Zapp Electric faces Nasdaq delisting over rule non-compliance

Published 19/05/2025, 13:24
Zapp Electric faces Nasdaq delisting over rule non-compliance

Zapp Electric Vehicles Group Ltd (NASDAQ:ZAPP) is set to be delisted from the Nasdaq Capital Market due to non-compliance with the exchange’s listing rules, as per a recent SEC filing. The company, which specializes in manufacturing electric motorcycles and bicycles, failed to meet the minimum bid price and market value required by the Nasdaq.

On Monday, Zapp Electric received a notification from Nasdaq stating that trading of its securities will be suspended from Tuesday, May 20, 2025. The decision follows the company’s inability to comply with the Minimum Bid Price Rule, which requires a minimum bid price of $1.00 per share, and the Minimum Market Value Rule, with a threshold of $35 million.

Previously, Zapp Electric received Staff Delisting Determinations on March 19 and April 2, 2025, and had appealed to the Nasdaq Hearings Panel. The company presented a plan for compliance at a Panel hearing on May 1, 2025. However, the plan was contingent on shareholder approval at an annual general meeting scheduled for May 15, which was canceled due to lack of quorum.

As a result, the company informed Nasdaq that it could not proceed with its compliance plan, leading to the delisting notification. Zapp Electric anticipates its securities will trade on the OTC Pink Current Market temporarily and aims to qualify for trading on the OTCQB or OTCQX markets eventually.

The SEC filing also contained forward-looking statements cautioning about potential risks and uncertainties. These statements are based on current expectations and are not guaranteed to be accurate for the future.

The information for this article is based on Zapp Electric Vehicles Group Ltd’s recent SEC filing.

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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