ReTo Announces Receipt of Nasdaq Delisting Determination and Plan to Appeal

Rhea-AI Summary

ReTo Eco-Solutions (Nasdaq: RETO) announced receiving a delisting determination notice from Nasdaq on January 29, 2025. The notice states that RETO's Class A shares failed to maintain the minimum bid price requirement of $1 over the previous 30 consecutive business days, violating Listing Rule 5550(a)(2).

Due to a reverse stock split conducted within the past year, the company is not eligible for any compliance period. The shares are scheduled for delisting on February 7, 2025. However, RETO plans to appeal this determination to a hearings panel, which will temporarily stay the suspension and delisting process. During the appeal, RETO shares will continue trading on Nasdaq, though there's no guarantee the panel will grant an extension or that the company will regain compliance.

Positive

• Company can continue trading on Nasdaq during appeal process
• Temporary stay of delisting through appeal request

Negative

• Received Nasdaq delisting notice due to share price below $1
• Not eligible for compliance period due to previous reverse stock split
• Risk of permanent delisting from Nasdaq
• No guarantee of successful appeal or compliance restoration

BEIJING, Feb. 4, 2025 /PRNewswire/ -- ReTo Eco-Solutions, Inc. (Nasdaq: RETO) ("ReTo" or the "Company"), a manufacturer of equipment for production of eco-friendly materials in China, today announced that the Company received a delisting determination notice from The Nasdaq Stock Market LLC ("Nasdaq") on January 29, 2025, notifying the Company that given its Class A shares, par value US$0.10 per share (the "Class A Shares"), had a closing bid price at less than $1 over the previous 30 consecutive business days, the Company is not in compliance with the minimum bid price requirement as set forth in Listing Rule 5550(a)(2). Further, because the Company is not eligible for any compliance period since the Company has effected a reverse stock split over the prior one-year period, pursuant to Listing Rule 5810(c)(3)(A)(iv), the Class A Shares will be scheduled for delisting from Nasdaq at the opening of business on February 7, 2025, unless the Company requests an appeal of such determination to a hearings panel (the "Panel").

The Company intends to timely request a hearing before the Panel. The request will stay the suspension of the Company's securities and the delisting process pending the Panel's decision. While the appeal is pending, the Class A Shares will continue to trade on Nasdaq under the symbols "RETO." There can be no assurance that the Panel will grant the Company an extension period or that the Company will ultimately regain compliance with all applicable requirements for continued listing on Nasdaq.

About ReTo Eco-Solutions, Inc.

Founded in 1999, ReTo Eco-Solutions, Inc., through its operating subsidiaries in China, is engaged in the research and development, manufacture and sales of equipment used for production of eco-friendly construction materials. The Company provides consultation, design, implementation and installation of its equipment and   related parts, as well as engineering support and  technical advice and services. For more information, please visit: http://en.retoeco.com.

Forward-Looking Statements

This press release contains forward-looking statements. 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. These statements include, among others, statements regarding the Company's plans to regain compliance with the minimum stockholders' equity requirement. The Company's actual results may differ materially from those expressed in any forward-looking statements as a result of various factors and uncertainties. The reports filed by the Company with the Securities and Exchange Commission discuss these and other important factors and risks that may affect the Company's business, results of operations and financial conditions. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

ReTo Eco-Solutions, Inc.
Tel: +86-10-64827328
Email: ir@retoeco.com or 310@reit.cc 

View original content:https://www.prnewswire.com/news-releases/reto-announces-receipt-of-nasdaq-delisting-determination-and-plan-to-appeal-302367918.html

SOURCE ReTo Eco-Solutions, Inc.

FAQ

Why is RETO being delisted from Nasdaq?

RETO is facing delisting because its Class A shares traded below $1 for 30 consecutive business days, violating Nasdaq's minimum bid price requirement (Rule 5550(a)(2)).

When will RETO be delisted from Nasdaq?

RETO is scheduled for delisting on February 7, 2025, unless their appeal to the hearings panel is successful.

Will RETO continue trading during the appeal process?

Yes, RETO shares will continue trading on Nasdaq under the symbol 'RETO' while the appeal is pending.

Why isn't RETO eligible for a compliance period with Nasdaq?

RETO is not eligible for a compliance period because they have already effected a reverse stock split within the previous one-year period.

What happens if RETO's appeal to the Nasdaq hearings panel fails?

If the appeal fails, RETO's Class A shares will be delisted from Nasdaq and will no longer trade on the exchange.