ConnectM faces Nasdaq delisting over share price rule

Published 02/04/2025, 22:30
ConnectM faces Nasdaq delisting over share price rule

ConnectM Technology Solutions, Inc. (NASDAQ:CNTM), a company specializing in construction special trade contracting, faces potential delisting from the Nasdaq Global Market. The company, which InvestingPro data shows is operating with a significant debt burden and rapidly burning through cash, received a notice from Nasdaq on March 27, 2025, indicating that the company’s stock had closed below the minimum bid price of $1.00 per share for 30 consecutive business days, violating Nasdaq’s continued listing requirements.

The company, headquartered in Marlborough, Massachusetts, now has 180 days, until September 23, 2025, to regain compliance. Currently trading at $0.75 with a market capitalization of just $10.5 million, the stock needs to meet or exceed $1.00 for at least ten consecutive business days. According to InvestingPro’s Fair Value analysis, the stock appears to be trading below its intrinsic value despite its challenges.

If ConnectM fails to meet the Minimum Bid Price Requirement by the compliance deadline, it may be granted an additional period to comply, provided it meets certain conditions. These include applying to transfer to the Nasdaq Capital Market tier and satisfying all other initial listing requirements, except for the Minimum Bid Price Requirement. The company would also need to inform Nasdaq of its plans to rectify the deficiency.

In the event that compliance is not regained within the allotted timeframe and an additional period is not granted, Nasdaq will issue a delisting notification. ConnectM would then have the opportunity to appeal the decision to a Nasdaq Hearing Panel.

ConnectM, formerly known as Monterey Capital Acquisition Corp, is considering various options to address the situation and is focused on ensuring that its stock price reflects the required threshold. While analysts expect sales growth this year, InvestingPro analysis reveals concerning metrics about the company’s financial health, with 14 additional key insights available to subscribers. The company’s CEO, Bhaskar Panigrahi, has signed off on the report, which is based on a press release statement. There is no certainty that ConnectM will be able to regain compliance with the Nasdaq’s Minimum Bid Price Requirement or maintain compliance with other Nasdaq listing standards.

In other recent news, ConnectM Technology Solutions has reported its financial results for the fiscal year ending December 31, 2024. The company shared these outcomes in a letter to shareholders, indicating a significant update, though specific financial details were not disclosed in the press release. ConnectM has also received a non-binding acquisition proposal from its major investors, including SriSid LLC, Arumilli LLC, and Win-Light Global Co. Ltd., valuing the company at approximately $46.5 million. This proposal could transition ConnectM from a public to a private entity, pending due diligence and regulatory approvals.

Additionally, ConnectM has secured its first Home and Building Electrification project in India, valued at about $725,000, marking its entry into India’s distributed renewable energy market. The project involves installing rooftop solar systems and is expected to contribute to the company’s revenue in Q2 2025. In terms of investor activity, SRISID LLC and ARUMILLI LLC have recently acquired significant stakes in ConnectM, with SRISID LLC now owning 13.4% and ARUMILLI LLC holding 7.4% of the company’s outstanding shares. These investments reflect confidence in ConnectM’s strategic direction and growth potential.

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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