Tritium Receives Nasdaq Staff Determination Letter
- None.
- Tritium DCFC does not currently meet the minimum 1,100,000 publicly held shares required for continued listing on Nasdaq, posing a challenge for the company's stock trading status.
Insights
When a company like Tritium DCFC Limited fails to meet Nasdaq's Public Float Standard, it's a signal to the market that could lead to increased volatility in the company's stock. The public float refers to the number of shares actually available for trading by the general public. A low public float can sometimes result in reduced liquidity and higher price volatility, which might deter some investors.
For Tritium, this situation presents the challenge of convincing the Nasdaq Hearings Panel of their plan to increase the public float. If successful, they could stabilize their stock's presence on the exchange. However, failure to regain compliance could result in delisting, which often leads to a decrease in share price and liquidity, as the stock would then trade on a less prestigious platform.
Investors should be aware that a notice of non-compliance from Nasdaq is a serious matter. It indicates that Tritium must act promptly to address the issue. The company's intentions to present a plan to regain compliance is a positive step, but it's the effectiveness and feasibility of this plan that will be under scrutiny.
The potential impact on Tritium's financial health should be considered. Delisting can limit a company's access to capital markets, making it more challenging to raise funds through new stock offerings. This could hamper Tritium's ability to invest in research and development or expand its operations, which is particularly critical for a company in the rapidly evolving EV charging sector.
From a legal standpoint, Tritium's adherence to Nasdaq Listing Rules is not just a matter of regulatory compliance, but also a reflection of the company's governance quality. The scheduled hearing with the Nasdaq Hearings Panel is a due process opportunity for Tritium to address the shortfall and propose a remedial course of action.
However, investors should consider the legal implications of potential delisting. It could open the door to shareholder lawsuits, especially if the share price were to suffer as a result of the delisting. The company will need to manage this process transparently and effectively to maintain shareholder trust and minimize legal risks.
BRISBANE, Australia, April 11, 2024 (GLOBE NEWSWIRE) -- Tritium DCFC Limited (Nasdaq: DCFC) (“Tritium” or the “Company”), a global developer and manufacturer of direct current (“DC”) fast chargers for electric vehicles (“EVs”), today announced that on April 5, 2024 the Company received a notice from the Nasdaq Stock Market LLC (“Nasdaq”) that the Company does not currently meet the minimum 1,100,000 publicly held shares required for continued listing on Nasdaq pursuant to Nasdaq Listing Rule 5450(b)(1)(B) (the “Public Float Standard”).
The Company plans to discuss the Public Float Standard with Nasdaq during its scheduled hearing with the Nasdaq Hearings Panel and present the Company’s views pursuant to Listing Rule 5810(d). The Company intends to demonstrate a plan to regain compliance with the Public Float Standard and intends to take all necessary steps for its shares to remain trading on Nasdaq until such time as the Nasdaq Hearings Panel makes a final determination.
About Tritium
Founded in 2001, Tritium (Nasdaq: DCFC) designs and manufactures proprietary hardware and software to create advanced and reliable DC fast chargers for electric vehicles. Tritium’s compact and robust chargers are designed to look great on Main Street and thrive in harsh conditions, through technology engineered to be easy to install, own, and use. Tritium is focused on continuous innovation in support of our customers around the world.
For more information, visit tritiumcharging.com.
Forward Looking Statements
This press release includes “forward-looking statements.” The Company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” “aim” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations, hopes, beliefs, intentions, or strategies for the future, including those that relate to the Company’s reverse stock split and share price. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. The Company cautions not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
Media Contact
Nathan Dunlop
media@tritiumcharging.com
FAQ
Why did Tritium DCFC receive a notice from Nasdaq?
What is the plan of Tritium DCFC to address the Public Float Standard issue?
What steps will Tritium DCFC take to remain trading on Nasdaq?
What is the Nasdaq Listing Rule that Tritium DCFC did not meet?
