Street Calls of the Week
KISSIMMEE, Fla. - ECD Automotive Design, Inc. (NASDAQ:ECDA), currently trading at $3.93 with a market capitalization of $5.61 million, issued a correction Thursday to its September 22 press release regarding its continued listing on The Nasdaq Stock Market. The company clarified that $13.7 million of debt was converted to preferred equity, not the previously reported $15.5 million. According to InvestingPro data, the company operates with a significant debt burden, with a total debt-to-capital ratio of 81%.
The Nasdaq Hearings Panel has granted ECD’s request to maintain its listing subject to two conditions. By October 1, 2025, the company must demonstrate compliance with the minimum bid price requirement by maintaining a closing bid price of at least $1.00 for ten consecutive trading days. Additionally, by January 7, 2026, ECD must show stockholder equity of at least $2.5 million to meet the equity standard requirement. InvestingPro analysis indicates the stock has fallen significantly, with a 91.74% decline over the past year, though its Fair Value analysis suggests the stock may be undervalued at current levels.
To address the minimum bid price requirement, ECD implemented a 1-for-40 reverse stock split of its common stock on September 18. For the equity standard, the company secured a $500 million equity line of credit in June, and a lender recently converted $13.7 million in debt to preferred equity while purchasing an additional $1.1 million of preferred stock.
"We are pleased with the Panel’s decision, which allows ECD to maintain its Nasdaq listing while we work diligently to meet the conditions outlined," said Scott Wallace, CEO and Co-Founder of ECD, in the press release statement.
ECD Automotive Design specializes in restoring luxury vehicles including Land Rover Defenders, Range Rover Classics, Jaguar E-Types, Ford Mustangs, and Toyota FJs. The company operates from a 100,000-square-foot facility in Kissimmee, Florida, employing 102 staff members.
In other recent news, ECD Automotive Design reported its Q2 2025 earnings, revealing a record revenue of $7 million, which marks a $500,000 increase from the same quarter last year. Despite the revenue growth, the company experienced a net loss of $4.3 million, which widened from a $2 million loss in Q2 2024. Additionally, ECD Automotive Design has implemented a 1-for-40 reverse stock split effective September 18, 2025, to meet Nasdaq’s $1.00 minimum bid price requirement for continued listing. This reverse split will reduce the company’s outstanding shares significantly while maintaining the same number of authorized shares and par value.
The company has also received approval from the Nasdaq Hearings Panel to maintain its listing, contingent on meeting specific conditions, including achieving a closing bid price of $1.00 or more for ten consecutive trading days by October 1, 2025. Furthermore, ECD must reach a stockholder equity of at least $2.5 million by January 7, 2026, to comply with Nasdaq’s equity standard. In a recent filing, ECD disclosed receiving an additional Nasdaq delisting notice for not meeting the minimum market value of listed securities requirement of $35 million. The company had previously been given until August 25 to regain compliance with this standard.
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