Clean Energy Special Situations Corp. Receives Notice from Nasdaq Regarding Suspension of Trading of Securities and Files for Hearing

Rhea-AI Summary

Clean Energy Special Situations Corp. received a notice from Nasdaq regarding non-compliance with listing standards due to delayed filing of financial reports. The Company has requested an appeal to prevent suspension of trading.

Positive

• None.

Negative

• Non-compliance with Nasdaq's listing standards due to delayed financial report filing
• Potential suspension of trading if appeal is unsuccessful

Insights

Financial Analyst

The notice received by Clean Energy Special Situations Corp. from Nasdaq regarding non-compliance with listing standards due to the delayed filing of its Q3 10-Q report is a significant concern for investors. The delay in filing financial reports is often perceived negatively as it may indicate underlying financial or managerial issues. The immediate impact is the potential suspension of trading, which can lead to a decrease in liquidity and investor confidence. The uncertainty surrounding the company's ability to regain compliance and the outcome of the hearing could result in increased volatility of the stock price.

Furthermore, should the company fail to gain a stay of suspension or prevail at the hearing, the delisting from Nasdaq would force the stock to trade on less regulated markets, which generally leads to less visibility and investor interest. This can also affect the company's ability to raise capital and may increase borrowing costs due to perceived higher risks. Investors should monitor the situation closely, as the resolution of these compliance issues will have a direct impact on the stock's performance and the company's financial health.

Legal Expert

From a legal standpoint, the failure to file the Q3 10-Q within the extended timeframe granted by Nasdaq Staff is a breach of the exchange's listing standards. The procedural aspects following this notice, including the appeal to a Hearings Panel and the request for a stay of suspension, are critical steps for the company to maintain its listing status. The legal implications of a delisting include reduced regulatory oversight and investor protection, which can be detrimental to shareholder value.

It is also important to note that the SEC's involvement through the filing of a Form 25-NSE indicates a formal procedure for delisting, which underscores the seriousness of the situation. Should the company be delisted, it would face significant challenges in terms of regulatory compliance, reporting requirements and corporate governance, potentially leading to legal ramifications and further erosion of investor trust.

Market Research Analyst

The notice of non-compliance from Nasdaq is an indicator of potential operational or financial instability within Clean Energy Special Situations Corp. The clean energy sector is highly competitive and capital-intensive and companies in this space are expected to maintain transparent and timely financial reporting to attract investments. The delay in filing the Q3 10-Q report could signal to investors and market analysts that there may be issues worth scrutinizing within the company's operations or financials.

Market perception of the company's reliability and the sector's regulatory environment play a significant role in investor decision-making. This incident may lead to a reevaluation of the company's market position and the robustness of its management practices. Additionally, the outcome of the hearing and the company's ability to address the compliance issues will likely influence its future market strategy and investor relations.

New York, New York, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Clean Energy Special Situations Corp. (the “Company”) announced that, on February 14, 2024, it received a formal notice (the “Formal Notice”) from the Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company was not in compliance with Nasdaq’s continued listing standards (the “Rules”), because the Company did not timely file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 (the “Q3 10-Q”) and failed to meet the terms of the exception granted by the Staff of Nasdaq (the “Staff”) to file the Q3 10-Q by February 12, 2024 (the “Exception”). The Formal Notice further stated that, unless the Company requested an appeal of this determination, trading of the Company’s Common Stock, par value $0.0001 per share (the “Common Stock”) would be suspended at the opening of business on February 23, 2024 and a Form 25-NSE will be filed with the Securities and Exchange Commission (the “SEC”) which will remove the Company’s securities from listing and registration on Nasdaq.

The Company has requested today an appeal of the Staff’s determination to a Hearings Panel (the “Panel”) pursuant to the procedures set forth in the Rules. A request for a hearing regarding a delinquent filing will stay the suspension of the Company’s securities only for a period of 15 days from the date of the request. As a result, the Company will further request a stay of the suspension, pending the hearing. There can be no assurance that the Company will be able to successfully gain a stay of the suspension pending the results of the hearing, prevail at the hearing, or regain compliance with the Rules discussed above

About Clean Energy Special Situations Corp.

Clean Energy Special Situations Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target”, “may”, “intend”, “predict”, “should”, “would”, “predict”, “potential”, “seem”, “future”, “outlook” or other similar expressions (or negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. 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 the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Contact Information:

Raghunath Kilambi
Chief Executive Officer
c/o Graubard Miller
(212) 818-8800 

FAQ

Why did Clean Energy Special Situations Corp. receive a notice from Nasdaq?

The Company received a notice from Nasdaq due to non-compliance with listing standards for delayed filing of financial reports.

What action has the Company taken in response to the notice?

The Company has requested an appeal to prevent the suspension of trading of its Common Stock.

What is the consequence if the appeal is unsuccessful?

If the appeal is unsuccessful, trading of the Company's Common Stock may be suspended, and its securities may be removed from listing and registration on Nasdaq.

Is there a possibility for the Company to regain compliance with Nasdaq's listing standards?

There is a possibility for the Company to regain compliance, but it is uncertain at this point.

What is the timeframe for the Company to request a hearing regarding the delinquent filing?

The Company has a 15-day period from the date of the request to stay the suspension of its securities pending the hearing.

What is the potential outcome of the hearing requested by the Company?

The Company may gain a stay of the suspension, prevail at the hearing, or regain compliance with Nasdaq's listing standards.