Fly-E Group granted extension to meet Nasdaq listing requirements

QUEENS, NY - Fly-E Group, Inc. (NASDAQ:FLYE), a Delaware-based company specializing in motor vehicle and passenger car bodies manufacturing, has been granted an additional 180-day period to meet the Nasdaq Capital Market's minimum bid price requirement, according to a recent SEC filing. The company's stock currently trades at $0.36, down nearly 56% year-to-date, according to InvestingPro data.

The company received a notification on October 2, 2024, from Nasdaq that its common stock had closed below the required $1.00 minimum bid price for 31 consecutive business days. To maintain its listing, Fly-E Group was initially given until March 31, 2025, to comply with the rule. InvestingPro analysis reveals concerning fundamentals, with the company's Financial Health score rated as "Weak" and multiple indicators showing cash flow challenges.

As the deadline approached, Fly-E Group requested an extension from Nasdaq. On Monday, the company announced that it had received a letter from Nasdaq on April 2, 2025, confirming its eligibility for an additional compliance period ending on September 29, 2025.

To regain compliance, the company's common stock must maintain a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading days within this Additional Compliance Period. If Fly-E Group fails to meet the requirement by the new deadline, Nasdaq will issue a notice of delisting, which the company can appeal.

Fly-E Group is considering all available options to meet the minimum bid price requirement, including a potential reverse stock split. However, there is no guarantee that these measures will enable the company to satisfy Nasdaq's conditions.

This development comes as part of Fly-E Group's ongoing efforts to align with Nasdaq's continued listing standards and underscores the company's commitment to its investors and the marketplace. The information is based on the company's latest 8-K filing with the SEC.

In other recent news, UL Solutions has filed a lawsuit against Fly-E Group and its subsidiaries, alleging misuse of the UL Mark on their e-mobility products. The lawsuit, filed in a U.S. federal court, claims that Fly-E Group's e-bikes, e-scooters, and e-motorcycles falsely display the UL Mark, suggesting they are UL Certified without undergoing the necessary testing. UL Solutions accuses Fly-E Group of federal trademark infringement, counterfeiting, and deceptive business practices. The company seeks a permanent injunction to prevent further unauthorized use of its trademarks, as well as statutory and punitive damages. Additionally, UL Solutions alleges that Fly-E Group has engaged in unfair competition and deceptive trade practices under New York law. The lawsuit highlights UL Solutions' dedication to maintaining the integrity of its certifications and ensuring consumer trust. This legal action is part of the company's efforts to protect its trademark and uphold safety standards.

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