JE Cleantech Holdings Limited Announces Grant of Temporary Exception to remain listed on Nasdaq

Rhea-AI Summary

JE Cleantech Holdings (Nasdaq: JCSE) has received a temporary exception from Nasdaq to remain listed, despite non-compliance with the Bid Price Rule. The company has until December 6, 2024, to regain compliance by effecting a reverse stock split and maintaining a $1 closing bid price for at least ten consecutive business days. Key milestones include:

• Obtaining shareholder approval for the reverse stock split by November 14, 2024
• Implementing the reverse stock split by November 21, 2024
• Demonstrating compliance with the Bid Price Rule by December 6, 2024

Failure to meet these requirements could result in delisting. CEO HONG Bee Yin expressed the company's intention to meet the milestones and maintain Nasdaq listing.

Positive

• Granted temporary exception to remain listed on Nasdaq
• Given until December 6, 2024 to regain compliance with Bid Price Rule
• Opportunity to implement reverse stock split to meet listing requirements

Negative

• Risk of delisting if compliance is not achieved by December 6, 2024
• Need for shareholder approval of reverse stock split by November 14, 2024
• Requirement to maintain $1 closing bid price for 10 consecutive business days

SINGAPORE, July 16, 2024 (GLOBE NEWSWIRE) -- JE Cleantech Holdings Limited (Nasdaq: JCSE), a precision cleaning and cleantech equipment manufacturer, announced that on July 15, 2024, it received a letter (the “Exception Letter”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”). The Exception Letter gave the Company a temporary exception to regain compliance with The Nasdaq Stock Market LLC’s (“Nasdaq” or the “Exchange”) Listing Rule 5550(a)(2) (the “Bid Price Rule”).

The Exception Letter stated:

Accordingly, the Company is granted an exception until December 6, 2024, to effect the reverse stock split and thereafter regain compliance with the Bid Price Rule, subject to the milestones outlined below. In the event the Company fails to regain compliance with the Bid Price Rule by that date, its securities will be delisted.

1. On or before November 14, 2024, the Company shall obtain shareholders approval for a reverse stock split at a ratio that satisfies the minimum requirement in the Bid Price Rule;
2. On or before November 21, 2024, the Company shall effect a reverse stock split and, thereafter, maintain a $1 closing bid price for a minimum of ten consecutive business days;
3. On or before December 6, 2024, the Company shall have demonstrated compliance with the Bid Price Rule, by evidencing a closing bid price of $1 or more per share for a minimum of ten consecutive trading sessions.
   

The Panel reserves the right to reconsider the terms of this exception based on any event, condition or circumstance that exists or develops that would, in the opinion of the Panel, make continued listing of the Company’s securities on the Exchange inadvisable or unwarranted. In that regard, the Panel advises the Company that it is a requirement during the exception period that the Company provide prompt notification of any significant events that occur during this time that may affect the Company’s compliance with Nasdaq requirements. This includes, but is not limited to, prompt advance notice of any event that may call into question the Company’s ability to meet the terms of the exception granted.

“We are pleased that the Hearings Panel has granted the Company this temporary exception because we recognize the value to our shareholders of the Nasdaq listing and intend to meet the milestones set by the Hearings Panel and remain listed,” stated Ms. HONG Bee Yin, CEO and Founder of JE Cleantech.

About JE Cleantech Holdings Limited

JE Cleantech Holdings Limited is based in Singapore and is principally engaged in (i) the sale of cleaning systems and other equipment; and (ii) the provision of centralized dishwashing and ancillary services. Through its subsidiary, JCS-Echigo Pte Ltd, the company designs, develops, manufactures, and sells cleaning systems for various industrial end-use applications primarily to customers in Singapore and Malaysia. Its cleaning systems are mainly designed for precision cleaning, with features such as particle filtration, ultrasonic or megasonic rinses with a wide range of frequencies, high pressure drying technology, high flow rate spray, and deionized water rinses, which are designed for effective removal of contaminants and to minimize particle generation and entrapment. The Company also has provided centralized dishwashing services, through its subsidiary, Hygieia Warewashing Pte Ltd, since 2013 and general cleaning services since 2015, both mainly for food and beverage establishments in Singapore. For more information about JE Cleantech, please visit our website: www.jecleantech.sg.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “may,” “will,” “should,” “believe,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “continue,” “predict,” “project,” “potential,” “target,” “goal,” or other similar expressions in this announcement. These forward-looking statements include, without limitation, the Company’s expectations with respect to future performance and anticipated potential financial impacts. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s Form 20-F, and other filings with the United States Securities and Exchange Commission.

Contact:

Jason Long
Email address: enquiry@jecleantech.sg
Phone number: +65 63684198
Other number: +65 66029468

FAQ

What is the deadline for JE Cleantech (JCSE) to regain compliance with Nasdaq's Bid Price Rule?

JE Cleantech (JCSE) has until December 6, 2024, to regain compliance with Nasdaq's Bid Price Rule.

What action is JE Cleantech (JCSE) required to take to maintain its Nasdaq listing?

JE Cleantech (JCSE) is required to effect a reverse stock split and maintain a $1 closing bid price for a minimum of ten consecutive business days.

By what date must JE Cleantech (JCSE) obtain shareholder approval for the reverse stock split?

JE Cleantech (JCSE) must obtain shareholder approval for the reverse stock split by November 14, 2024.

What happens if JE Cleantech (JCSE) fails to meet Nasdaq's compliance requirements?

If JE Cleantech (JCSE) fails to meet Nasdaq's compliance requirements by December 6, 2024, its securities will be delisted from the exchange.