Adamas One Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1)

Rhea-AI Summary

Adamas One Corp. received a notification from Nasdaq regarding non-compliance with filing requirements for its Annual Report on Form 10-K. The company has until March 19, 2024, to file the report or submit a plan to regain compliance. Failure to do so may lead to delisting from Nasdaq. The company is working to file the report promptly to avoid the need for a formal compliance plan.

Positive

• None.

Negative

• Non-compliance with Nasdaq filing requirements may lead to delisting if not rectified in time.

Insights

Financial Analyst

The notification received by Adamas One Corp. from Nasdaq regarding non-compliance with the listing rule due to a delayed filing of its Annual Report signifies potential underlying issues in financial reporting or internal controls. Stakeholders should be aware that such delays can often result from complex financial transactions, accounting adjustments, or even potential operational setbacks. It is crucial to monitor the company's next steps closely, as their ability to file within the provided grace period or to present a viable compliance plan will be indicative of their financial management's robustness.

Investors should also consider the implications of a delisting scenario. While delisting does not necessarily reflect on the company's market value or operational performance, it can affect stock liquidity and market perception. The risk of increased volatility and decreased investor confidence could impact the stock's performance in the short term. In the long term, the company's adherence to compliance requirements and the transparency of its financial reporting will be critical in maintaining investor trust and market stability.

Legal Expert

From a legal perspective, Adamas One Corp.'s situation highlights the importance of adhering to regulatory requirements, such as the timely filing of annual reports mandated by the SEC. The Nasdaq Listing Rule 5250(c)(1) is designed to ensure that investors have access to essential financial information on a regular basis and non-compliance can lead to severe consequences, including delisting. The company's response to this notification and its ability to file the overdue report or submit a compliance plan within the given timeframe will be crucial in avoiding further legal and regulatory complications.

Should the company face delisting, it would have the right to appeal to a Nasdaq Hearings Panel, which introduces another layer of legal proceedings. This process can be resource-intensive and may divert attention from the company's core operations. Shareholders and potential investors should be aware of the legal ramifications and the associated costs that the company might incur during this period.

Market Research Analyst

Examining the broader market implications, Adamas One Corp.'s delay in filing its Annual Report could be symptomatic of broader challenges faced by the lab-grown diamond industry. Issues such as supply chain disruptions, technological advancements, or shifts in consumer preferences can significantly affect a company's operations and financial stability. A thorough market analysis would be required to understand if Adamas One's situation is an outlier or part of a larger trend within the sector.

Market participants should consider the competitive landscape and the company's market position when evaluating the potential impact of this news. If Adamas One can quickly rectify the filing delay and demonstrate operational efficiency, it may mitigate negative market perceptions and maintain its competitive edge. Conversely, prolonged uncertainty could benefit competitors and alter market dynamics.

SCOTTSDALE, Ariz., Jan. 25, 2024 /PRNewswire/ -- Adamas One Corp. (Nasdaq: JEWL) ("Adamas One," "Adamas" or the "Company"), The Original Lab-Grown Diamond Company™, a high-tech company that leverages proprietary technology to produce high-quality, single-crystal, Lab-Grown Diamonds for jewelry and diamond materials for industrial uses, today reports that, on January 19, 2024, it received a letter from the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it was not in compliance with requirements of Nasdaq Listing Rule 5250(c)(1) (the "Nasdaq Listing Rule") as a result of not having timely filed its Annual Report on Form 10-K for the year ended September 30, 2023 (the "Annual Report 2023 Form 10-K") with the Securities and Exchange Commission ("SEC").

This notification has no immediate effect on the listing of the Company's common stock on Nasdaq. However, if the Company fails to timely regain compliance with the Nasdaq Listing Rule, the Company's common stock will be subject to delisting from Nasdaq.

Pursuant to the notification, the Company has until March 19, 2024 to file the Annual Report 2023 Form 10-K or to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rule. If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to 180 days from the prescribed due date for filing the Annual Report 2023 Form 10-K to regain compliance. If Nasdaq does not accept the Company's plan, then the Company will have the opportunity to appeal that decision to a Nasdaq Hearings Panel.

The Company is working diligently and expects to file its Annual Report 2023 Form 10-K shortly, which would eliminate the need for the Company to submit a formal plan to regain compliance.

About Adamas One Corp.

Adamas is a lab-grown diamond manufacturer that produces near flawless single-crystal diamonds for gemstone and industrial applications, in its facilities in Greenville, South Carolina. The Company holds 36 patents and uses its proprietary chemical vapor deposition (CVD) to grow gem-sized and smaller diamond crystals. Adamas One^™ lab-grown diamonds have the same physical, chemical and optical properties as mined diamonds. The Company's controlled manufacturing processes enables it to produce very high-quality, high-purity, single-crystal colorless, near colorless and fancy colored Type IIA diamonds to suit a variety of industrial and gemstone applications. The Company intends to market and sell its diamonds into the wholesale jewelry and industrial markets. For more information, visit www.adamasone.com.

Not Mined. Not Fake.  Just Sped Up Perfection. ™

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. To the extent that the information presented in this press release discusses financial projections, information, or expectations about our business plans, results of operations, products or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as "should", "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in documents that we file from time to time with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of the document in which they are contained, and Adamas One Corp. does not undertake any duty to update any forward-looking statements except as may be required by law. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

For more information contact:

Investor Relations
CORE IR
Scott Arnold, Managing Partner
516 222 2560
ir@adamasone.com

Media Relations
CORE IR
Jules Abraham
917 885 7378

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SOURCE Adamas One Corp

FAQ

What notification did Adamas One Corp. receive from Nasdaq?

Adamas One Corp. received a notification from Nasdaq regarding non-compliance with filing requirements for its Annual Report on Form 10-K.

What is the deadline for Adamas One Corp. to file the Annual Report 2023 Form 10-K?

The company has until March 19, 2024, to file the report or submit a plan to regain compliance.

What happens if Adamas One Corp. fails to timely regain compliance with the Nasdaq Listing Rule?

Failure to timely regain compliance may lead to delisting from Nasdaq.

What is the company doing to rectify the situation?

The company is working to file the report promptly to avoid the need for a formal compliance plan.