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ECD Automotive Design, Inc. (NASDAQ:ECDA), currently trading at $0.14 with a market capitalization of $7.9 million, disclosed this week that it has received a notice from the Nasdaq Stock Market indicating an additional basis for the potential delisting of its securities. According to InvestingPro data, the company’s stock has declined over 85% year-to-date, reflecting significant operational challenges. The company reported the development in a filing with the Securities and Exchange Commission.
On Tuesday, ECD Automotive Design received a notification from Nasdaq stating that it had not regained compliance with the minimum market value of listed securities requirement of $35 million, as specified in Nasdaq Listing Rule 5550(b)(2). The company had previously been given 180 calendar days, until August 25, to meet this standard after falling below the threshold for 30 consecutive trading days. InvestingPro analysis reveals concerning financial metrics, including a weak financial health score and significant debt burden, with short-term obligations exceeding liquid assets.
The latest notice follows an earlier delisting notice related to the company’s failure to maintain a minimum bid price of $1.00 per share over 30 consecutive business days, as required by Nasdaq Listing Rule 5550(a)(2).
The company has scheduled a hearing before the Nasdaq Hearings Panel on September 9 to appeal the prior delisting notice and to contest the new market value deficiency notice. ECD Automotive Design stated that it plans to address both issues at the hearing.
If the company is not successful in its appeal, trading of its common stock and warrants on the Nasdaq Stock Market will be suspended, and a Form 25-NSE will be filed with the SEC to formally delist the securities. In that event, the company’s securities are expected to begin trading on the OTC Markets over-the-counter platform.
This information is based on a press release statement and details provided in the company’s recent SEC filing.
In other recent news, ECD Automotive Design reported its Q2 2025 earnings, revealing a record revenue of $7 million. This figure marks an increase of $500,000 compared to the same quarter last year. However, the company also reported a significant net loss of $4.3 million, which has widened from a $2 million loss in Q2 2024. Despite these financial results, the company has seen a positive response in premarket trading, attributed to investor optimism surrounding its strategic initiatives and product expansions. These developments have been closely monitored by analysts, reflecting a mix of growth and challenges for ECD Automotive Design.
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