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Phoenix Motor Inc. (NASDAQ:PEV), a manufacturer of truck and bus bodies with a market capitalization of $15.6 million, has been notified by The Nasdaq Stock Market LLC of its pending delisting due to non-compliance with certain listing rules. The company, headquartered in Anaheim, California, received the notice on Monday, April 8, 2025, indicating a breach of the minimum bid price requirement - with shares currently trading at $0.34 - and the failure to hold an annual shareholders' meeting within the stipulated timeframe.
Specifically, Phoenix Motor’s common stock did not meet the Nasdaq's Listing Rule 5550(a)(2), which mandates a minimum bid price of at least $1 per share. As a result, the company's securities are set to be suspended from trading starting Friday, April 15, 2025, and will consequently be removed from the Nasdaq Capital Market.
The company has the option to appeal the decision before the Nasdaq Hearing Panel by the same date, April 15. However, due to the company already having been granted a second 180-day compliance period and still failing to meet the minimum bid price, the appeal will not delay the trading suspension.
Phoenix Motor is actively seeking ways to comply with Nasdaq’s requirements, including proposing a reverse stock split with a ratio between 1-for-1.5 and 1-for-5, to be decided by its Board of Directors. The primary aim of this action is to maintain its listing on Nasdaq. Moreover, the company has scheduled an annual meeting of shareholders for April 18, 2025, to address the violation of Listing Rule 5620(a), which relates to the timely holding of annual meetings.
The company plans to submit a compliance plan during the hearing process, but there is no guarantee that the Panel will allow Phoenix Motor to continue its listing or that the company will manage to meet the listing criteria within any extension period that may be provided by the Panel.
The information presented in this article is based on a press release statement from the Securities and Exchange Commission.
In other recent news, Phoenix Motor Inc. announced a strategic partnership with ADASTEC Corp. to develop 40-foot battery-electric buses featuring advanced autonomous capabilities. This collaboration aims to address the growing demand for sustainable and efficient transportation solutions in North America. Additionally, Phoenix Motor has delayed its Annual Meeting of Stockholders, with further details on the new date yet to be disclosed. The company also partnered with Beijing Guorun Venture Capital Co., Ltd. to create a USD 140 million M&A investment fund aimed at acquiring and developing EV manufacturing sites in China. In another development, Phoenix Motor launched a pilot program for autonomous robots designed for package pickup and last-mile delivery, enhancing its smart logistics offerings. The company secured a $6 million loan from J.J. Astor & Co. to expand its production capabilities, aiming to meet the rising demand for electric transit buses. These recent developments underscore Phoenix Motor's ongoing efforts to expand its footprint in the electric vehicle market and enhance its technology offerings.
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