Adamas One Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1)
- None.
- Potential delisting from Nasdaq if compliance is not regained within the specified timeline.
Insights
Adamas One Corp's non-compliance with Nasdaq's filing requirements is a significant concern for investors, as it can lead to potential delisting if not addressed promptly. Delisting from a major exchange like Nasdaq can substantially reduce a stock's liquidity and investor confidence, often resulting in a lower stock price. The delay in filing financial reports might indicate operational or financial issues within the company, which require a closer examination of its internal controls and financial health once the reports are filed.
The company's plan to file the overdue reports within the given timeframe is crucial to maintain its listing status. Investors should monitor the company's ability to meet this deadline as it will be indicative of the management's capability to resolve the current administrative challenges. It is also important to analyze the content of the upcoming reports for any signs of financial distress or discrepancies that might have led to the filing delay.
Adamas One Corp's failure to file its annual and quarterly reports in a timely manner raises legal and regulatory concerns. The Nasdaq Listing Rule 5250(c)(1) mandates timely financial reporting to ensure transparency and protect investors. Non-compliance can result in severe consequences, including delisting, which may suggest deeper governance issues. The company's ability to submit a plan for regaining compliance or to appeal a negative decision to a Nasdaq Hearings Panel is part of the due process rights afforded to listed companies.
Investors should be aware of the legal implications of such non-compliance, as it could lead to increased scrutiny from the SEC and potentially result in penalties or enforcement actions. The legal processes involved in regaining compliance or appealing a delisting decision can also be time-consuming and costly for the company.
The lab-grown diamond industry is a niche but rapidly growing segment of the broader gemstone market. Adamas One Corp's position as a producer of lab-grown diamonds for both jewelry and industrial applications gives it exposure to diverse market opportunities. However, the delay in financial reporting may cast doubt on the company's market performance and operational efficiency.
Understanding the company's market share, competitive landscape and innovation capabilities will be essential once the financial reports are filed. Investors should look for insights into how Adamas One's proprietary technology and production capacity are translating into financial performance and what strategies the company is implementing to capitalize on the growing demand for lab-grown diamonds.
SCOTTSDALE, Ariz., Feb. 23, 2024 (GLOBE NEWSWIRE) -- 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 February 16, 2024, it received a letter from the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it is 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 “2023 Annual Report”) and not having timely filed its Quarterly Report on Form 10-Q for the period ended December 31, 2023 (“Q1 2024 Quarterly Report”) 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 both the 2023 Annual Report and the Q1 2024 Quarterly Report, or to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rule for these delinquent reports. If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to 180 days from the original due date of the 2023 Annual Report, or until July 16, 2024 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 2023 Annual Report shortly and to file its Q1 2024 Quarterly Report within approximately three weeks after the filing of the 2023 Annual Report, 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.
Source: Adamas One Corp
FAQ
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