SRIVARU Holding Received Nasdaq Panel Decision on Delisting Notice & Company Appealed
SRIVARU Holding announced on January 21, 2025, that Nasdaq has determined to delist the company's shares due to failure to maintain the minimum $1.00 bid price requirement. Despite implementing a reverse share split on January 15, 2025, the stock failed to maintain the required threshold.
The company formally appealed Nasdaq's decision on January 20, 2025. However, trading of SRIVARU's ordinary shares will be suspended starting January 22, 2025. The company attributes the share price decline to actions by warrant holders who have been selling shares to influence the volume-weighted average price during the reset period, which spans two days before and three days after the reverse stock split.
SRIVARU is currently engaging with warrant holders to reach a settlement regarding outstanding warrants to address the bid price issue.
SRIVARU Holding ha annunciato il 21 gennaio 2025 che il Nasdaq ha deciso di rimuovere le azioni della società a causa del mancato mantenimento del prezzo minimo di offerta di $1.00. Nonostante l'implementazione di uno split azionario inverso il 15 gennaio 2025, l'azione non è riuscita a mantenere la soglia richiesta.
La società ha formalmente presentato ricorso contro la decisione del Nasdaq il 20 gennaio 2025. Tuttavia, il trading delle azioni ordinarie di SRIVARU sarà sospeso a partire dal 22 gennaio 2025. L'azienda attribuisce il calo del prezzo delle azioni alle azioni dei detentori di warrant che hanno venduto azioni per influenzare il prezzo medio ponderato per volume durante il periodo di reset, che si estende per due giorni prima e tre giorni dopo lo split azionario inverso.
Attualmente, SRIVARU sta collaborando con i detentori di warrant per raggiungere un accordo riguardo ai warrant pendenti al fine di affrontare il problema del prezzo di offerta.
SRIVARU Holding anunció el 21 de enero de 2025 que el Nasdaq ha decidido eliminar las acciones de la compañía debido a la falta de mantenimiento del requerimiento de precio de oferta mínimo de $1.00. A pesar de haber implementado una división de acciones inversa el 15 de enero de 2025, las acciones no lograron mantener el umbral requerido.
La empresa apeló formalmente la decisión del Nasdaq el 20 de enero de 2025. Sin embargo, la negociación de las acciones ordinarias de SRIVARU se suspenderá a partir del 22 de enero de 2025. La compañía atribuye la caída del precio de las acciones a las acciones de los tenedores de warrants que han estado vendiendo acciones para influir en el precio promedio ponderado por volumen durante el periodo de ajuste, que se extiende dos días antes y tres días después de la división de acciones inversa.
Actualmente, SRIVARU está trabajando con los tenedores de warrants para llegar a un acuerdo respecto a los warrants pendientes para abordar el problema del precio de oferta.
SRIVARU Holding은 2025년 1월 21일 Nasdaq이 최소 $1.00의 입찰가 기준을 유지하지 못하여 회사의 주식을 상장 폐지하기로 결정했다고 발표했습니다. 2025년 1월 15일 역분할을 실시했음에도 불구하고 주식은 요구되는 기준을 유지하지 못했습니다.
회사는 2025년 1월 20일 Nasdaq의 결정에 정식으로 이의 신청을 했습니다. 그러나 SRIVARU의 보통주 거래는 2025년 1월 22일부터 중단됩니다. 회사는 주가 하락을 각권 보유자가 주가 조정 기간 동안 주식 거래를 통해 거래량 가중 평균가격에 영향을 미치기 위한 행동으로 설명하고 있습니다. 이 조정 기간은 역분할 전 이틀, 역분할 후 사흘로 설정되어 있습니다.
현재 SRIVARU는 보유권자와 협력하여 입찰가 문제를 해결하기 위한 미결제 보유권에 대한 합의를 도출하고 있습니다.
SRIVARU Holding a annoncé le 21 janvier 2025 que le Nasdaq a décidé de radier les actions de la société en raison du non-respect de l'exigence de prix de soumission minimum de 1,00 $. Malgré la mise en œuvre d'un regroupement d'actions le 15 janvier 2025, l'action n'a pas réussi à maintenir le seuil requis.
L’entreprise a formellement fait appel de la décision du Nasdaq le 20 janvier 2025. Cependant, la négociation des actions ordinaires de SRIVARU sera suspendue à partir du 22 janvier 2025. La société attribue la baisse du prix de l'action à des actions des détenteurs d'options qui ont vendu des actions pour influencer le prix moyen pondéré par volume durant la période de réinitialisation, qui s'étend sur deux jours avant et trois jours après le regroupement d'actions.
Actuellement, SRIVARU engage des discussions avec les détenteurs d'options afin de parvenir à un règlement concernant les options en suspens pour résoudre le problème du prix de soumission.
SRIVARU Holding gab am 21. Januar 2025 bekannt, dass die Nasdaq beschlossen hat, die Aktien des Unternehmens wegen Nichteinhaltung der Mindestanforderung für den Angebotskurs von 1,00 $ auszulisten. Trotz der Durchführung eines Aktiensplits am 15. Januar 2025 konnte die Aktie den erforderlichen Schwellenwert nicht halten.
Das Unternehmen hat die Entscheidung der Nasdaq am 20. Januar 2025 formell angefochten. Der Handel mit den Stammaktien von SRIVARU wird jedoch ab dem 22. Januar 2025 eingestellt. Das Unternehmen führt den Rückgang des Aktienkurses auf das Handeln von Optionsscheininhabern zurück, die Aktien verkauft haben, um den volumengewichteten Durchschnittspreis während der Reset-Periode zu beeinflussen, die sich über zwei Tage vor und drei Tage nach dem Aktiensplit erstreckt.
