ECD Auto Design Announces Receipt of Nasdaq Delisting Notice

Rhea-AI Summary

ECD Automotive Design (NASDAQ: ECDA), a leader in restored and modified luxury vehicles, has received a delisting notice from Nasdaq due to failing to file its Form 10-Q for Q3 2024 on time. The company has 60 calendar days to submit a compliance plan to Nasdaq. If accepted, Nasdaq may grant up to 180 calendar days (until May 19, 2025) to regain compliance. ECD states it is working to complete and file the delayed Q3 2024 Form 10-Q within the initial 60-day period.

Positive

• Company expects to file the delayed Form 10-Q within the initial 60-day compliance period

Negative

• Failed to file Q3 2024 Form 10-Q on time
• Received Nasdaq delisting notice
• Risk of potential delisting if compliance is not achieved
• Non-compliance with Nasdaq Listing Rule 5250(c)(1)

Insights

Financial Analyst

The Nasdaq delisting notice represents a significant risk for ECD Auto Design's market accessibility and investor confidence. Failure to file the Q3 2024 10-Q on time suggests potential internal control or accounting issues that require careful scrutiny. With a relatively small market cap of $36.5 million, maintaining Nasdaq listing is important for liquidity and institutional investor access. While the company has a 60-day window to submit a compliance plan and potentially up to 180 days to fully comply, the delayed financial reporting creates uncertainty around the company's financial health and operational performance. The timing is particularly concerning as it coincides with the important year-end period when investors typically review their portfolios. This regulatory non-compliance could impact the company's ability to raise capital and maintain investor trust.

Legal Expert

This delisting notice triggers significant regulatory and compliance implications under SEC regulations and Nasdaq listing requirements. The company's failure to file its Form 10-Q raises red flags about financial reporting controls and corporate governance. While the 60-day remediation window provides some breathing room, the company must demonstrate a credible path to compliance. The potential 180-day extension is not guaranteed and depends on Nasdaq's acceptance of the compliance plan. Shareholders should monitor this situation closely as continued non-compliance could force trading to move to less regulated markets, potentially affecting share liquidity and valuation. The company's statement about expecting to file within the 60-day window is positive, but historical patterns of similar cases suggest heightened regulatory scrutiny moving forward.

KISSIMMEE, Fla., Dec. 11, 2024 (GLOBE NEWSWIRE) -- ECD Automotive Design, Inc. (Nasdaq: ECDA) (“ECA Auto Design” or the “Company”), an industry leader in delivering restored, modified and electrified Land Rover Defenders, Jaguars, Ford Mustangs, and Toyota FJs, received a notice (the “Notice”) from The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that, because the Company is delinquent in filing its Form 10-Q for the quarter ended September 30, 2024, the Company no longer complies with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”), which requires companies with securities listed on Nasdaq to timely file all required periodic reports with the SEC. The Notice provided that the Company shall have 60 calendar days to submit a plan to regain compliance with the Listing Rule, and if Nasdaq accepts the Company’s plan, Nasdaq can grant the Company an exception of up to 180 calendar days from the Filing’s due date, or until May 19, 2025, to regain compliance with the Listing Rule.

The Company is diligently working to complete its Form 10-Q for the quarter ended September 30, 2024, and the Company expects to complete and file its Form 10-Q for the quarter ended September 30, 2024 with the SEC to regain compliance with the Listing Rule prior to the expiration of the 60 day period.

About ECD Auto Design

ECD, a public company trading under the symbol ECDA on the Nasdaq Stock Market, is a creator of restored luxury vehicles that combines classic English beauty with modern performance. Currently, ECD restores Land Rovers Defenders, Land Rover Series IIA, the Range Rover Classic, the Jaguar E-Type and we have recently added the Ford Mustang and Toyota FJs. Each vehicle produced by ECD is fully bespoke, a one-off that is designed by the client through an immersive luxury design experience and hand-built from the ground up in 2,200 hours by master-certified Automotive Service Excellence (“ASE”) craftsmen. The company was founded in 2013 by three British “gear heads” whose passion for classic vehicles is the driving force behind exceptionally high standards for quality, custom luxury vehicles. ECD’s global headquarters, known as the “Rover Dome,” is a 100,000-square-foot facility located in Kissimmee, Florida that is home to 90 talented craftsmen and technicians, who hold a combined 61 ASE and five master level certifications. ECD has an affiliated logistics center in the U.K. where its seven employees work to source and transport 25-year-old work vehicles back to the U.S. for restoration. For more information, visit www.ecdautodesign.com.

Investor Contact:
Brian M. Prenoveau, CFA
MZ Group – MZ North America
ECDA@mzgroup.us
+561 489 5315

SOURCE: ECD Automotive Design, Inc.

FAQ

Why did ECDA receive a Nasdaq delisting notice in December 2024?

ECDA received a Nasdaq delisting notice for failing to file its Form 10-Q for the quarter ended September 30, 2024, violating Nasdaq Listing Rule 5250(c)(1).

How long does ECDA have to submit a compliance plan to Nasdaq?

ECDA has 60 calendar days to submit a plan to regain compliance with Nasdaq's listing requirements.

What is the maximum extension period Nasdaq could grant ECDA to regain compliance?

If Nasdaq accepts ECDA's compliance plan, they can grant up to 180 calendar days from the original filing due date, until May 19, 2025.

When does ECDA expect to file its delayed Q3 2024 Form 10-Q?

ECDA expects to complete and file its Q3 2024 Form 10-Q within the initial 60-day period given by Nasdaq.