Tantech Receives NASDAQ Notification Regarding Minimum Bid Requirements

Rhea-AI Summary

Tantech Holdings Ltd (TANH) received a deficiency notification from Nasdaq due to its ordinary shares closing below $1.00 for 31 consecutive days. The company has 180 days to regain compliance or face potential delisting.

Positive

• None.

Negative

• Potential delisting from Nasdaq if minimum bid price requirement is not met by August 26, 2024.

Insights

Financial Analyst

The notification received by Tantech Holdings Ltd regarding non-compliance with Nasdaq's minimum bid price requirement is a critical issue that warrants a thorough analysis from a financial perspective. Typically, a stock price falling below the $1 threshold can be indicative of underlying financial challenges or investor skepticism about the company's future prospects. In this case, the extended period of 31 consecutive business days below this level triggers concerns regarding the company's market valuation and investor confidence.

From an investor's standpoint, the potential for delisting if compliance is not regained could lead to increased volatility and liquidity concerns. Furthermore, this scenario may compel the company to explore strategic measures such as a reverse stock split to elevate the share price above the minimum bid price threshold. The implications of such actions, while possibly beneficial in the short term, could have mixed effects on shareholder value in the long term due to potential dilution of shares and perception of financial engineering over tangible business performance improvements.

Market Research Analyst

It is essential to contextualize Tantech Holdings Ltd's situation within the broader market dynamics. Companies facing non-compliance issues with stock exchange requirements often reflect sectoral challenges or company-specific strategic missteps. A detailed market analysis could shed light on whether Tantech's predicament is an isolated incident or part of a larger trend affecting companies within its industry.

Additionally, the market's reaction to such news can vary. In some cases, investors might view the compliance period as a window for potential recovery, possibly leading to a speculative uptick in trading activity. However, sustained trading below the $1 mark could suggest deeper market apprehensions about the company's financial health or operational direction, potentially influencing peer companies' stock performance and sector confidence.

Legal Expert

Understanding the legal implications of Nasdaq's notification is crucial for stakeholders. The Nasdaq Listing Rule 5550(a)(2) sets forth compliance standards to maintain orderly market operations and protect investors. Tantech Holdings Ltd's ability to navigate this regulatory challenge will depend on its adherence to the stipulated compliance period and its strategic legal and financial responses.

During the 180-day compliance period, the company must not only focus on boosting its stock price but also ensure transparent communication with shareholders and the market. Failure to regain compliance could lead to delisting, which carries significant legal and reputational consequences. The company's legal team must be prepared to advise on and implement any necessary governance changes, financial restructuring, or other measures to address this compliance issue effectively and minimize potential legal risks.

LISHUI, China, Feb. 29, 2024 /PRNewswire/ -- Tantech Holdings Ltd (NASDAQ: TANH) ("Tantech" or the "Company") today announced that on February 27, 2024, it received a letter from The Nasdaq Stock Market LLC ("Nasdaq"), notifying the Company that it is currently not in compliance with the minimum bid price requirement set forth under Nasdaq Listing Rule 5550(a)(2). It resulted from the fact that the closing bid price of the Company's ordinary shares was below $1.00 per share for a period of 31 consecutive business days. This press release is issued pursuant to Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification. The notification has no immediate effect on the listing of the Company's common shares, which will continue to trade uninterrupted on Nasdaq under the ticker "TANH".

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of 180 calendar days, or until August 26, 2024 (the "Compliance Period"), to regain compliance with Nasdaq's minimum bid price requirement. If at any time during the Compliance Period, the closing bid price per share of the Company's ordinary shares is at least $1.00 for a minimum of 10 consecutive business days, Nasdaq will provide the Company a written confirmation of compliance and the matter will be closed.

In the event the Company does not regain compliance with the minimum bid price requirement by August 26, 2024, the Company may be eligible for an additional 180 calendar day grace period.

About Tantech Holdings Ltd

For the past decade, Tantech has been a highly specialized high-tech enterprise producing, researching and developing bamboo charcoal-based products with an established domestic and international sales and distribution network. Since 2017, when the Company acquired 70% of Shangchi Automobile, a vehicle manufacturer based in Zhangjiagang City, Jiangsu Province, it has manufactured and sold vehicles. The Company established two new subsidiaries, Lishui Smart New Energy Automobile Co., Ltd. and Zhejiang Shangchi New Energy Automobile Co., Ltd., in November 2020, to produce and sell street sweepers and other electric vehicles. The Company is fully ISO 90000 and ISO 14000 certified and has received a number of national, provincial and local honors, awards and certifications for its products and scientific research efforts. The Company's subsidiary, First International Commercial Factoring (Shenzhen) Co., LTD, is engaged in commercial factoring for businesses in and related to its supply chain. For more information, please visit: https://tanhtech.com. 

Forward-Looking Statements

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the sales, plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Tantech Holdings Ltd
Investor Relations
Tel: +86 (578) 226-2305
ir@tantech.cn 

View original content:https://www.prnewswire.com/news-releases/tantech-receives-nasdaq-notification-regarding-minimum-bid-requirements-302076198.html

SOURCE Tantech Holdings Ltd.

FAQ

Why did Tantech Holdings Ltd receive a deficiency notification from Nasdaq?

Tantech Holdings Ltd received a deficiency notification from Nasdaq because the closing bid price of its ordinary shares was below $1.00 per share for 31 consecutive business days.

What is the compliance period given to Tantech Holdings Ltd by Nasdaq?

Tantech Holdings Ltd has a compliance period of 180 calendar days, until August 26, 2024, to regain compliance with Nasdaq's minimum bid price requirement.

What happens if Tantech Holdings Ltd does not regain compliance by August 26, 2024?

If Tantech Holdings Ltd does not regain compliance with the minimum bid price requirement by August 26, 2024, the company may be eligible for an additional 180 calendar day grace period.