Aktuell engagiert sich SRIVARU in Gesprächen mit Optionsscheininhabern, um eine Einigung über ausstehende Optionen zu erzielen, um das Problem des Angebotskurses zu addressieren.
- None.
- Nasdaq determined to delist company shares for failing $1.00 minimum bid requirement
- Trading suspension effective January 22, 2025
- Reverse stock split failed to maintain required share price
- Warrant holders' selling actions creating downward pressure on stock price
Insights
The Nasdaq delisting notice for SRIVARU Holding represents a severe regulatory challenge with immediate market implications. The company's failure to maintain the
The company's allegation regarding warrant holders' strategic trading behavior during the VWAP reset period raises complex market manipulation concerns. While technically legal, such practices can artificially suppress stock prices and distort market efficiency. The ongoing warrant holder negotiations for settlement represent a critical pivot point - success could provide price stability, while failure could accelerate downward pressure.
Historical precedents suggest that Nasdaq appeals have approximately a
The confluence of a reverse stock split with the warrant reset period has created a technically-driven price suppression mechanism that's particularly challenging to overcome. The five-day VWAP calculation window (two days pre and three days post-split) provides warrant holders with a structured opportunity to influence price discovery, effectively creating a self-reinforcing downward spiral.
The warrant holders' strategy appears methodically designed to capitalize on the reset provisions - by selling shares to depress the VWAP, they potentially gain more favorable warrant terms, creating a problematic feedback loop. This technical pressure overshadows fundamental valuation metrics and creates artificial selling pressure that's difficult to counteract through normal market mechanisms.
The company's proposed warrant settlement strategy is important but faces timing challenges given the imminent trading suspension. Similar cases suggest that without swift resolution of the warrant overhang, price recovery becomes increasingly difficult as market participants anticipate continued technical pressure. The micro-cap market structure particularly amplifies these effects due to lower liquidity and wider spreads.
GRAND CAYMAN, Cayman Islands, Jan. 21, 2025 (GLOBE NEWSWIRE) -- SRIVARU Holding Limited, an exempted company incorporated with limited liability under the laws of the Cayman Islands (the “Company”), issued a press release on January 21, 2025, announcing that it had received a determination from Nasdaq on January 17, 2025, to delist the Company’s shares for failure to regain compliance with the minimum
While the Company acknowledge the current price of our shares has dipped below this threshold, the Company believe that there are significant extenuating circumstances that warrant reconsideration of our listing status. The ongoing decline in our share price can be attributed to the unusual and is proportionate impact of actions taken by some holders of outstanding warrants. Specifically, these warrant holders have engaged in selling shares to influence the volume - the Company weighted average price (VWAP) during the reset period, which includes two days prior to and three days after the recent reverse stock split. This practice, while within legal boundaries, has distorted our stock's market value and fails to reflect the true underlying business performance and fundamentals of SRIVARU Holding Limited. These actions have contributed significantly to the downward pressure on our stock price, impeding our ability to meet the minimum bid price requirement. The Company is in the midst of engaging with the warrant holders for a full and final settlement of outstanding warrants to resolve the bid price issue.
About SRIVARU
SRIVARU Holding Limited, a Cayman Islands exempted company, is the parent company of SRIVARU Motor Private Ltd., a commercial-stage provider dedicated to designing and manufacturing premium electric motorcycles in India. SRIVARU was founded on the realization that while the rider-motorcycle relationship is deep and complex, it is in desperate need of innovation for the next generation of riders. SRIVARU provides affordable premium E2W vehicles that provide an exceptional riding experience with redundant 3-channel automated braking, a low center of gravity to improve stability, enhanced safety features, and easy charging compatible with home charging outlets. The Company has a broad array of intellectual property, including a patent-pending chassis and drive acceleration system. In addition, SRIVARU offers customers a superior total cost of ownership compared to traditional internal combustion engine motorcycles and E2W vehicle competitors. SRIVARU additionally oversees a manufacturing subsidiary set to play a crucial role in achieving the company’s vision for sustainable and innovative mobility. Additional information about the company is available at: http://www.srivarumotors.com/. With a focus on innovation, sustainability, and performance, SRIVARU aims to redefine the future of mobility.
Forward Looking Statements
This communication may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning SRIVARU’s possible or assumed future results of operations, business strategies, debt levels, competitive position, industry environment, potential growth opportunities and the effects of regulation, respectively. These forward-looking statements are based on SRIVARU’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. When used in this communication, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside SRIVARU’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) the outcome of any legal proceedings that may be instituted against SRIVARU or others; (b) the inability to obtain financing to complete the Company’s planned expansion; (c) the inability to successfully appeal the Nasdaq’s delisting determinations; (d) the risk that current plans and operations of SRIVARU or its subsidiaries may be disrupted; (e) the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition; (f) the ability of SRIVARU to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (g) costs related to ongoing operations; (h) the possibility that SRIVARU may be adversely affected by other economic, business, and/or competitive factors; (i) SRIVARU’s ability to execute its business plans and strategies, (j) SRIVARU’s estimates of expenses and profitability; and (k) other risks and uncertainties indicated from time to time in SRIVARU’s public filings with the SEC, including those under “Risk Factors” therein.
Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SRIVARU assumes no obligation and, except as required by law, do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
FAQ
Why is SRIVARU (SVMH) being delisted from Nasdaq?
When will SVMH stock be suspended from trading on Nasdaq?
What action has SRIVARU taken against the Nasdaq delisting notice?
What caused SVMH's share price to fall below the $1.00 requirement?
What solution is SRIVARU pursuing to address the bid price issue?
