Foresight Receives Nasdaq Notification Regarding Minimum Bid Requirements

Rhea-AI Summary

Foresight Autonomous Holdings (FRSX) has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. The company's closing bid price for its American Depositary Shares (ADSs) has been below $1.00 for 30 consecutive business days. Foresight has been granted a 180-day compliance period until March 3, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days.

If unsuccessful, the company may be eligible for an additional 180-day period, provided it meets other listing requirements. Failure to comply could result in delisting from Nasdaq. Foresight intends to monitor the situation and consider options to regain compliance. The company's ADSs will continue to trade on the Nasdaq Capital Market during this period.

Positive

• None.

Negative

• Foresight's ADS price has fallen below $1.00 for 30 consecutive business days
• The company is at risk of being delisted from Nasdaq if it fails to regain compliance
• Potential need for measures to increase share price, which could impact shareholders

Insights

Financial Analyst

Foresight's Nasdaq notification is a significant concern for investors. The company's failure to maintain a $1.00 minimum bid price for its ADSs puts it at risk of delisting, which could severely impact liquidity and investor confidence. While Foresight has until March 3, 2025 to regain compliance, this situation often indicates underlying financial struggles or market skepticism. The company may need to consider options like a reverse stock split, which could dilute shareholder value. Investors should closely monitor Foresight's financial performance and any strategic moves to address this issue. The automotive vision systems market is competitive and this notification may hinder Foresight's ability to raise capital or attract partnerships, potentially impacting its long-term viability.

Market Research Analyst

This notification reflects broader market challenges for small-cap tech companies, especially those in emerging sectors like autonomous vehicles. Foresight's stock performance suggests investor skepticism about its near-term prospects or the overall market readiness for its technology. The 180-day compliance period is standard, but the potential for delisting could create a self-fulfilling prophecy, further depressing the stock price. Investors should consider:

• Foresight's cash position and burn rate
• Progress in technology development and commercialization
• Competitive landscape in automotive vision systems

The company's ability to demonstrate tangible progress in these areas will be important for regaining investor confidence and meeting the Nasdaq requirements.

Legal Expert

From a legal and compliance perspective, Foresight's prompt disclosure of the Nasdaq notification is important for maintaining transparency with investors. The company now faces several key legal considerations:

• Ensuring all public communications accurately reflect its Nasdaq status
• Carefully weighing any strategic decisions to regain compliance, ensuring they don't violate securities laws
• Preparing for potential shareholder actions if delisting occurs

If Foresight fails to regain compliance, it may need to explore alternative trading platforms, which could have significant legal and regulatory implications. Investors should be aware that while the company has options, the path forward carries legal risks that could impact shareholder value.

Ness Ziona, Israel, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Foresight Autonomous Holdings Ltd. (Nasdaq and TASE: FRSX) (“Foresight” or the “Company”), an innovator in automotive vision systems, announced today that on September 3, 2024, the Company received a written notice (the “Notice”) from the Nasdaq Stock Market LLC indicating that the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2), as the Company’s closing bid price for its American Depositary Shares (“ADSs”) was below $1.00 per share for the last 30 consecutive business days.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been granted a 180-calendar day compliance period, or until March 3, 2025, to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company’s ADSs must meet or exceed $1.00 per share for at least 10 consecutive business days during the 180-calendar day compliance period.

If the Company is not in compliance by March 3, 2025, the Company may be afforded a second 180-calendar day compliance period. To qualify for this additional time, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq with the exception of the minimum bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period. If the Company does not regain compliance within the allotted compliance period(s), including any extensions that may be granted by Nasdaq, Nasdaq will provide notice that the Company’s ADSs will be subject to delisting.

The Company intends to monitor the closing bid price of its ADSs between now and March 3, 2025, and intends to consider available options to cure the deficiency and regain compliance with the minimum bid price requirement within the compliance period. The Company’s ADSs will continue to be listed and trade on the Nasdaq Capital Market during this period, unaffected by the receipt of the written notice from Nasdaq.

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

About Foresight

Foresight Autonomous Holdings Ltd. (Nasdaq and TASE: FRSX) is a technology company developing smart multi-spectral vision software solutions and cellular-based applications. Through the Company’s wholly owned subsidiaries, Foresight Automotive Ltd., Foresight Changzhou Automotive Ltd. and Eye-Net Mobile Ltd., Foresight develops both “in-line-of-sight” vision systems and “beyond-line-of-sight” accident-prevention solutions.

Foresight’s vision solutions include modules of automatic calibration and dense three-dimensional (3D) point cloud that can be applied to different markets such as automotive, defense, autonomous vehicles and heavy industrial equipment. Eye-Net Mobile’s cellular-based solution suite provides real-time pre-collision alerts to enhance road safety and situational awareness for all road users in the urban mobility environment by incorporating cutting-edge AI technology and advanced analytics.

For more information about Foresight and its wholly owned subsidiary, Foresight Automotive, visit www.foresightauto.com, follow @ForesightAuto1 on Twitter, or join Foresight Automotive on LinkedIn.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities and Israeli securities laws. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, we are using forward-looking statements when we are discussing regaining compliance with Nasdaq’s continued listing requirements, and the timing and effect thereof. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” are intended to identify forward-looking statements. Because such statements deal with future events and are based on Foresight’s current expectations, they are subject to various risks and uncertainties, and actual results, performance or achievements of Foresight could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023 filed with the SEC on March 27, 2024, which is available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Investor Relations Contact:

Miri Segal-Scharia
CEO
MS-IR LLC
msegal@ms-ir.com
917-607-8654

FAQ

What is the current Nasdaq compliance issue for Foresight (FRSX)?

Foresight (FRSX) has received a notification from Nasdaq for non-compliance with the minimum bid price requirement, as its ADS closing price has been below $1.00 for 30 consecutive business days.

How long does Foresight (FRSX) have to regain compliance with Nasdaq's minimum bid requirements?

Foresight (FRSX) has been granted a 180-day compliance period, until March 3, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days.

What happens if Foresight (FRSX) fails to meet Nasdaq's minimum bid requirements by March 3, 2025?

If Foresight (FRSX) fails to meet the requirements by March 3, 2025, it may be eligible for an additional 180-day compliance period. If it still doesn't comply after that, the company's ADSs could be subject to delisting from Nasdaq.

Will Foresight's (FRSX) stock continue to trade on Nasdaq during the compliance period?

Yes, Foresight's (FRSX) American Depositary Shares (ADSs) will continue to be listed and trade on the Nasdaq Capital Market during the compliance period, unaffected by the receipt of the notification.