Smart Powerr Corp. granted extension to meet Nasdaq listing

Published 31/03/2025, 14:06
Smart Powerr Corp. granted extension to meet Nasdaq listing

Smart Powerr Corp. (NASDAQ:CREG), previously known as China Recycling Energy Corp., has been granted an additional 180 days to meet Nasdaq’s minimum bid price requirement, as per the company’s recent 8-K filing with the Securities and Exchange Commission. The micro-cap company, currently valued at $17.39 million, has seen its stock price decline by approximately 43% over the past year, according to InvestingPro data. The extension, approved by the Nasdaq Stock Market LLC, allows the company until September 22, 2025, to elevate its common stock’s bid price to at least $1.00 per share.

The Nevada-incorporated business services company had initially received a notice on September 24, 2024, indicating that its stock had closed below the required $1.00 per share for 37 consecutive business days. The initial 180-day compliance period was set to expire on March 24, 2025. However, as of March 25, 2025, Nasdaq has agreed to extend the compliance period, offering Smart Powerr Corp. additional time to address the deficiency. The stock currently trades at $0.71, significantly below its 52-week high of $1.58.

During this extension, Smart Powerr Corp.’s stock will continue to be listed and trade on the Nasdaq Capital Market under the ticker symbol "CREG." The company must achieve a closing bid price of $1.00 or higher for at least ten consecutive trading days within this period to regain compliance. If Smart Powerr Corp. fails to meet the criteria by the deadline, Nasdaq will issue a notice of delisting.

The company’s management is exploring options to address the bid price deficiency, including a potential reverse stock split. While the company maintains a strong current ratio of 9.25 and trades at a low Price/Book multiple of 0.17, there is no certainty that these efforts will be successful in regaining compliance with the Nasdaq’s minimum bid price requirement. InvestingPro subscribers can access additional insights, including 6 more key tips about CREG’s financial health and valuation metrics.

This development is based on the latest SEC filing and reflects the company’s ongoing efforts to maintain its listing status on a major stock exchange. The company’s next earnings report is scheduled for April 11, 2025, which could provide additional clarity on its financial position and compliance efforts.

In other recent news, Smart Powerr Corp has been active with several strategic and financial developments. The company recently completed a registered direct offering, selling 4,060,000 shares of common stock at $0.61 per share, which provides a significant capital infusion to support its operations and growth initiatives. Additionally, Smart Powerr Corp finalized a securities purchase agreement, issuing 900,000 shares of common stock at $0.62 per share and pre-funded warrants for an additional 2,340,000 shares. This move is part of the company’s efforts to strengthen its capital structure and enhance its business opportunities.

Furthermore, Smart Power Corp announced a strategic cooperation agreement with Shidai Huazhi (Jiangsu) Energy Technology Co., Ltd. This partnership aims to develop integrated solutions for photovoltaic, energy storage, charging, and inspection, contributing to China’s "dual carbon" objectives. The collaboration includes plans for ultra-fast charging stations and intelligent microgrid systems, which could significantly impact the market by 2030. Notably, the companies are also exploring further cooperation at the capital level, potentially establishing a joint venture subsidiary. These recent developments highlight Smart Powerr Corp’s focus on innovation and financial growth.

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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