National Energy Services Reunited Corp. Announces Receipt of Notice from Nasdaq Regarding Late Filing of Annual Report on Form 20-F

Rhea-AI Summary

National Energy Services Reunited Corp. (NASDAQ:NESR, NASDAQ:NESRW) announced it received a notice from Nasdaq on May 6, 2022, regarding non-compliance with timely filing requirements due to the delayed submission of its annual report on Form 20-F for the year ended December 31, 2021. The company must submit a plan by July 5, 2022, to regain compliance, with a potential extension until October 31, 2022, if accepted. This notice does not affect the trading status of its securities on Nasdaq. NESR is working on completing the Form 20-F, impacted by the ongoing restatement of prior financial statements.

Positive

• Company continues to trade on Nasdaq, indicating no immediate delisting.
• Management is actively working to complete and file the necessary Form 20-F.

Negative

• The company faces compliance issues with Nasdaq due to late filing of the Form 20-F.
• Financial restatements are required for fiscal years 2018-2020, creating uncertainty.

HOUSTON, TX / ACCESSWIRE / May 11, 2022 / National Energy Services Reunited Corp. ("NESR" or the "Company") (NASDAQ:NESR)(NASDAQ:NESRW), a national, industry-leading provider of integrated energy services in the Middle East and North Africa ("MENA") and Asia Pacific regions, today announced that it received a written notice (the "Notice") from the Nasdaq Capital Market ("Nasdaq") on May 6, 2022, stating that because the Company has not yet filed its annual report on Form 20-F for the year ended December 31, 2021 (the "Form 20-F"), the Company was not in compliance with the Nasdaq's continued listing requirements under the timely filing criteria established in Nasdaq Listing Rule 5250(c)(1) ("Rule 5250(c)(1)"). Rule 5250(c)(1) requires timely filing of all required periodic reports with the Securities and Exchange Commission ("SEC") on or prior to the due date thereof or by the extended filing due date provided by Rule 12b-25.

The Notice states that the Company is required to submit a plan by July 5, 2022, to regain compliance with Rule 5250(c)(1). If the plan is accepted by Nasdaq, then Nasdaq can grant the Company up to 180 calendar days from the due date of the Form 20-F to regain compliance, or until October 31, 2022. The Notice has no immediate impact on the listing of the Company's securities, which will continue to trade on the Nasdaq, subject to the Company's compliance with the other continued listing requirements of the Nasdaq. As previously disclosed by the Company on its Form 12b-25 filed with the SEC on May 3, 2022, the Company's Form 20-F for the year ended December 31, 2021, cannot be filed by the prescribed due date without unreasonable effort and expense because the Company requires additional time to complete the previously announced restatement of the Company's consolidated financial statements for the fiscal years ended December 31, 2018, 2019 and 2020.

The Company is working diligently to complete the Form 20-F as soon as possible.

About National Energy Services Reunited Corp.

Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 5,000 employees, representing more than 60 nationalities in over 15 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services.

Forward-Looking Statements

This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact may be deemed forward-looking statements, including statements regarding the Company's ongoing review and restatement work with respect to the consolidated financial statements for the fiscal years ended December 31, 2018, 2019 and 2020 and the Company's expectation with respect to the estimated impact of the restatement discussed in this Form 12b-25. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, statements regarding the potential scope and timing of the financial restatement, plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, and the assumptions underlying or relating to any such statement.

The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: the amount, scope and timing of any financial restatement that may be required, information that may be discovered in the course of the Company's completion of the reconciliations of its financial results and related analysis; the possibility that the Nasdaq may delist the Company's securities; the possibility that the Company will not be able to become current in its filings with the SEC; the ability to recognize the anticipated benefits of the Company's recent business combination transaction, which may be affected by, among other things, the price of oil, natural gas, natural gas liquids, competition, the Company's ability to integrate the businesses acquired and the ability of the combined business to grow and manage growth profitably; integration costs related to the Company's recent business combination; estimates of the Company's future revenue, expenses, capital requirements and the Company's need for financing; the risk of legal complaints and proceedings and government investigations; the Company's financial performance; success in retaining or recruiting, or changes required in, the Company's officers, key employees or directors; current and future government regulations; developments relating to the Company's competitors; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic and market conditions, political disturbances, war, terrorist acts, international currency fluctuations, business and/or competitive factors; and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC").

You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.

For inquiries regarding NESR, please contact:
Blake Gendron
National Energy Services Reunited Corp.
832-925-3777
investors@nesr.com

SOURCE: National Energy Services Reunited Corp

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FAQ

What triggered the Nasdaq notice for NESR on May 6, 2022?

NESR received a notice from Nasdaq due to the late filing of its Form 20-F for the year ended December 31, 2021.

What does NESR need to do to regain compliance with Nasdaq?

NESR must submit a compliance plan by July 5, 2022, to address the late filing issue.

What is the deadline for NESR to regain Nasdaq compliance?

If the plan is accepted, NESR could have until October 31, 2022, to regain compliance.

How does the Nasdaq notice affect NESR's stock?

The notice does not have an immediate impact on the trading of NESR's securities, which will continue to be listed.

What are the implications of NESR's financial restatement?

NESR's financial restatement for 2018-2020 could create uncertainty regarding its financial performance.