ReTo Eco-Solutions faces Nasdaq delisting over share price

Published 04/02/2025, 22:38
Updated 04/02/2025, 22:40
ReTo Eco-Solutions faces Nasdaq delisting over share price

BEIJING - ReTo Eco-Solutions , Inc. (NASDAQ:RETO), a Chinese manufacturer specializing in eco-friendly construction materials, is confronting a delisting challenge from the Nasdaq Stock Market after failing to meet the minimum bid price requirement. The company’s stock, currently trading at $0.83, has fallen significantly from its 52-week high of $5.00, according to InvestingPro data. The company was notified on January 29, 2025, that its Class A shares had not maintained the necessary $1 minimum closing bid price over the preceding 30 business days, as stipulated by Nasdaq’s Listing Rule 5550(a)(2).

The situation is exacerbated by the fact that ReTo is ineligible for a compliance period due to a reverse stock split conducted in the past year, under Nasdaq’s Listing Rule 5810(c)(3)(A)(iv). Consequently, ReTo’s Class A shares are set for removal from the Nasdaq at the start of business on February 7, 2025. The company’s financial health score is rated as WEAK by InvestingPro, with negative EBITDA of $4.34M and declining revenues (-20.27% year-over-year).

In response, ReTo plans to request a hearing before a Nasdaq hearings panel, which will delay the suspension and delisting process until a decision is reached. The company’s shares will continue to be traded on Nasdaq under the ticker "RETO" during the appeal process. However, there is no guarantee that the panel will grant an extension or that ReTo will be able to regain compliance with all listing requirements.

Founded in 1999, ReTo Eco-Solutions has been engaged in the development, manufacture, and sale of equipment for producing environmentally sustainable construction materials, as well as providing related consulting, design, installation, engineering support, and technical services. With a current market capitalization of $16.66M, the company faces significant challenges. InvestingPro subscribers can access 12 additional investment tips and comprehensive financial metrics to better understand the company’s position and prospects.

This announcement contains forward-looking statements regarding the company’s intention to regain compliance with Nasdaq’s listing requirements. Investors are cautioned not to place undue reliance on these forward-looking statements, which are subject to various factors and uncertainties that could cause actual results to differ materially from those projected. The information in this article is based on a press release statement.

In other recent news, ReTo Eco-Solutions, Inc. has secured a contract valued at approximately $2 million. The agreement, facilitated through its subsidiary Beijing REIT Equipment Technology Co., Ltd., involves the sale of the RT18A, an advanced automatic concrete block machine, to a client based in the United Arab Emirates. The RT18A, a product of REIT Equipment, is designed to enhance both performance and user experience, offering a stable and reliable operation.

This development is part of ReTo’s ongoing cooperation with Middle Eastern clients. The company’s CEO, Mr. Hengfang Li, expressed confidence in the deepening relationships and reiterated the company’s commitment to creating value for their customers through superior products and services.

These are among the recent developments for ReTo Eco-Solutions, a company that has been actively engaged in providing ecological restoration and solid waste treatment solutions. The company also cautioned that the press release contains forward-looking statements, which are subject to various factors and uncertainties that could cause actual results to differ from those projected.

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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