. The Company’s management and engineering teams have over 20 years of experience in industrial energy recovery in China. For more information about CREG, please visit http://smartpowerr.com.

Safe Harbor Statement

This press release may contain certain “forward-looking statements” relating to the business of CREG and its subsidiary companies. All statements, other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including, but not limited to, the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions relating to the registered direct offering and those discussed in the Company's annual and periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For more information, please contact:
Mr. Jackie Shi,
VP & Chief Financial Officer
Smart Powerr Corp.
Tel: +86- 139 9287 0723
Email: shi910723@yeah.net / jackie.shi@creg-cn.com

FAQ

What compliance issue did Smart Powerr Corp. (CREG) face with Nasdaq?

Smart Powerr Corp. received a notification from Nasdaq for failing to timely file its quarterly report (Form 10-Q) and annual report (Form 10-K).

What is the deadline for CREG to submit its Compliance Plan to Nasdaq?

CREG must submit its Compliance Plan by June 20, 2022, to regain compliance.

What are the consequences if CREG does not regain compliance with Nasdaq?

If CREG's Compliance Plan is not accepted, it may face delisting from Nasdaq.

Why did CREG fail to file its financial reports on time?

The delay was attributed to undue burden and hardship caused by COVID-19 in China.

How long does CREG have to regain compliance after submitting the plan?

If accepted, CREG has until October 17, 2022, to regain compliance.