Innoviz Regains Compliance with Nasdaq's Minimum Bid Price Requirement

Rhea-AI Summary

Innoviz Technologies (Nasdaq: INVZ), a Tier-1 supplier of automotive-grade LiDAR sensors and perception software, has successfully regained compliance with Nasdaq's minimum bid price requirement. The company received formal confirmation from Nasdaq after maintaining a closing bid price of at least $1.00 per share for 10 consecutive business days from December 16 to December 30, 2024, meeting the January 27, 2025 deadline set in the initial notice dated July 30, 2024.

This development resolves the compliance issue raised by Nasdaq Listing Rule 5550(a)(2), and the matter has been officially closed by Nasdaq Listing Qualifications Staff.

Positive

• Regained Nasdaq listing compliance, eliminating risk of delisting
• Maintained share price above $1.00 for required period
• Successfully resolved compliance issue ahead of January 27, 2025 deadline

Negative

• Previous trading below $1.00 minimum bid requirement indicates recent stock price weakness

Insights

Financial Compliance Analyst

Innoviz's regaining of Nasdaq compliance removes a significant regulatory overhang that threatened potential delisting. The company's ability to maintain a >$1.00 share price for the required period demonstrates market confidence, though it's worth noting this was achieved near the final deadline of January 27, 2025. While compliance restoration is positive for maintaining institutional investor access and market visibility, the relatively low share price still indicates underlying market concerns about the LiDAR sector's competitive dynamics and path to profitability. This development eliminates immediate delisting risk but doesn't fundamentally alter the company's operational challenges in the automotive LiDAR space.

For retail investors, this means: The stock won't be kicked off Nasdaq, which would have made it harder to buy and sell shares. However, just meeting the minimum price requirement is a low bar - like passing a basic health check without showing peak fitness. The company still needs to prove it can grow and make money in the competitive self-driving car sensor market.

Market Structure Specialist

The compliance restoration has technical implications beyond the surface-level relief. With a market cap of only $283.4 million, maintaining Nasdaq listing is important for Innoviz's capital market access. A delisting would have triggered forced selling from index funds and ETFs, potentially creating a negative feedback loop. The timing of compliance, achieved through natural price appreciation rather than a reverse stock split, suggests organic market support rather than artificial price manipulation.

Think of it like this: Innoviz just renewed its "membership card" to the exclusive Nasdaq club. Getting kicked out would have meant losing access to many big investors who can only buy Nasdaq-listed stocks. While staying in the club doesn't guarantee success, getting kicked out would have made it much harder for the company to raise money and grow in the future.

TEL AVIV, Israel, Jan. 2, 2025 /PRNewswire/ -- Innoviz Technologies Ltd. (Nasdaq: INVZ) (the "Company" or "Innoviz"), a leading Tier-1 direct supplier of high-performance, automotive-grade LiDAR sensors and perception software, today announced that it received formal written confirmation from The Nasdaq Stock Market, LLC ("Nasdaq") confirming that the Company has regained compliance with Nasdaq's minimum bid price requirement.

The regaining of compliance is a result of the Company's closing bid price of the Company's ordinary shares (the "Shares") being at least $1.00 for at least 10 consecutive business days prior to January 27, 2025 deadline, as described in the initial notice from Nasdaq to the Company dated July 30, 2024.

The closing bid price of the Shares has been at $1.00 per Share or greater for 10 consecutive business days from December 16 to December 30, 2024. Accordingly, Nasdaq Listing Qualifications Staff has notified the Company that it has determined that the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2), and the matter is now closed.

About Innoviz
Innoviz is a global leader in LiDAR technology, serving as a Tier-1 supplier to the world's leading automotive manufacturers and working towards a future with safe autonomous vehicles on the world's roads. Innoviz's LiDAR and perception software "see" better than a human driver and reduce the possibility of error, meeting the automotive industry's strictest expectations for performance and safety. Operating across the U.S., Europe, and Asia, Innoviz has been selected by internationally recognized premium car brands for use in consumer vehicles as well as by other commercial and industrial leaders for a wide range of use cases. For more information, visit innoviz.tech.

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Media Contact
Media@innoviz-tech.com

Investor Contact
Investors@innoviz-tech.com

Forward Looking Statements
This announcement contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the listing of the Company's shares on Nasdaq and our ability to regain compliance with applicable Nasdaq rules.. 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 announcement. You should carefully consider such risk and the other risks and uncertainties described in Innoviz's annual report on Form 20-F filed with the SEC on March 12, 2024 and other documents filed by Innoviz 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. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Innoviz assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Innoviz gives no assurance that it will achieve its expectations. 

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SOURCE Innoviz Technologies

FAQ

When did INVZ regain compliance with Nasdaq's minimum bid price requirement?

Innoviz regained compliance after maintaining a closing bid price of at least $1.00 per share for 10 consecutive business days from December 16 to December 30, 2024.

What was the deadline for INVZ to regain Nasdaq compliance?

The deadline set by Nasdaq for Innoviz to regain compliance was January 27, 2025.

What is the minimum share price requirement for INVZ to maintain Nasdaq listing?

Innoviz must maintain a minimum bid price of $1.00 per share to comply with Nasdaq Listing Rule 5550(a)(2).

When did INVZ receive the initial non-compliance notice from Nasdaq?

Innoviz received the initial non-compliance notice from Nasdaq on July 30, 2024.