Davis Commodities faces Nasdaq delisting over share price

Published 21/03/2025, 17:06
Davis Commodities faces Nasdaq delisting over share price

SINGAPORE - Davis Commodities Limited, a Singapore-based investment holding company with a market capitalization of $23 million and current share price of $0.94, has been notified by the Nasdaq Stock Market of non-compliance with its minimum bid price requirement. The company’s share price has been below the $1 threshold from February 3, 2025, to March 18, 2025, which breaches Nasdaq Listing Rule 5550(a)(2).

Despite the warning, the company’s ordinary shares will remain listed on Nasdaq for now. According to InvestingPro data, Davis Commodities maintains a healthy current ratio of 1.31, indicating its liquid assets exceed short-term obligations. Nasdaq has granted a 180-day period, ending on September 15, 2025, for Davis Commodities to regain compliance. If the company fails to meet the requirement within this timeframe, it may receive an additional 180 days if it meets all other initial listing standards for The Nasdaq Capital Market, except for the bid price.

To avoid delisting, Davis Commodities might consider measures such as a reverse stock split. The company has expressed its intent to comply with the listing requirements within the given period. InvestingPro analysis suggests the stock is currently undervalued, though it trades at a relatively high P/E ratio of 51.4. The company has cautioned that there is no guarantee of regaining compliance or meeting other Nasdaq listing requirements in the future.

This announcement is based on a press release statement from Davis Commodities Limited. The company, known for trading and distributing agricultural commodities like sugar, rice, and edible oils, maintains a significant market presence in Asia, Africa, and the Middle East. With eight additional key insights available on InvestingPro, including profitability metrics and debt levels, Davis Commodities is dedicated to value creation through diversification, innovation, and sustainable business practices.

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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