Heramba Electric faces Nasdaq compliance issues

Published 25/03/2025, 21:14
Heramba Electric faces Nasdaq compliance issues

DÜSSELDORF, GERMANY AND ATLANTA, GA - Heramba Electric plc (NASDAQ:PITA), a multinational technology company, announced today that it has received a notification from the Nasdaq Stock Market LLC regarding non-compliance with the Market Value of Listed Securities (MVLS) requirement. The Nasdaq Listing Rule 5550(b)(2) stipulates that the MVLS must be at least $35 million, a benchmark Heramba Electric has failed to meet. According to InvestingPro data, the company’s current market capitalization stands at just $11.7 million, with shares trading at $0.24.

The company was previously notified on March 17, 2025, of its non-compliance with Nasdaq’s minimum bid price requirement, as its shares closed below $1.00 for 30 consecutive business days. Heramba Electric has until September 8, 2025, to address the bid price deficiency. InvestingPro analysis reveals the stock has lost 97.27% of its value over the past year, with an 81.08% decline year-to-date. InvestingPro subscribers have access to 8 additional key insights about PITA’s market performance.

The latest notice, dated March 19, 2025, adds to the company’s challenges as it now must also work to boost its MVLS to the required level by September 17, 2025. Nasdaq’s rules grant a 180-day compliance period during which the company’s MVLS must close at or above $35 million for at least ten consecutive business days to regain compliance.

This development follows a series of financial and legal difficulties for Heramba Electric. On January 9, 2025, the company received demand letters from Knorr-Bremse Systeme für Schienenfahrzeuge GmbH (KB GmbH) for payment of approximately EUR 24,855,000, which Heramba Electric contested. Subsequently, facing potential insolvency due to the outstanding demanded amounts, Heramba’s managing director filed for ordinary insolvency proceedings on January 30, 2025.

Heramba Electric, which includes subsidiaries such as Kiepe GmbH and Kiepe US, has been under scrutiny following these financial disputes and the subsequent insolvency filing. The company’s ordinary shares are at risk of being delisted from the Nasdaq if compliance with the market value and minimum bid price requirements is not achieved within the specified periods. InvestingPro data shows the company’s overall financial health score is rated as WEAK, with negative free cash flow and concerning profit margins.

The information regarding Heramba Electric’s current status and compliance issues with Nasdaq’s Listing Rules is based on a press release statement from the company.

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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