Powerbridge Technologies Co., Ltd. Requested a Hearing before the Nasdaq Hearings Panel after Received a Letter of Expected Delisting Determination from Nasdaq Staff
- None.
- The company is at risk of delisting from Nasdaq if it fails to appeal successfully or regain compliance with the minimum bid price requirement.
Insights
Upon examination of the situation surrounding Powerbridge Technologies Co., Ltd., it is evident that the company is facing significant challenges with respect to Nasdaq's minimum bid price requirement. The fluctuation in the company's share price, dipping below the $1.00 threshold, has triggered non-compliance with Nasdaq Listing Rule 5550(a)(2). This has led to a potential delisting scenario, which the company is actively trying to avert by requesting a hearing.
The volatility in the share price and the compliance issue are critical factors for investors to monitor, as they can lead to increased market uncertainty and potentially impact the stock's liquidity and the company's ability to raise capital. The hearing process and the company's plan to appeal based on recent compliance with the minimum bid price requirement will be closely watched by stakeholders.
It is important for investors to consider that even if the company regains compliance, maintaining it consistently will be essential to avoid future delisting risks. The company's consideration of alternative courses of action to regain compliance signals a proactive approach, yet it also underscores the inherent uncertainty in the company's ability to meet Nasdaq's continued listing requirements over the long term.
The legal implications of Powerbridge Technologies Co., Ltd.'s non-compliance with Nasdaq's Listing Rule 5550(a)(2) are significant. The company's right to a hearing is a procedural safeguard that allows it to present its case for continued listing. However, the Nasdaq Hearings Panel has the authority to uphold the delisting if compliance is not demonstrated satisfactorily.
The Notification Letter and the imposed Panel Monitor are critical components of this process. The company's failure to maintain the minimum bid price within the one-year monitoring period has led to the Staff's initial determination to delist the company's securities. While the company has appealed, the outcome is uncertain and could have a material impact on the company's legal standing on the stock market and its overall corporate governance.
Powerbridge Technologies Co., Ltd.'s struggle to maintain the minimum bid price requirement is a reflection of market sentiment and the company's valuation by investors. The repeated non-compliance with Nasdaq's Listing Rule 5550(a)(2) suggests underlying concerns about the company's financial health or market position. A delisting could significantly reduce the company's visibility to investors and limit access to capital markets, which is often crucial for technology companies that require significant investment to innovate and grow.
Furthermore, the company's ability to trade on Nasdaq pending the outcome of the hearing provides a temporary reprieve but does not eliminate the risk of delisting. The stock's performance and the company's ability to maintain compliance will be key determinants of its future on the exchange. Investors and other market participants will be monitoring the situation for any indicators of the company's long-term viability.
ZHUHAI,
Reference is made to the form 6-K of the Company filed with the Securities and Exchange Commission (the "SEC") on June 30, 2023 (the "Previous Disclosure") in relation to a panel monitor imposed on the Company, for a period of one year from June 27, 2023, of the Company's ongoing compliance (the "Panel Monitor"), after the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2). All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Previous Disclosure.
On August 11, 2023, the Company received the notice from the Listing Qualifications Staff (the "Staff") of Nasdaq notifying that, as of August 11, 2023, the Company's securities had a closing bid price less than
On October 6, 2023, the Company received a notification letter from the Staff of Nasdaq stating that, as of October 6, 2023, the closing bid price of the Company's ordinary shares has been at US
On November 30, 2023, the Company received the notice from the Staff of Nasdaq notifying that, as of November 30, 2023, the Company's securities had a closing bid price less than
On December 15, 2023, the Company received a notification letter (the "Notification Letter") from the Staff of Nasdaq stating that, according to the written notification the Company received from the Nasdaq Hearings Panel dated June 27, 2023, the one-year Panel Monitor was imposed on the Company from June 27, 2023, under Nasdaq Listing Rule 5815(d)(4)(A). According to the terms of the Panel Monitor, if, within that one-year monitoring period, the Staff finds the Company again out of compliance with the requirement that was the subject of the exception, notwithstanding Nasdaq Listing Rule 5810(c)(2), the Company will not be permitted to provide the Staff with a plan of compliance with respect to that deficiency and Staff will not be permitted to grant additional time for the Company to regain compliance with respect to that deficiency, nor will the company be afforded an applicable cure or compliance period pursuant to Nasdaq Listing Rule 5810(c)(3). Instead, the Staff will issue a delist determination letter and the Company will have an opportunity to request a hearing with the Nasdaq Hearings Panel.
The Notification Letter stated that unless the Company requested an appeal of the Staff's determination to delist its common shares, trading of the Company's securities will be suspended at the opening of business on December 27, 2023, and a Form 25-NSE will be filed with the SEC, which will remove the Company's securities from listing and registration on the Nasdaq.
As a result, the Staff had determined to delist the Company's securities from Nasdaq unless the Company requests a hearing no later than 4:00 p.m. Eastern Time on December 22, 2023. The Company timely submitted the request for a hearing to appeal Nasdaq's delisting determination on December 20, 2023, and was notified that the hearing is scheduled to be held on March 14, 2024. This request will ordinarily stay any further action made by the Staff and the Company's securities are expected to continue to be eligible to trade on Nasdaq at least pending the ultimate conclusion of the hearing process.
The Company plans to appeal on the basis that it has regained compliance with Nasdaq Listing Rule 5550(a)(2) as the closing bid price of its ordinary shares has been at US
The Company will continue to monitor the closing bid price of its ordinary shares and evaluate various alternative courses of action to regain compliance with the continued listing requirement under the Nasdaq Listing Rules. However, there can be no assurance that the Company will be able to satisfy the Nasdaq's continued listing requirements or maintain compliance with the other Nasdaq continued listing requirements.
About Powerbridge Technologies
Powerbridge Technologies Co., Ltd. (Nasdaq: PBTS) is a global provider of technology solutions and services across multiple industries. The Company is engaged in four segments of business: global trade digital platform and services, agritech and agribusiness solutions, integrated renewable energy and agribusiness solutions, and crypto equipment trading and cryptomining operations.
Safe Harbor Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may", "will", "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements; specifically, the Company's statements regarding listing on the NASDAQ Capital Market and the IPO are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in
CONTACT: Kelvin Chen, kelvinchan@powerbridge.com, 13318969081
View original content:SOURCE Powerbridge Technologies Co., Ltd.
FAQ
What is Powerbridge Technologies Co., Ltd.'s ticker symbol?
What is the reason for Powerbridge Technologies Co., Ltd.'s appeal to the Nasdaq Hearings Panel?
What are the consequences if Powerbridge Technologies Co., Ltd. fails to appeal successfully?
When is the hearing for Powerbridge Technologies Co., Ltd.'s appeal scheduled?
What is the basis for Powerbridge Technologies Co., Ltd.'s appeal to the Nasdaq Hearings Panel?
What are the potential risks for Powerbridge Technologies Co., Ltd. regarding its continued listing on Nasdaq?
