Pineapple Energy Regains Compliance With Nasdaq Equity Listing Rule

Rhea-AI Summary

Pineapple Energy Inc. (Nasdaq: PEGY) has successfully regained compliance with Nasdaq's equity listing requirements. The company, a leading provider of sustainable solar energy and back-up power solutions, now meets the Nasdaq Capital Market's Equity Rule (Listing Rule 5550(b)(1)), which mandates a minimum stockholders' equity of $2,500,000. This achievement follows Pineapple's recent compliance with Nasdaq's Bid Price listing requirements.

As part of the compliance issuance, PEGY will be subject to a Mandatory Panel Monitor for one year. Interim CEO Scott Maskin emphasized that regaining compliance has been a top priority since he assumed leadership in May 2024, demonstrating the company's commitment to its shareholders.

Positive

• Regained compliance with Nasdaq's Equity Rule, maintaining listing on Nasdaq Capital Market
• Met minimum stockholders' equity requirement of $2,500,000
• Previously regained compliance with Nasdaq's Bid Price listing requirements

Negative

• Subject to a Mandatory Panel Monitor for one year

Insights

Financial Analyst

Pineapple Energy's regained compliance with Nasdaq's Equity Rule is a significant development for the company and its investors. This achievement demonstrates the company's commitment to maintaining its listing status and improving its financial position. Here are some key points to consider:

• The compliance with Rule 5550(b)(1) indicates that Pineapple Energy now has stockholders' equity of at least $2,500,000, which is a positive sign for the company's financial health.
• This development, coupled with the previous compliance with Nasdaq's Bid Price listing requirements, suggests that the management team led by Interim CEO Scott Maskin is making progress in addressing regulatory concerns.
• The implementation of a Mandatory Panel Monitor for one year implies that Nasdaq will be closely watching Pineapple Energy's continued compliance, which could provide additional assurance to investors.
• However, it's important to note that while regaining compliance is a positive step, it doesn't necessarily reflect the overall financial performance or growth prospects of the company. Investors should still carefully examine Pineapple Energy's financial statements, market position and growth strategy.
• The solar energy sector faces both opportunities and challenges, including potential policy changes, technological advancements and market competition. These factors should be considered when evaluating Pineapple Energy's long-term prospects.

While this news is certainly positive for Pineapple Energy, investors should remain cautious and continue to monitor the company's financial performance and strategic initiatives in the coming quarters to assess its ability to maintain compliance and drive sustainable growth.

Legal Expert

The regaining of compliance with Nasdaq's Equity Rule by Pineapple Energy has significant legal and regulatory implications. Let's break down the key aspects:

• Compliance with Listing Rule 5550(b)(1) is important for maintaining Pineapple Energy's listing on the Nasdaq Capital Market. This achievement reduces the immediate risk of delisting, which could have had severe consequences for the company's access to capital and investor confidence.
• The implementation of a Mandatory Panel Monitor for one year is a standard procedure for companies that have recently regained compliance. This oversight mechanism ensures that Pineapple Energy maintains its newly achieved status and adheres to Nasdaq's requirements consistently.
• From a corporate governance perspective, this development reflects positively on the management's ability to address regulatory challenges. It demonstrates their commitment to meeting the standards required of publicly traded companies.
• Investors should be aware that while compliance has been regained, the company will be under increased scrutiny. Any future non-compliance could potentially lead to more severe consequences, given the recent history.
• The company's ability to maintain compliance moving forward will be crucial. This may influence strategic decisions, such as capital allocation, to ensure the stockholders' equity remains above the $2,500,000 threshold.

While this development mitigates immediate regulatory risks, investors should continue to monitor the company's ongoing compliance efforts and financial strategies to ensure long-term stability in its listing status.

RONKONKOMA, N.Y., July 31, 2024 (GLOBE NEWSWIRE) -- Pineapple Energy Inc. (Nasdaq: PEGY) (“Pineapple” or the “Company”), a leading provider of sustainable solar energy and back-up power to households and small businesses, has regained compliance with Nasdaq’s equity requirements.  

Pineapple’s newly regained compliance relates to Listing Rule 5550(b)(1), also known commonly as the “Equity Rule,” which requires for companies listed on the Nasdaq Capital Market to maintain stockholders' equity of at least $2,500,000. As part of the issuance of compliance by Nasdaq, the Company will be subject to a Mandatory Panel Monitor for the period of one (1) year.

“Yet again, we’ve hit another key milestone on Pineapple’s path to success. Between regaining compliance with Nasdaq’s Bid Price listing requirements and now with the Equity Rule, we’re showing that we are taking our responsibilities to our trusted shareholders seriously,” Scott Maskin, Interim CEO of Pineapple Energy said.

Restoring compliance has been a top priority of Maskin’s management team since he assumed Pineapple’s top leadership role back in May of this year.

About Pineapple Energy

Pineapple is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Our vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage. Our portfolio of brands (SUNation Energy, Hawaii Energy Connection, E-Gear) provide those within the Residential and Commercial sectors an end-to-end product offering spanning solar, battery storage, and grid services.

Forward-Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth, and future opportunities, including the prospect of future capital-raising activities. These statements are based on Pineapple’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements here due to changes in economic, business, competitive or regulatory factors, and other risks and uncertainties, set forth in Pineapple’s filings with the Securities and Exchange Commission. The forward-looking statements in this press release speak only as of the date of this press release. Pineapple does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.

Contacts:
Scott Maskin
Interim Chief Executive Officer
+1 (631) 823-7131
scott.maskin@pineappleenergy.com

Pineapple Investor Relations
+1 (952) 996-1674
IR@pineappleenergy.com

FAQ

What Nasdaq listing rule did Pineapple Energy (PEGY) regain compliance with?

Pineapple Energy (PEGY) regained compliance with Nasdaq's Listing Rule 5550(b)(1), also known as the 'Equity Rule', which requires companies listed on the Nasdaq Capital Market to maintain stockholders' equity of at least $2,500,000.

When did Scott Maskin become Interim CEO of Pineapple Energy (PEGY)?

Scott Maskin assumed the role of Interim CEO of Pineapple Energy (PEGY) in May 2024.

What monitoring will Pineapple Energy (PEGY) be subject to after regaining Nasdaq compliance?

After regaining Nasdaq compliance, Pineapple Energy (PEGY) will be subject to a Mandatory Panel Monitor for a period of one year.

What other Nasdaq listing requirement did Pineapple Energy (PEGY) recently regain compliance with?

Pineapple Energy (PEGY) recently regained compliance with Nasdaq's Bid Price listing requirements, in addition to the Equity Rule compliance.