Phoenix Motor Inc. Announces Receipt of Nasdaq Listing Delinquency Letter

Rhea-AI Summary

Phoenix Motor Inc. (NASDAQ:PEV) has received a delinquency notification letter from Nasdaq due to non-compliance with Listing Rule 5250(c)(1). The company failed to timely file its Quarterly Reports on Form 10-Q for the periods ended March 31, 2024, and June 30, 2024. This follows a previous notification received on May 22, 2024, for the March 31 filing.

Phoenix Motor has until November 18, 2024, to regain compliance by submitting all delinquent filings. The company must provide an updated compliance plan by September 3, 2024. While the delinquency has no immediate effect on the stock's listing, failure to meet Nasdaq's requirements could lead to potential delisting. Phoenix Motor is working to complete and file the overdue reports as soon as possible.

Positive

• No immediate effect on the company's stock listing on Nasdaq
• Company retains the opportunity to submit a compliance plan to Nasdaq

Negative

• Non-compliance with Nasdaq Listing Rule 5250(c)(1)
• Failure to file Quarterly Reports (10-Q) for two consecutive quarters
• Risk of potential delisting if compliance is not regained by November 18, 2024
• Additional regulatory scrutiny and reporting requirements

Financial Analyst

Phoenix Motor's receipt of a second Nasdaq delinquency letter signals serious compliance issues that could jeopardize its listing status. The company's failure to file two consecutive quarterly reports (Q1 and Q2 2024) raises red flags about its financial reporting capabilities and internal controls. Investors should be cautious as this lack of transparency makes it difficult to assess the company's true financial health.

The November 18, 2024 deadline for regaining compliance provides some breathing room, but the company must act swiftly to address these issues. The market typically views such delinquencies negatively, often leading to increased volatility and potential downward pressure on stock price. If Phoenix Motor fails to meet Nasdaq's requirements, it risks delisting, which could severely impact liquidity and investor confidence.

Legal Expert

The multiple filing delinquencies expose Phoenix Motor to significant legal and regulatory risks. Failure to file timely reports violates SEC regulations and could lead to enforcement actions, including fines or more severe penalties. Shareholders might also consider legal action if they believe the company's non-compliance has caused them financial harm.

The company's need to submit an updated compliance plan by September 3, 2024, is crucial. If rejected, Phoenix Motor can appeal to a Nasdaq Hearings Panel, but this process can be costly and time-consuming. The company's statement of intent to file "as soon as practicable" lacks a concrete timeline, which may not satisfy Nasdaq's requirements for a robust compliance plan.

ANAHEIM, CA / ACCESSWIRE / August 21, 2024 / Phoenix Motor Inc. (NASDAQ:PEV) (the "Company") today announced that it received a delinquency notification letter from the Listing Qualifications Staff of the Nasdaq Stock Market LLC ("Nasdaq") on August 16, 2024 due to the Company's non-compliance with Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule") as a result of the Company's failure to timely file its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024. Previously, on May 22, 2024, the Company received a delinquency notification from Nasdaq that the Company no longer complied with the Listing Rule as it had not yet filed its Form 10-Q for the quarterly period ended March 31, 2024 (the "Initial Delinquent Filing").

The Listing Rule requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission. The deficiency letter has no immediate effect on the listing of the Company's common stock, and its common stock will continue to trade on The Nasdaq Capital Market under the symbol "PEV" at this time.

As a result of this additional delinquency, the Company is required to regain compliance with all delinquent filings within 180 calendar days from the due date of the Initial Delinquent Filing, or November 18, 2024. The Company must submit an update to its original plan to regain compliance with respect to the filing requirementsno later than September 3, 2024. The update must include the Company's plans to file its Form 10-Q for the quarterly period ended June 30, 2024 and indicate the progress the Company has made towards implementing the plan submitted in connection with the Initial Delinquent Filing. If the Company's plan to regain compliance is not accepted, Nasdaq rules would permit the Company to appeal the decision to reject the Company's proposed compliance plan to a Nasdaq Hearings Panel.

The Company is in the process of completing its Form 10-Q for the quarterly periods ended March 31, 2024 and June 30, 2024 and intends to file such reports as soon as practicable.

This announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification.

About Phoenix Motor Inc.

Phoenix Motor, a pioneer in the electric vehicle ("EV") industry, designs, builds, and integrates electric drive systems and manufactures heavy duty transit buses and medium and light duty commercial EVs. Phoenix operates two primary brands, "Phoenix", which is focused on commercial products including heavy and medium duty EVs (transit buses, shuttle buses, school buses and delivery trucks, among others) and "EdisonFuture", which intends to offer light-duty EVs. Phoenix endeavors to be a leading designer, developer and manufacturer of electric vehicles and electric vehicle technologies. To learn more, please visit: www.phoenixmotorcars.com.

Forward-Looking Statements

Certain information contained in this report consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that are difficult to predict. Words such as "will," "would," "may," "intends," "potential," and similar expressions, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and actual actions or events could differ materially from those contained in such statements. For example, there can be no assurance that Nasdaq will accept the Company's plan to regain compliance, that the Company will regain compliance with the Listing Rule during any compliance period or in the future, or otherwise meet Nasdaq continued listing standards, or that Nasdaq will grant the Company any relief from delisting as necessary or that the Company can ultimately meet applicable Nasdaq requirements for any such relief. For additional information about factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to the Company's filings with the SEC. The forward-looking statements contained in this report speak only as of the date of this report and the Company undertakes no obligation to publicly update any forward-looking statements to reflect changes in information, events or circumstances after the date of this report, unless required by law.

CONTACT:
Tyler Leach
Marketing Manager
PhoenixEV
846-436-7326
tleach@phoenixmotorcars.com

SOURCE: Phoenix Motor Inc.

View the original press release on accesswire.com

FAQ

Why did Phoenix Motor Inc. (PEV) receive a Nasdaq delinquency notification?

Phoenix Motor Inc. (PEV) received a Nasdaq delinquency notification for failing to timely file its Quarterly Reports on Form 10-Q for the periods ended March 31, 2024, and June 30, 2024, violating Nasdaq Listing Rule 5250(c)(1).

What is the deadline for Phoenix Motor Inc. (PEV) to regain compliance with Nasdaq listing rules?

Phoenix Motor Inc. (PEV) has until November 18, 2024, to regain compliance by submitting all delinquent filings to Nasdaq.

Will Phoenix Motor Inc.'s (PEV) stock continue trading on Nasdaq despite the delinquency notice?

Yes, Phoenix Motor Inc.'s (PEV) stock will continue trading on The Nasdaq Capital Market under the symbol 'PEV' for now, as the delinquency notice has no immediate effect on the listing.

What must Phoenix Motor Inc. (PEV) do to address the Nasdaq delinquency notification?

Phoenix Motor Inc. (PEV) must submit an updated compliance plan to Nasdaq by September 3, 2024, detailing how it will file the overdue reports and regain compliance with listing rules.