Graphjet Technology Receives Notification of Delinquency from Nasdaq

Rhea-AI Summary

Graphjet Technology, a company listed on Nasdaq under the symbol GTI, announced that it received a delinquency notification from Nasdaq on May 30, 2024. The notification highlights that Graphjet failed to file its Quarterly Report (Form 10-Q) for the quarter ending March 31, 2024, which is a breach of Nasdaq Listing Rule 5250(c)(1). The company is actively working with its accounting firm to rectify the issue. Although the notification does not immediately affect the listing of Graphjet's shares, the company has until July 29, 2024, to submit a compliance plan. If accepted, Nasdaq may grant an extension until November 18, 2024, to meet the compliance requirements. Failure to submit an acceptable plan may lead to a hearing.

Positive

• The company is actively collaborating with its independent accounting firm to complete the required Form 10-Q.
• The delinquency notice does not immediately affect the listing of Graphjet's ordinary shares on Nasdaq.
• The company has a grace period until July 29, 2024, to submit a compliance plan, offering a chance to avoid immediate penalties.
• Nasdaq may allow an extension of up to 180 days from the initial due date to regain compliance.

Negative

• Graphjet failed to file its Quarterly Report for the quarter ending March 31, 2024, which is a violation of Nasdaq Listing Rule 5250(c)(1).
• The company faces a risk of delisting if it fails to submit an acceptable compliance plan by the deadline of July 29, 2024.
• If Nasdaq does not accept the compliance plan, Graphjet will have to appeal the decision, adding further uncertainty.
• The delinquency notice indicates potential issues in the company's internal controls or financial reporting processes.

Kuala Lumpur, June 04, 2024 (GLOBE NEWSWIRE) -- Graphjet Technology, a Cayman Islands exempt company (“Graphjet” or the “Company”) (Nasdaq: GTI), today announced that on May 30, 2024, the Company received a delinquency notification letter (the “10-Q Notice”) from the Listing Qualifications Department of the Nasdaq Stock Market (“Nasdaq”) indicating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) as a result of the Company’s failure to have timely filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (the “Quarterly Report”), with the Securities and Exchange Commission. The Company is working diligently with its independent registered public accounting firm to complete the Form 10-Q. The 10-Q Notice has no immediate effect on the listing of the Company’s ordinary shares on the Nasdaq Global Market.

The 10-Q Notice provides that the Company has 60 calendar days, until July, 29, 2024, to submit a plan to regain compliance with respect to the delinquent report. If the Company’s plan is accepted, Nasdaq may grant the Company an exception of up to 180 days from the due date of the initial delinquent filing, or until November 18, 2024, to regain compliance. If Nasdaq does not accept the plan, the Company will have the opportunity to appeal the decision to a Hearings Panel.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Such forward-looking statements include, without limitation, statements regarding the Company’s anticipated filing of its Annual Report and Quarterly Report. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) the Company’s ability to successfully increase its revenue and profit in the future, (ii) trends in the graphite and graphene raw materials industry, including changes in demand and supply related to the Company’s products and services, (iii) the Company’s growth prospects and market size, (iv) the fact that many of the Company’s competitors are better established and have significantly greater resources than the Company, (v) new product and service offerings the Company may introduce in the future, (vi) the potential loss or departure of key personnel, (vii) changes in government regulations, (viii) the liquidity and trading volume of the Company’s ordinary shares, (ix) an outbreak of disease, epidemic or pandemic, such as the global coronavirus pandemic, or fear of such an event, (x) risks associated with litigation and claims, which could impact our financial results and condition, and (x) the Company’s ability to regain and maintain compliance with the continued listing requirements of the Nasdaq Global Market.

More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual and Quarterly Reports on Form 10-K and Form 10-Q, respectively. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.

Contact:

Graphjet Technology
Unit No. L4-E-8, Enterprise 4
Technology Park Malaysia
Bukit Jalil
Kuala Lumpur, Malaysia
Attn: Aiden Lee Ping Wei
Chief Executive Officer
Tel: + (60) 018 272 7799

FAQ

Why did Graphjet Technology receive a delinquency notification from Nasdaq?

Graphjet Technology received a delinquency notification for failing to file its Quarterly Report (Form 10-Q) for the quarter ending March 31, 2024, by the required deadline.

What is Nasdaq Listing Rule 5250(c)(1)?

Nasdaq Listing Rule 5250(c)(1) requires companies to file timely periodic financial reports, such as Quarterly Reports on Form 10-Q, with the Securities and Exchange Commission.

Does the delinquency notice immediately affect the listing of Graphjet's shares?

No, the delinquency notice has no immediate effect on the listing of Graphjet's shares on the Nasdaq Global Market.

What is the deadline for Graphjet to submit a compliance plan to Nasdaq?

Graphjet has until July 29, 2024, to submit a compliance plan to regain compliance with Nasdaq's listing requirements.

What happens if Nasdaq accepts Graphjet's compliance plan?

If Nasdaq accepts Graphjet's compliance plan, the company may be granted an extension of up to 180 days from the initial due date to file the delinquent report and regain compliance.

What are the consequences if Nasdaq does not accept Graphjet's compliance plan?

If Nasdaq does not accept the compliance plan, Graphjet will have the opportunity to appeal the decision to a Hearings Panel.