Elong Power Receives Staff Determination Notices from Nasdaq

Rhea-AI Summary

Elong Power (Nasdaq: ELPW), a provider of high power battery technologies, has received two critical notices from Nasdaq's Listing Qualifications Department regarding potential delisting concerns. The first notice indicates that the company's closing market value of listed securities (MVLS) has fallen below the required $50 million minimum for 30 consecutive business days through March 18, 2025. The second notice states that the closing bid price of the company's Ordinary Shares has remained below the $1.00 minimum requirement.

The company has been granted a 180-day compliance period until September 15-16, 2025, to address these issues. To maintain listing, ELPW must achieve: 1) a closing MVLS of at least $50 million for a minimum of ten consecutive business days, and 2) a closing bid price of at least $1.00 for ten consecutive business days. Currently, ELPW's shares continue to trade normally under the symbol 'ELPW' on the Nasdaq Global Market.

Positive

• Company granted 180-day grace period to address compliance issues
• Shares continue trading normally on Nasdaq during compliance period

Negative

• Market value of listed securities fallen below $50 million minimum requirement
• Stock price trading below $1.00 minimum requirement
• Risk of potential delisting from Nasdaq if compliance not achieved

Insights

Financial Analyst

These dual Nasdaq notices constitute a material risk factor for Elong Power. With a current market capitalization of $33.6 million against the required $50 million minimum, and a share price of $0.70 below the $1.00 threshold, the company faces twin compliance challenges indicating deeper financial concerns.

The 180-day remediation period provides runway to address these issues. Elong Power must increase its market value by over 49% and share price by at least 43%, sustained for 10+ consecutive business days before the September deadline. This represents a significant hurdle given no catalysts are mentioned in the announcement.

Companies in similar situations typically consider reverse stock splits to artificially boost share prices, but this wouldn't address the more challenging market capitalization requirement without fundamental business improvement. Historically, dual-violation notices correlate with higher eventual delisting rates.

If delisting occurs, Elong would face substantially impaired ability to access growth capital, reduced trading liquidity, institutional investor exodus, and potential covenant breaches in any debt agreements requiring listed status. The absence of management commentary on remediation strategies suggests a lack of immediately executable plans to address these deficiencies.

While trading continues uninterrupted for now, these notices effectively place Elong Power on probation with Nasdaq and signal elevated investment risk.

Ganzhou, China, March 25, 2025 (GLOBE NEWSWIRE) -- Elong Power Holding Limited (“Elong Power” or the “Company”) (Nasdaq: ELPW), a provider of high power battery technologies for commercial and specialty alternative energy vehicles and energy storage systems, today announced that the Company received (i) a notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) stating that, for the prior 30 consecutive business days (through March 18, 2025), the closing market value of listed securities (MVLS) of the Company’s Class A ordinary shares, $0.00001 par value per share (“Ordinary Shares”), had been below the minimum of $50 million required for continued listing on the Nasdaq Global Market under Nasdaq Listing Rule 5450(b)(2)(A) and (ii) a notice from the Listing Qualifications Department of Nasdaq stating that, based on the closing bid price of the Ordinary Shares for the last 30 consecutive business days, the Company no longer met the $1.00 minimum bid price required for continued listing on the Nasdaq Global Market under Nasdaq Listing Rule 5450(a)(1). The noticed stated that the Company would be afforded 180 calendar days (until September 15, 2025 and September 16, 2025, respectively) to regain compliance. In order to regain compliance, (i) the closing MVLS of the Company’s securities must be at least $50 million for a minimum of ten consecutive business days and (ii) the closing bid price of the Ordinary Shares must be at least $1.00 for a minimum of ten consecutive business days, although the Staff may in its discretion require a longer period of no more than 20 business days. If the Company does not regain compliance within either of the 180-day periods, the securities will be subject to delisting.

The notices have no effect at this time on the listing of the Company’s Ordinary Shares, which will continue to trade uninterrupted under the symbol “ELPW”.

About Elong Power

Elong Power Holding Limited, a Cayman Islands exempted company, is committed to the research and development, manufacturing, sales and service of high-power lithium-ion batteries for electric vehicles and construction machinery, as well as large-capacity, long-cycle lithium-ion batteries for energy storage systems. Elong Power is led by Ms. Xiaodan Liu, Elong Power’s Chairwoman and CEO.

Elong Power has a comprehensive product and technology system that includes battery cells, modules, system integration, and battery management system development, based on high-power lithium-ion batteries and battery system products for long-cycle energy storage devices. Elong Power offers advanced energy applications and full life cycle services. Its product portfolio includes products utilizing lithium manganese oxide and lithium iron phosphate, among others, to meet the needs of high-power applications and energy storage applications in various scenarios.

Forward-looking Statements

This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the benefits of the transaction, the anticipated timing of the transaction, the products offered by Elong Power and the markets in which it operates, and Elong Power’s projected future results. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including, but not limited to: the ability of Elong Power to maintain the listing of its securities on Nasdaq; the fact that the price of Elong Power’s securities may be volatile due to a variety of factors, including changes in the competitive and highly regulated industries in which Elong Power operates; variations in performance across competitors; changes in laws and regulations affecting Elong Power’s business and changes in its capital structure; the ability to implement business plans, meet forecasts and other expectations; its need for substantial additional funds; the parties’ dependence on third-party suppliers; risks relating to the results of research and development activities, market and other conditions; its ability to attract, integrate, and retain key personnel; risks related to its growth strategy; risks related to patent and intellectual property matters; and the ability to obtain, perform under and maintain financing and strategic agreements and relationships. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Risks regarding Elong Power’s business are described in detail in Elong Power’s SEC filings which are available on the SEC’s website at www.sec.gov, including in Elong Power’s Shell Company Report on Form 20-F and Elong Power’s subsequent filings with the SEC. These forward-looking statements speak only as of the date hereof, and Elong Power expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.

Elong Power Investor Contact

ir@elongpower.com

FAQ

What are the two Nasdaq compliance issues facing Elong Power (ELPW)?

ELPW faces two issues: market value of listed securities below $50 million and share price below $1.00, both for 30 consecutive business days.

When does Elong Power (ELPW) need to meet Nasdaq compliance requirements by?

ELPW has until September 15-16, 2025 (180 days) to meet both the market value and share price requirements.

What must ELPW's stock price reach to maintain Nasdaq listing?

ELPW must maintain a closing bid price of at least $1.00 for a minimum of ten consecutive business days.

What happens if Elong Power (ELPW) fails to meet Nasdaq requirements by September 2025?

If ELPW fails to meet either requirement within the 180-day period, its securities will be subject to delisting from Nasdaq.