Pineapple Energy Regains Compliance With Nasdaq Minimum Bid Price Requirements

Rhea-AI Summary

Pineapple Energy (Nasdaq: PEGY) has regained compliance with Nasdaq Capital Market's minimum share price requirement, as its closing bid price remained above $1.00 per share for at least 10 consecutive trading days. The scheduled hearing before the Nasdaq Hearings Panel for November 21, 2024, has been cancelled, and the company's securities will continue to be listed and traded on The Nasdaq Stock Market. Interim CEO Scott Maskin described this as an important milestone in addressing past issues and positioning the company for sustainable success.

Positive

• Regained Nasdaq listing compliance, avoiding potential delisting
• Stock price maintained above $1.00 for 10+ consecutive trading days
• Continued listing on Nasdaq ensures better market visibility and liquidity

Negative

• Previous non-compliance with Nasdaq listing requirements indicates recent financial challenges

Insights

Financial Analyst

Regaining Nasdaq compliance removes a significant overhang from PEGY stock and reduces the immediate risk of delisting. However, this development alone doesn't address the company's fundamental business challenges in the competitive solar energy market. The $1 price maintenance is often achieved through artificial means like reverse stock splits, which don't improve underlying business performance.

While maintaining Nasdaq listing provides better access to capital markets and institutional investors, the company still needs to demonstrate operational improvements and sustainable growth to justify long-term investor confidence. The cancellation of the Nasdaq hearing reduces administrative burden and uncertainty, but investors should focus on upcoming financial results and business execution metrics.

RONKONKOMA, N.Y., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Pineapple Energy Inc. (Nasdaq: PEGY) (“Pineapple” or the “Company”), a leading provider of sustainable solar energy and backup power to households, businesses, municipalities, and for servicing existing systems, today announced that it has regained compliance with the Nasdaq Capital Market’s continued listing standard for the minimum share price requirement under Nasdaq Listing Rule 5550(a)(2).

The Nasdaq staff made this determination of compliance after the closing bid price of the Company’s common stock was above $1.00 per share for a minimum of 10 consecutive trading days.  

Nasdaq considers this matter closed and the Company’s securities will continue to be listed and traded on The Nasdaq Stock Market. As a result, the hearing before the Nasdaq Hearings Panel scheduled for November 21, 2024 is deemed moot and has been cancelled.

“This marks another important milestone in our hard-fought journey to address the issues of the past and position the Company for sustainable, long-term, success,” said Scott Maskin, Interim Chief Executive Officer. “On behalf our new management team and Board, we are grateful for the continuing support of our shareholders, partners, and employees during this process and we remain committed to enhancing long-term shareholder value.”

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, Hawaii Energy Connection, E-Gear, Sungevity, and Horizon Solar Power) provide homeowners and businesses of all sizes with 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. These statements are based on the Company’s current expectations or beliefs and are subject to uncertainty and changes in circumstances, including the Company’s expectations regarding its ability to effect the reverse stock split and regain compliance with Nasdaq’s continued listing standards. While the Company believes its plans, intentions, and expectations reflected in those forward-looking statements are reasonable, these plans, intentions, or expectations may not be achieved. For information about the factors that could cause such differences, please refer to the Company’s filings with the Securities and Exchange Commission, including, without limitation, the statements made under the heading “Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and in subsequent filings. The Company does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.

Safe Harbor Statement
Our prospects here at Pineapple Energy Inc. are subject to uncertainties and risks. This news release (video statement) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.

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

Why did Pineapple Energy (PEGY) regain Nasdaq compliance?

Pineapple Energy regained Nasdaq compliance because its closing bid price remained above $1.00 per share for at least 10 consecutive trading days, meeting the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2).

What happens to PEGY's scheduled Nasdaq hearing on November 21, 2024?

The Nasdaq hearing scheduled for November 21, 2024, has been cancelled as it is now deemed moot due to the company regaining compliance with listing requirements.

Will Pineapple Energy (PEGY) continue trading on Nasdaq?

Yes, Pineapple Energy will continue to be listed and traded on The Nasdaq Stock Market as it has regained compliance with the minimum share price requirement.