JE Cleantech Holdings Limited Announces Receipt of NASDAQ Notification Regarding Minimum Bid Price Deficiency
- None.
- The company received a notification about failing to maintain the minimum bid price for its ordinary shares, which may lead to delisting if not resolved by June 11, 2024.
The notification received by JE Cleantech Holdings Limited regarding its non-compliance with Nasdaq's Minimum Bid Price Requirement is a significant regulatory development with potential implications for the company's stock liquidity and investor perception. The stipulated 180-day period to regain compliance is a critical timeframe during which the company must elevate its share price above the $1.00 threshold for at least 10 consecutive business days.
From a financial perspective, this situation creates a sense of urgency for JE Cleantech to bolster investor confidence and operational performance, potentially through strategic initiatives or financial restructuring. The possibility of delisting, if compliance is not achieved, could lead to reduced market visibility and investor access, impacting the stock's tradability and potentially its valuation.
For investors, the short-term focus will likely be on the company's efforts to improve its stock price, while long-term considerations include the company's ability to sustain compliance and deliver value. The CEO's commitment to improved performance is reassuring, however, tangible actions and results will be pivotal in determining the future course for the company's Nasdaq listing status.
The impact of Nasdaq's notification on JE Cleantech's operations appears minimal at this juncture, as the company has affirmed that its business operations remain unaffected. However, the broader implications for the industry could be significant. A delisting could signal to the market that companies within the cleaning systems manufacturing sector are facing challenges that affect their stock performance.
Competitors and stakeholders within the industry will be monitoring JE Cleantech's response closely, as it may set a precedent for how similar companies might address such regulatory hurdles. Furthermore, the company's strategy to regain compliance could include industry-specific measures, such as product innovation or market expansion, which could have competitive implications.
It is essential to observe industry norms regarding stock performance and regulatory compliance, as deviations could indicate underlying sectoral shifts or company-specific issues. JE Cleantech's situation could serve as a bellwether for the financial health and regulatory standing of comparable firms within the industry.
Legally, the receipt of a Nasdaq Notification is a procedural matter that triggers specific compliance obligations under the Nasdaq Listing Rules. JE Cleantech's acknowledgment of the notification and its outlined path to regain compliance demonstrates an understanding of the legal framework governing its listing.
The company's potential recourse to an appeal process or a transfer to alternative markets such as the OTCQX highlights the legal avenues available to publicly traded companies facing delisting. These options, while providing a safety net, come with their own set of legal and regulatory considerations that could affect the company's governance and reporting requirements.
It is important for the company to diligently pursue remedial measures within the given timeframe to avoid the legal complexities and potential reputational harm associated with delisting procedures. The company's legal team will play a crucial role in navigating these regulatory waters and ensuring compliance with all applicable securities laws and exchange requirements.
SINGAPORE, Dec. 19, 2023 (GLOBE NEWSWIRE) -- JE Cleantech Holdings Limited (Nasdaq: JCSE), a manufacturer of a broad range of cleaning systems, announced that on December 14, 2023, it received a written notification from the Listing Qualifications Department of The Nasdaq Stock Market LLC (the “Nasdaq Notification”). The Notification stated that the Company’s ordinary shares failed to maintain a minimum bid price of
Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of 180 calendar days from the date of the Nasdaq Notification, or until June 11, 2024, to regain compliance with the Minimum Bid Requirement. If at any time before June 11, 2024, the closing bid of the Company’s ordinary shares is at least
In the event that the Company does not regain compliance by June 11, 2024, the Company may be eligible for additional time to qualify. To qualify for 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 The Nasdaq Capital Market with the exception of the bid price requirement.
In the event that the Company does not regain compliance with the Minimum Bid Price Requirement by June 11, 2024, and is ineligible for an additional grace period, Nasdaq will provide further written notice that the Company’s ordinary shares are subject to delisting from The Nasdaq Capital Market. In that event, the Company may appeal the determination to a Nasdaq hearings panel or consider transferring the listing and trading of its ordinary shares to the OTCQX of the OTC Markets.
The Company intends to monitor the closing bid price of its ordinary shares. Receipt of the Nasdaq Notification has no effect on the Company’s business operations.
“We are cognizant of the value to our shareholders of the listing of our shares on Nasdaq given the liquidity and pricing efficiency that the exchange provides. We pledge our best efforts towards improved performance which we believe will allow us to meet the continued listing standards,” stated Ms. Bee Yin Hong, 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
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