Stardust Power faces Nasdaq delisting over share value, price

Published 24/03/2025, 22:10
Stardust Power faces Nasdaq delisting over share value, price

Stardust Power Inc. (NASDAQ:SDST), a Delaware-based company specializing in nonferrous metals smelting and refining with a market capitalization of $36.7 million, received notifications from the Nasdaq Stock Market indicating non-compliance with listing requirements. The company’s stock, currently trading at $0.67, has experienced a dramatic 94% decline over the past year according to InvestingPro data. The communications, dated March 18 and March 19, 2025, highlighted that for 30 consecutive business days, the company’s market value of publicly held shares (MVPHS) and bid price per share were below the minimum thresholds set by Nasdaq.

The company’s MVPHS fell short of the $15 million requirement for continued listing on the Nasdaq Global Select Market, as stipulated by Nasdaq Listing Rule 5450(b)(2)(C). Additionally, Stardust Power’s common stock bid price closed under the $1.00 minimum, breaching the Nasdaq Listing Rule 5450(a)(1). These deficiencies do not immediately affect the listing of Stardust’s common stock, though InvestingPro analysis indicates the company faces broader financial challenges with a WEAK overall financial health score and rapidly diminishing cash reserves.

Stardust Power has until September 15, 2025, to regain compliance with both the MVPHS and the minimum bid price requirement. To meet Nasdaq’s standards, the company must maintain a MVPHS of at least $15 million and a closing bid price of $1.00 or more per share for at least ten consecutive business days within this 180-day grace period. The stock has traded between $0.53 and $28.38 over the past 52 weeks, with recent trading showing high price volatility according to InvestingPro metrics.

Should Stardust Power remain non-compliant with the bid price requirement, it may be eligible for an additional 180-day period to achieve compliance, which would involve transferring its common stock listing to the Nasdaq Capital Market. The company plans to actively monitor its compliance status and consider all available options, including a potential reverse stock split or market transfer, to regain compliance with Nasdaq’s requirements.

The forward-looking statements in Stardust Power’s SEC filing, including plans to monitor and address listing compliance, are subject to various risks and uncertainties. The company’s management has expressed their intent to explore all possible avenues to maintain their Nasdaq listing status, although there is no guarantee of success. Financial indicators from InvestingPro reveal concerning trends, including negative earnings per share of -$1.63 and short-term obligations exceeding liquid assets, suggesting significant challenges ahead.

This report is based on Stardust Power Inc.’s recent SEC filing and contains statements regarding the company’s future plans and actions to address compliance issues with Nasdaq listing standards.

In other recent news, Stardust Power Inc. has announced a preliminary agreement with Sumitomo Corporation of Americas for a substantial lithium carbonate supply deal. This non-binding letter agreement outlines a potential 10-year offtake arrangement, with an option to extend for an additional five years. Sumitomo would purchase 20,000 metric tons of lithium carbonate annually from Stardust Power, with the possibility of increasing to 25,000 metric tons based on mutual consent. The agreement is contingent on the first qualification of Stardust Power’s lithium carbonate for sale. Additionally, Stardust Power has set the terms for a public offering expected to generate approximately $5.75 million in gross proceeds. The offering includes 4,792,000 shares of common stock and warrants, priced at $1.20 per share and accompanying warrant. A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the exclusive placement agent for this offering. Stardust Power plans to use the net proceeds for working capital, general corporate purposes, and settling certain promissory notes.

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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