CBAK Energy faces Nasdaq delisting over share price

Published 29/12/2024, 18:14
CBAK Energy faces Nasdaq delisting over share price

CBAK Energy Technology, Inc. (CBAT), a $98 million market cap manufacturer of miscellaneous electrical machinery and supplies trading at $1.07, has received a notice from Nasdaq on Monday, indicating that the company is not in compliance with the minimum bid price requirement. According to InvestingPro data, the stock has shown significant volatility, gaining nearly 17% in the past week despite longer-term challenges. To maintain its listing, Nasdaq rules stipulate that the company's shares must sustain a minimum bid price of $1.00 over 30 consecutive business days.

The notification follows a period from November 12 to December 24, 2024, during which CBAK Energy's common stock, trading under the ticker "CBAT," did not meet this threshold. Despite this setback, the company's stock continues to be traded on the Nasdaq Capital Market without interruption. The company maintains profitable operations with a modest P/E ratio of 8.7, according to InvestingPro analysis, which identifies multiple positive financial indicators in its comprehensive Pro Research Report covering 1,400+ US stocks.

CBAK Energy has been granted a period until June 24, 2025, to address this deficiency and regain compliance. If the company's stock achieves a closing bid price of at least $1.00 for at least 10 consecutive business days at any time before this deadline, Nasdaq will confirm that CBAK Energy has met the requirement.

Should the company fail to reach the minimum bid price by the end of this initial 180-day compliance period, it may be granted a second 180-day grace period to achieve compliance. However, if CBAK Energy is unable to meet the minimum bid price requirement within this timeframe, it risks being delisted from Nasdaq. In case of such an event, the company would have the right to appeal the decision before a Nasdaq Hearings Panel.

This development was formally disclosed by CBAK Energy's Chief Financial Officer, Jiewei Li, through a report filed with the Securities and Exchange Commission on Friday.

InvestingPro subscribers can access detailed financial health metrics and 13 additional ProTips to better understand the company's position and potential investment opportunities.

In other recent news, CBAK Energy Technology, Inc. reported mixed third quarter results, with net revenue dipping to $33.5 million, despite an overall 18.4% increase for the first nine months of the year, totaling $114 million. This occurred amidst a temporary halt in production at the Dalian facility for upgrades, yet the company's battery business maintained a strong gross profit margin and received substantial orders, including a noteworthy one from Anker. In addition, the company's Nanjing factory turned profitable ahead of schedule and plans for expansion in 2025 are underway.

In recent developments, CBAK Energy confirmed the election of five directors to its board and ratified its independent registered public accounting firm, ARK Pro CPA & Co, for the upcoming fiscal year, according to a filing with the Securities and Exchange Commission. The company, which generated $207 million in revenue, also highlighted the growing demand for light electric vehicles in Southeast Asia and potential expansion into the U.S. market as key opportunities for future growth.

Analysts from InvestingPro suggest the company appears undervalued based on its Fair Value assessment, while the company's robust order book and positive gross margin trajectory position it well in the global battery technology market.

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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