Northann Corp faces potential NYSE delisting over late filings

Published 22/04/2025, 22:36
Northann Corp faces potential NYSE delisting over late filings

Northann Corp, a Nevada-based manufacturer of plastic products with a market capitalization of $12.15 million and current stock price of $0.27, received a notification from NYSE Regulation on April 16, 2025, indicating that the company is currently not in compliance with NYSE American LLC’s continued listing standards. The non-compliance issue arises from Northann Corp’s failure to file its annual report (Form 10-K) for the fiscal year ending December 31, 2024, by the due date of April 15, 2025. According to InvestingPro analysis, the company’s stock has declined over 56% in the past year, reflecting ongoing operational challenges.

The delay, according to a previous late filing notification submitted on March 31, 2025, is due to the company needing additional time to ensure the accuracy and completeness of its financial statements. InvestingPro data reveals concerning financial metrics, including a weak Financial Health Score of 1.21 and a current ratio of 0.53, indicating potential liquidity challenges. Northann Corp has committed significant resources to finalize its consolidated financial statements and related disclosures and plans to file the overdue report as soon as possible within a six-month period provided as an initial cure period by NYSE American.

NYSE American will closely monitor Northann Corp’s progress and has the discretion to grant an additional six-month period if the company fails to file within the initial timeframe. However, if the company does not meet the requirements by the end of this period or if the exchange deems it necessary, suspension and delisting procedures may be initiated.

The company has expressed its intention to regain compliance with the exchange’s listing standards, though it acknowledges there is no guarantee of achieving this goal. The information is based on an SEC filing by Northann Corp.

In other recent news, Northann Corp has finalized an $8.13 million equity sale, which resulted in a shift of control within the company. The sale involved 40 million shares of common stock in a private placement transaction, decreasing the voting power of Lin Li, the company’s CEO, to 44.3%. Additionally, Northann Corp secured a $24 million loan through its subsidiary, 3D PRINTING DEV, LLC, to expand its 3D printing facility in South Carolina. This loan is intended to enhance the company’s manufacturing capabilities and was approved by Northann’s audit committee. Furthermore, the U.S. Securities and Exchange Commission has approved Northann’s S-1 registration statement, allowing the resale of up to 30,084,400 shares of common stock. This step is part of Northann’s strategy to boost shareholder value and market presence. CEO Lin Li noted that this registration is expected to increase the company’s trading volume. These developments reflect Northann’s ongoing commitment to growth and innovation in the 3D printing and plastics industry.

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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