Charge Enterprises Announces Decision of Nasdaq Hearings Panel To Delist Common Shares

Rhea-AI Summary

Charge Enterprises, Inc. (CRGE) faces delisting from Nasdaq due to non-compliance with bid price requirements. The company received a delisting notice and will be suspended from trading on February 29, 2024. CRGE's common stock may soon be quoted on the OTC Pink Market.

Positive

• None.

Negative

• CRGE's delisting from Nasdaq due to non-compliance with bid price requirements is a negative development for the company and its shareholders.

Insights

Market Research Analyst

The delisting of Charge Enterprises, Inc. from Nasdaq is a significant event that typically indicates a company is facing substantial challenges. The breach of Nasdaq's minimum bid price requirement suggests a persistently low valuation of the company's stock, which could be due to a variety of factors such as poor financial performance, loss of investor confidence, or broader market trends negatively impacting the sector. The transition to the OTC Pink Market often leads to reduced liquidity and visibility among investors, which can further depress the stock price and make it more difficult for the company to raise capital.

It is essential to note that companies trading on the OTC markets are subject to less stringent reporting requirements, potentially leading to a lack of transparency and higher risk for investors. The decline in share price to below $0.10 is particularly concerning as it reflects extreme bearish sentiment and may indicate underlying operational or financial issues that need to be addressed. Investors should closely monitor the company's future financial disclosures and strategic initiatives to assess the potential for recovery or further decline.

Financial Analyst

The denial of the Extension Request by Nasdaq and the subsequent delisting of Charge Enterprises, Inc. can have immediate and long-term financial implications. In the short term, the news may trigger a sell-off among current investors, further decreasing the stock price. The company's capital structure could be adversely affected, as delisting often results in a higher cost of capital due to the perceived increased risk. This could hamper the company's ability to fund operations or growth initiatives.

In the long term, the company's strategic options may be limited, as being traded on a less prestigious exchange could deter institutional investors and lead to challenges in executing equity-based compensation plans, which are crucial for attracting and retaining talent. Additionally, the company may face difficulties in engaging in mergers and acquisitions, as its stock may no longer be seen as an attractive currency. Shareholders should be prepared for potential volatility and consider the company's plans for returning to profitability and compliance with exchange requirements.

Legal Expert

The process of delisting from a major exchange like Nasdaq is governed by a set of regulations that aim to protect investors and maintain fair market practices. Charge Enterprises' acknowledgment of the delisting indicates compliance with the regulatory framework, but it also raises questions about the company's governance and future regulatory challenges. As the company moves to the OTC Pink Market, it will operate under a different set of rules that may not provide the same level of investor protection as Nasdaq.

Investors should be aware of the reduced regulatory oversight and the potential for increased exposure to fraudulent activities in less regulated markets. Companies that are delisted also face reputational risks that can affect stakeholder relationships and future business prospects. The legal implications of delisting, including potential shareholder lawsuits or increased scrutiny from regulatory bodies, should not be overlooked, as they can have a significant impact on the company's operations and financial health.

NEW YORK--(BUSINESS WIRE)-- Charge Enterprises, Inc. (Nasdaq: CRGE) ("Charge" or the "Company”), today announced that on February 20, 2024, the Company received written notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that trading of its common stock will be suspended as of the opening of business on February 29, 2024 (the “Delisting Letter”).

The Company had previously been notified by Nasdaq on August 22, 2023, that it was no longer in compliance with Nasdaq Listing Rule 5450(a)(1) because the closing bid price per share for the Company’s Common Stock had closed below $1.00 for the previous 30 consecutive business days. The Company had applied for an additional 180-day compliance period to regain compliance with Nasdaq Listing Rule 5550(a)(2) (the “Extension Request”).

On February 20, 2024, the Company received written notice from Nasdaq that the staff of Nasdaq had denied the Extension Request. Nasdaq determined that the Company was not eligible for the Extension Request and reached its decision to commence delisting proceedings of the Common Stock because the closing bid price of the Company’s common stock has closed below $0.10 and may soon trigger delisting under Nasdaq Listing Rule 5810(c)(3)(A)(iii). The Company does not intend to appeal the staff’s determination and, accordingly, the Company expects that the Common Stock will be delisted at the opening of business on February 29, 2024.

The Company anticipates that after delisting, the Company’s common stock will be quoted on the OTC Pink Market under the symbol “CRGE”.

Notice Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect current expectations or beliefs regarding future events or Charge's future performance. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", “potential”, "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. All forward-looking statements, including those herein, are qualified by this cautionary statement. Although Charge believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include statements regarding litigation efforts, future operations, the Company’s ability to maintain internal capital sufficient to pursue the above litigation at all times necessary going forward and other risks discussed in Charge's filings with the U.S. Securities and Exchange Commission ("SEC"). Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this report speak only as of the date of this press release or as of the date or dates specified in such statements. For more information on us, investors are encouraged to review our public filings with the SEC, including the factors described in the section captioned “Risk Factors” of Charge’s Annual Report on Form 10-K filed with the SEC on March 15, 2023, and subsequent reports we file from time to time with the SEC, including Charge’s Quarterly Report on Form 10-Q filed with the SEC on November 8, 2023, which are available on the SEC's website at www.sec.gov. Charge disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.

About Charge Enterprises, Inc.

Charge Enterprises, Inc. is an electrical, broadband and EV charging infrastructure company that provides clients with end-to-end project management services. Our vision is to be a leader in enabling the next wave of transportation and connectivity. By building, designing, and operating seamless infrastructure for electric vehicles, we aim to create a future where transportation is clean, efficient, and connected and to empower individuals, communities, and businesses to thrive in a more sustainable world. Our plan is to cultivate repeat customers and recurring revenues by deploying a multi-phased strategy, initially where investment in the EV charging revolution is taking place, the nation’s approximately 18,000 franchised auto dealers.

To learn more about Charge, visit Charge Enterprises, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240222791881/en/

Alex Thompson

Gateway Group

949-574-3860

CRGE@gateway-grp.com

Source: Charge Enterprises, Inc.

FAQ

Why is Charge Enterprises, Inc. (CRGE) facing delisting from Nasdaq?

CRGE is facing delisting because its common stock bid price closed below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5450(a)(1).

When will CRGE be suspended from trading on Nasdaq?

CRGE will be suspended from trading on Nasdaq as of the opening of business on February 29, 2024.

What will happen to CRGE's common stock after delisting?

After delisting, CRGE's common stock is expected to be quoted on the OTC Pink Market under the symbol 'CRGE'.

Is CRGE planning to appeal Nasdaq's decision for delisting?

CRGE does not intend to appeal Nasdaq's decision for delisting and expects the Common Stock to be delisted on February 29, 2024.