Crown Electrokinetics faces Nasdaq delisting, seeks appeal

Published 04/03/2025, 22:10
Crown Electrokinetics faces Nasdaq delisting, seeks appeal

LOS ANGELES - Crown Electrokinetics Corp. (NASDAQ:CRKN), a technology infrastructure company with a current market capitalization of $4.34 million, is set to be delisted from The Nasdaq Stock Market, triggering a suspension of trading in its common stock starting Wednesday. The company has announced plans to appeal the delisting determination and will request a reconsideration from the Nasdaq Hearings Panel.

While Crown navigates the appeal process, its stock is expected to trade on the OTC Market’s Pink Current Information tier. Despite the delisting notice, Crown asserts it has met Nasdaq’s listing requirements, including a sustained minimum bid price and stockholders’ equity. CEO Doug Croxall emphasized Crown’s financial health, with over $20 million in cash and no debt, which InvestingPro data confirms through its "holds more cash than debt" indicator. The company generated revenue of $13.46 million in the last twelve months through its construction business.

Crown specializes in infrastructure solutions such as fiber optics and water service lines and has recently completed a reverse stock split, maintaining compliance with Nasdaq’s bid price rule for 22 consecutive business days. The stock, which according to InvestingPro analysis appears undervalued, has seen significant volatility with a year-to-date decline of nearly 84%. The company’s stock closed at approximately $3.40 per share on Monday.

While the stock remains technically listed on Nasdaq pending a final decision, Crown will focus on its growth strategy and operational scaling. According to InvestingPro, which offers 15+ additional insights and a comprehensive Pro Research Report for this stock, analysts expect both sales and net income growth this year. The company reassures shareholders of its commitment to long-term growth and value delivery.

This development follows Crown’s efforts to innovate in the infrastructure sector, including proprietary solutions for water scarcity. The company’s filings with the Securities and Exchange Commission will provide further details as the situation progresses.

The information is based on a press release statement from Crown Electrokinetics Corp.

In other recent news, Crown Electrokinetics Corp. has announced a reverse stock split of its common stock at a ratio of 1-for-150. This strategic move, effective January 30, 2025, aims to consolidate shares to maintain the company’s Nasdaq listing. The decision was approved by the Board of Directors and follows a favorable vote from stockholders. Crown’s CEO, Doug Croxall, emphasized the company’s healthy cash balance exceeding $25 million and its growing revenues. Additionally, the company has welcomed Andy Mayer and his team to enhance its offerings, particularly in disaster rehabilitation and pipeline industry expertise.

In another development, Crown Electrokinetics faces potential delisting from Nasdaq due to non-compliance with the exchange’s minimum bid price requirement. The company’s stock had closed below the $1.00 minimum bid price for 30 consecutive business days, as noted in a December 19, 2024 notification. Crown Electrokinetics plans to request a hearing before the Nasdaq Hearings Panel to delay any delisting actions. The company is actively seeking to address the issue, but there is no certainty of meeting the necessary criteria within any extension period that may be provided.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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