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Tuesday, SemiLEDs Corporation, a semiconductor company, announced it has regained compliance with NASDAQ’s stockholders’ equity requirement, potentially averting a delisting scenario. On December 4, 2024, NASDAQ notified SemiLEDs that it failed to meet the minimum $2.5 million stockholders’ equity for continued listing. In response, SemiLEDs submitted a compliance plan which NASDAQ accepted, granting an extension until April 14, 2025. According to InvestingPro data, the company has shown remarkable momentum with a 54.66% price return over the past six months.
The company’s financial health has since improved, with the stockholders’ equity reaching $3.6 million as of February 28, 2025, as per the latest Quarterly Report on Form 10-Q. This development suggests that SemiLEDs has successfully addressed the deficiency cited by NASDAQ.
NASDAQ will keep monitoring SemiLEDs’ compliance with the stockholders’ equity requirement. The company must maintain this compliance in its next periodic report to avoid the risk of delisting.
SemiLEDs, headquartered in Miao-Li County, Taiwan, specializes in manufacturing LED chips and components for various applications, including general lighting, industrial, and consumer electronics. The company’s shares are traded on the NASDAQ Stock Market under the ticker symbol (NASDAQ:LEDS).
This update is based on information contained in a recent 8-K filing with the U.S. Securities and Exchange Commission.
In other recent news, SemiLEDs Corp has amended its loan agreements, extending the repayment period to January 15, 2026, and allowing for debt repayment through stock issuances. This strategic decision enables the company to manage its financial obligations without an immediate cash outlay. SemiLEDs plans to repay a combined $1.6 million by issuing shares of its common stock to its lenders, Simplot Taiwan Inc. and Chairman and CEO Trung Doan, based on a predetermined stock price. The amendments, filed with the SEC, maintain the original 8% annual interest rate and are secured by a second priority interest in the company’s headquarters building. The company has capped the stock repayment option at $400,000 for Simplot Taiwan Inc. and $800,000 for Trung Doan. These moves are seen as a way to conserve cash while potentially diluting existing shareholders. Investors and stakeholders may view this as a strategic effort to provide SemiLEDs with more flexibility in managing its capital structure. These developments are documented in a recent SEC filing and press release from the company.
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