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COOTAMUNDRA, Australia - Australian Oilseeds Holdings Limited (NASDAQ: COOT), a $21.23 million market cap company whose stock has declined 36% year-to-date, has received a notice from Nasdaq that it has failed to regain compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Global Market.
According to a press release statement, the company was notified on June 4 that it had not met the $10 million stockholders’ equity requirement despite being granted a 180-day extension following an initial notice of non-compliance received on December 6, 2024. InvestingPro data shows concerning financial health indicators, including a weak overall health score and a concerning current ratio of 0.55.
The company now faces potential delisting unless it appeals the decision by requesting a hearing before the Nasdaq Hearings Panel by June 11, 2025. If the company requests a hearing, trading of its securities will automatically remain active pending the Panel’s decision. With an Altman Z-Score of -1.25, InvestingPro analysis suggests elevated financial distress risk.
Australian Oilseeds has also applied to list its securities on the Nasdaq Capital Market, which has less stringent listing requirements than the Nasdaq Global Market.
The company, which manufactures and sells sustainable edible oils, describes itself as Australia’s largest cold pressing oil plant for GMO-free conventional and organic oilseeds. It operates through subsidiaries including Australian Oilseeds Investments Pty Ltd, generating annual revenue of $23.69 million. According to InvestingPro Fair Value analysis, the stock appears overvalued at current levels.
The compliance issue relates specifically to Nasdaq Listing Rule 5450(b)(1), which requires companies to maintain stockholders’ equity of at least $10 million. The company had previously submitted materials to Nasdaq on February 18, 2025, after which it was granted an extension until May 30, 2025, to demonstrate compliance.
No assurance has been provided that a further extension would be granted if the company appeals the delisting determination.
In other recent news, Australian Oilseeds Holdings Limited reported a revenue increase of over 16% for fiscal 2024, with an improvement in gross margin by 40 basis points. This growth is attributed to strong demand for its canola oils and expansion efforts in Australia and Asia. The company plans to further expand its Good Earth Oils brands into Taiwan and India within the next six months and anticipates significant growth in China due to favorable trade conditions. Additionally, Australian Oilseeds is eyeing entry into the U.S. market, pending tariff structure clarifications. Recent board changes include the election of Mr. Phaneesh Murthy as a director, replacing Mr. Menaka Athukorala, who retired. Mr. Murthy is expected to join the Audit Committee and chair the Nominating and Corporate Governance Committee. The company also ratified BDO Audit Pty Ltd. as its independent registered public accounting firm for 2024. These developments reflect Australian Oilseeds’ strategic efforts to capitalize on international market opportunities and strengthen its leadership team.
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