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Investing.com -- GreenPower Motor Company Inc. (NASDAQ:GP) (TSXV:GPV) stock tumbled 8.7% after the electric vehicle manufacturer received a delisting determination from Nasdaq for failing to maintain the minimum $1 bid price requirement.
The company announced it received a determination letter on August 27 stating it had not regained compliance with Nasdaq’s listing rules. GreenPower’s shares have traded below the $1 threshold for more than 30 consecutive business days, violating Nasdaq’s minimum price requirement. The company plans to appeal the decision and request a hearing before a Nasdaq Hearings Panel.
According to the Nasdaq letter, GreenPower is not eligible for an additional 180-day compliance period because it doesn’t meet the $5 million minimum stockholders’ equity requirement for Nasdaq Capital Market listings. The stock exchange has scheduled GreenPower for delisting on September 5, pending the appeal.
The company is also facing a separate compliance issue with Nasdaq’s minimum equity requirements, which was flagged on August 15. This deficiency serves as an additional criterion for delisting that GreenPower must address in its appeal.
If GreenPower fails in its appeal efforts, the company expects its shares would continue trading on the TSX Venture Exchange in Canada and potentially move to one of the OTC Markets Group’s platforms in the United States.
The company stated it is "diligently working to satisfy Nasdaq’s requirements in a timely manner." GreenPower’s request for a hearing will temporarily stay the suspension of its shares pending the panel’s decision.
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