Safe & Green Holdings faces Nasdaq delisting risk

Published 16/12/2024, 22:08
Safe & Green Holdings faces Nasdaq delisting risk

Safe & Green Holdings Corp., a wholesale distributor of lumber and construction materials, disclosed on Monday that it has received a notice from Nasdaq due to the company's stock price failing to meet the minimum bid price requirement. The notification, dated December 12, 2024, indicated that for 30 consecutive business days, from October 30, 2024, to December 11, 2024, the company's common stock did not maintain the required minimum closing bid price of $1.00 per share.

Despite the warning, the company's stock will continue to be traded on The Nasdaq Capital Market under the ticker symbol SGBX. Safe & Green Holdings has been granted an initial period of 180 calendar days, until June 10, 2025, to regain compliance with the Nasdaq's minimum bid price rule. To achieve this, the company's common stock must close at or above $1.00 per share for at least ten consecutive business days during this period.

If the company fails to meet the requirement by June 10, 2025, it may be eligible for an extension provided it meets all other initial listing standards for The Nasdaq Capital Market, except for the minimum bid price. The company would need to formally express its intention to Nasdaq to remedy the deficiency during the second compliance period.

The filing also warns that if Nasdaq believes the company will not address the deficiency, if the stock price falls below $0.10 for ten consecutive trading days, or if the company is otherwise ineligible, it will face a delisting notice. Safe & Green Holdings can appeal this decision to a Hearings Panel.

Simultaneously, Safe & Green is facing potential delisting from the Nasdaq due to an equity shortfall. The company has appealed this decision to the Nasdaq's Hearing Panel, delaying any immediate delisting action.

On the leadership front, the board has decided not to renew CEO Paul Galvin's employment agreement, triggering a search for a new CEO. In financial maneuvers, Safe & Green issued a Promissory Note for $174,000 to 1800 Diagonal Lending LLC, secured a $4 million loan from Enhanced Capital Oklahoma Rural Fund, LLC, and entered into a preliminary purchase commitment with Trio, potentially generating sales of approximately $2.8 million.

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