Phoenix Motor Inc. Announces Receipt of Nasdaq Listing Delinquency Letter
Phoenix Motor announced that it received a delinquency notification letter from Nasdaq on May 22, 2024, due to its failure to timely file its Quarterly Report on Form 10-Q for the period ending March 31, 2024. This non-compliance with Nasdaq Listing Rule 5250(c)(1) does not immediately affect the company's stock listing, which continues to trade under the symbol 'PEV'. According to Nasdaq rules, Phoenix Motor has until July 22, 2024, to submit a plan to regain compliance, potentially extending the deadline to November 18, 2024, if accepted. The company is working to complete and file the Form 10-Q promptly.
- The company's stock continues to trade on Nasdaq despite the delinquency notification.
- Phoenix Motor has a 60-day window to submit a compliance plan, offering a chance to extend the deadline further.
- The company failed to timely file its Quarterly Report on Form 10-Q, indicating potential organizational or financial issues.
- Receiving a delinquency notification may negatively impact investor confidence.
- Non-compliance with Nasdaq Listing Rule 5250(c)(1) could lead to potential delisting if the company fails to comply within the given timeframe.
Insights
Receiving a delinquency notification from Nasdaq is a significant event for any company, as it highlights potential operational and financial management issues. In this case, Phoenix Motor Inc.'s failure to file its quarterly report on time raises red flags about its internal processes, which could create uncertainty for investors.
For retail investors, it's important to understand that while the delinquency letter itself doesn't immediately affect the company's stock listing, it signals a potential risk. If the company fails to submit a satisfactory compliance plan by the given deadlines, it could face delisting, which would severely impact the stock's liquidity and potentially its value.
Investors should also consider the broader implications of this lapse in compliance. Delays in financial reporting might indicate deeper issues within the company's financial health or management capabilities. Monitoring how quickly and transparently the company rectifies this situation will be important in assessing its longer-term viability.
Key Takeaway: Stay cautious and watch for the company's next steps in addressing this compliance issue. The timely filing of the Form 10-Q and the acceptance of their compliance plan by Nasdaq will be critical indicators of their operational stability.
From a legal perspective, the issuance of a delinquency letter is a formal notification of non-compliance with regulatory requirements. Nasdaq Listing Rule 5250(c)(1) mandates timely filings to maintain transparency and integrity in the market. Failure to comply with these rules can lead to severe consequences, including potential delisting from one of the most prestigious stock exchanges.
For Phoenix Motor Inc., the immediate legal implication is the necessity to submit a compliance plan within 60 days. This plan must convincingly outline how the company will rectify the delinquency and comply with future filing requirements. If the plan is rejected, the company would still have the opportunity to appeal, but this process can be both lengthy and resource-intensive.
Key Takeaway: Investors should closely monitor the company's compliance plan submission and Nasdaq's response. A successful compliance plan means the company can stay listed, while a rejection or continued delays might lead to legal and financial challenges.
ANAHEIM, CA / ACCESSWIRE / May 29, 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 May 22, 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 March 31, 2024 (the "Form 10-Q"). The Listing Rule requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (the "SEC").
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.
Under Nasdaq rules, the Company has 60 calendar days, or until July 22, 2024, to submit a plan to regain compliance and if the plan is accepted, Nasdaq may grant an exception of up to 180 calendar days from the Form 10-Q's due date, or until November 18, 2024, to regain compliance. 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 the Form 10-Q and intends to file the Form 10-Q 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:
marketing@phoenixmotorcars.com
Dave Gentry, CEO
RedChip Companies, Inc.
1-407-644-4256
PEV@redchip.com
SOURCE: Phoenix Motorcars Inc.
View the original press release on accesswire.com
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