New Era Helium faces Nasdaq delisting over MVPHS

Published 17/05/2025, 00:08
New Era Helium faces Nasdaq delisting over MVPHS

New Era Helium Inc. (NEHC), a Nevada-based company specializing in crude petroleum and natural gas, has received a notice from the Nasdaq Stock Market LLC indicating non-compliance with the minimum Market Value of Publicly Held Shares (MVPHS) required for continued listing. With a current market capitalization of just $9.49 million and a concerning 94% stock price decline over the past six months according to InvestingPro data, the company’s MVPHS fell short of the Nasdaq Listing Rule 5450(b)(2)(C), which mandates a minimum MVPHS of $15 million.

The notice, dated today, triggers a 180-day period ending on November 12, 2025, for New Era Helium to regain compliance. To achieve this, the company’s MVPHS must close at or above $15 million for at least ten consecutive business days. This challenge comes amid significant financial stress, with InvestingPro analysis revealing negative EBITDA of -$11.84 million and a concerning cash burn rate. Failure to meet this requirement within the given timeframe may lead to delisting from the Nasdaq, although the company would have the right to appeal any delisting decision.

In addition to the MVPHS issue, New Era Helium has also been notified of non-compliance with Nasdaq’s Minimum Bid Price Requirement. The company’s common stock, currently trading at $0.66, has closed below the $1.00 minimum bid price over the last 30 consecutive business days. This also sets a 180-day compliance period, ending on November 12, 2025. During this period, the company must maintain a closing bid price of at least $1.00 for a minimum of ten consecutive business days to regain compliance.

New Era Helium is actively seeking ways to address these compliance issues. However, there is no guarantee that the company will meet Nasdaq’s requirements within the allotted time. The current situation does not immediately affect the trading of New Era Helium’s common stock on the Nasdaq.

This announcement is in line with Nasdaq Listing Rule 5810(b), which mandates prompt disclosure of the receipt of a deficiency notification. The information is based on a press release statement.

In other recent news, New Era Helium Inc. has announced significant amendments to its Equity Purchase Facility Agreement with an institutional investor. The revised agreement, known as the Second Amended and Restated Equity Purchase Facility Agreement, allows New Era Helium to sell up to $75 million of its common stock and includes changes such as the removal of restrictions on selling shares below a certain price threshold. Additionally, the company has made amendments to its promissory notes, allowing for the deferral of principal payments due in May, June, and July 2025, subject to a deferral fee. In a separate development, New Era Helium has delayed the operational timeline for its Pecos Slope Plant to Q4 2025 due to financing challenges. The company is actively seeking project financing and is planning for helium offtake agreements to maintain revenue streams. Furthermore, New Era Helium has entered a joint venture with Sharon AI, Inc. to develop a 250MW net-zero energy data center in Ector County, Texas. This project, expected to go online in late 2026, will use Carbon Capture Utilization Storage technologies and aims to provide low-cost energy. These recent developments reflect New Era Helium’s strategic efforts to enhance its financial flexibility and expand its operations.

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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