SPI Energy Announces Receipt of Nasdaq Non-Compliance Notice
On May 21, 2024, SPI Energy announced it received a non-compliance notice from Nasdaq due to its failure to file its Q1 2024 10-Q report on time. Previously on April 19, 2024, Nasdaq had notified SPI about a similar issue regarding its FY 2023 10-K report. SPI has until June 18, 2024, to submit a compliance plan, which, if accepted, extends their deadline to October 14, 2024. Failure to comply could result in delisting. The company assures investors it's working diligently to meet these requirements.
- SPI Energy received an extended deadline until October 14, 2024, to regain compliance if their plan is accepted.
- The company is actively working to complete the required filings.
- Failure to file the Q1 2024 10-Q on time has led to a non-compliance notice from Nasdaq.
- Previous non-compliance due to late filing of FY 2023 10-K.
- Potential delisting from Nasdaq if compliance is not met by the extended deadline.
- Delays in filings may cause investor uncertainty and affect stock performance.
Insights
The notice of non-compliance from Nasdaq regarding SPI Energy's delayed filing of its quarterly and annual reports is noteworthy for several reasons. Firstly, timely filings are essential for transparency and maintaining investor confidence. Missing deadlines can raise red flags about the company's internal controls and financial health.
The company has until June 18, 2024, to submit a compliance plan, which if accepted, could give them an extension until October 14, 2024. The implication of failing to meet these deadlines could result in delisting from Nasdaq, a significant downside for investors as it would reduce liquidity and potentially lead to a sharp decline in share price.
This delay could be indicative of deeper issues, possibly related to financial struggles or restructuring efforts. Historically, companies that face delisting threats see increased volatility and a potential loss of investor trust. Investors should watch for the company's compliance plan and any additional disclosures that provide insight into the reasons behind the delays.
For long-term investors, understanding the company's financial situation and governance is important at this juncture. Short-term, the stock might experience heightened volatility, which presents both risks and opportunities depending on the company's ability to resolve these issues promptly.
Overall, while the renewable energy market is promising, the administrative lapses present a cautious flag.
From a corporate governance perspective, SPI Energy's failure to timely file its Form 10-K and Form 10-Q raises concerns. Such delays can be symptomatic of underlying operational inefficiencies or potentially more serious governance issues. Compliance with regulatory requirements like timely filings is a fundamental aspect of good corporate governance, which emphasizes accountability and transparency.
The receipt of two separate notices from Nasdaq within a short period indicates a pattern that might suggest deeper structural or administrative weaknesses. This not only impacts investor confidence but also raises questions about the effectiveness of the board in overseeing the company's compliance with essential regulatory requirements.
For retail investors, it's important to scrutinize the company's subsequent actions and any corrective measures it announces. Look out for any changes in the management team, particularly in roles related to finance and compliance, which could be a positive step towards rectifying the situation.
In the broader context, investors should consider how these governance issues might affect the company's strategic initiatives and its ability to exploit opportunities in the renewable energy sector.
MCCLELLAN PARK, CA / ACCESSWIRE / May 21, 2024 / SPI Energy Co., Ltd., (NASDAQ:SPI) (the "Company"), a global renewable energy company and provider of solar storage solutions for business, residential, government, logistics and utility customers, today announced that it received a notice (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that due to the Company's failure to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024 (the "Form 10-Q"), with the Securities and Exchange Commission (the "SEC"), the Company is not in compliance with Nasdaq's continued listing requirements under Nasdaq Listing Rule 5250(c)(1) (the "Rule"), which requires the timely filing of all required periodic reports with the SEC.
As previously disclosed on a Current Report on Form 8-K of the Company filed on April 22, 2024, the Company received a notice (the "Initial Notice") from Nasdaq on April 19, 2024 notifying the Company that due to the Company's failure (the "Initial Delinquent Filing") to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the "Form 10-K"), with the SEC, the Company is not in compliance with the Rule.
The Notice states that the Company has until June 18, 2024 to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rules. If Nasdaq accepts the Company's plan, then Nasdaq may grant the Company up to October 14, 2024, or 180 days from the due date of the Initial Delinquent Filing, for filing the Form 10-K and the Form 10-Q to regain compliance. If the Company fails to timely regain compliance with Nasdaq Listing Rule 5250(c)(1), the Company's ordinary shares will be subject to delisting from Nasdaq.
The Company continues to work diligently to complete the Form 10-K and the Form 10-Q.
This announcement is made in compliance with the Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a notification of deficiency.
About SPI Energy Co., Ltd.
SPI Energy Co., Ltd. (NASDAQ:SPI) is a global renewable energy company and provider of solar, storage solutions that was founded in 2006 in Roseville, California and is headquartered in McClellan Park, California.
The Company comprises the following core divisions: (a) SPI Solar commercial & utility solar business develops and provides a full spectrum of EPC services to third party project developers. (b) Orange Power business owns and operates solar projects that sell electricity to the grid in multiple regions, including the U.S., U.K., and Europe. (c) SolarJuice is a leader in renewable energy system solutions for residential and small commercial markets with solar wholesale distribution business in Australia, and residential solar and roofing installation business in California. SolarJuice also manufactures solar cells & modules in United States under the Solar4America brand. (d) SEM Wafertech develops American solar wafer manufacturing at Sumter, SC.
SPI maintains global operations in North America, Australia, Asia and Europe and is also targeting strategic investment opportunities in fast growing green energy industries such as battery storage, charging stations, and others which leverage the Company's expertise and substantial solar cash flow.
For more information on SPI Energy and its subsidiaries, the Company recommends that stockholders, investors and any other interested parties read the Company's public filings and press releases available under the Investor Relations section at or available at www.sec.gov.
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 the Company will regain compliance with the Rule during any compliance period or in the future, or otherwise meet Nasdaq compliance standards, that the Company will be eligible for a second compliance period, 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. 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:
SPI Energy Co., Ltd.
IR Department
Email: ir@spigroups.com
Dave Gentry
RedChip Companies, Inc.
Phone:(407) 491-4498
SPI@redchip.com
SOURCE: SPI Energy Co., Ltd.
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FAQ
Why did SPI Energy receive a non-compliance notice from Nasdaq?
What is the deadline for SPI Energy to regain compliance with Nasdaq?
What could happen to SPI Energy if they don't regain compliance?
What previous compliance issue did SPI Energy face?
What steps is SPI Energy taking to address the non-compliance notice?
