Graphjet Technology faces Nasdaq delisting over delayed filings

KUALA LUMPUR - Graphjet Technology (NASDAQ:GTI), a developer of technologies to produce graphite and graphene from agricultural waste, announced Tuesday it received a delisting determination from Nasdaq due to delayed financial filings. The company’s shares, currently trading at $0.09, have fallen over 98% in the past year, with market capitalization shrinking to approximately $13 million. According to InvestingPro data, the company’s financial health score is rated as "WEAK."

According to the company’s statement, Nasdaq notified Graphjet on June 4 that it failed to comply with continued listing requirements after delays in filing both its annual report for the period ended September 30, 2024, and its quarterly report for the period ended December 31, 2024. The company’s financial struggles are reflected in its concerning current ratio of 0.17 and negative EBITDA of -$14.6 million for the last twelve months.

Trading of Graphjet’s Class A Ordinary Shares will be suspended at market open on June 13, 2025, unless the company successfully appeals the decision. Graphjet intends to request a hearing before the Nasdaq Hearings Panel, which would temporarily stay the suspension for 15 days from the request date. The company also plans to request a suspension stay pending the hearing.

The determination follows Graphjet’s non-compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic financial reports with the Securities and Exchange Commission.

Graphjet Technology, founded in 2019 in Malaysia, develops patented technology to produce graphene and graphite from palm kernel shells, a byproduct of palm seed oil production. The company went public on Nasdaq under the ticker GTI.

This announcement was made in compliance with Nasdaq rules requiring prompt disclosure of deficiency notifications. Despite the company’s challenges, InvestingPro analysis suggests the stock may be undervalued at current levels. Subscribers to InvestingPro can access additional insights, including detailed financial health metrics and growth projections. Get the full picture with over 30 exclusive financial metrics and professional analysis available on InvestingPro.

In other recent news, Graphjet Technology has undergone several significant changes in its leadership team. The company announced the resignation of Ng Ah Lek as an Independent Director and member of various committees, including the Audit Committee, with no disagreements cited regarding company practices. Similarly, Ng Keok Chai stepped down from his roles as Independent Director and Head of the Audit Committee, with the company confirming that his departure was not due to any disputes. In a move to strengthen its leadership, Graphjet Technology expanded its board by appointing Ang Chee Yong, Chen Siow Woon, Pwa Yee Guo, and Tan Song Jie as new directors. Tan Song Jie will also serve as the chairperson of the Audit Committee.

Additionally, Chris Lai Ther Wei has been appointed as the new Deputy Chief Executive Officer and Chief Financial Officer, bringing extensive experience in corporate finance advisory services. These appointments are part of Graphjet Technology’s efforts to enhance its corporate governance and leadership capabilities. The company has not yet announced successors for the departing directors or detailed the impact on its governance structure. These developments are based on recent filings with the U.S. Securities and Exchange Commission.

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