SHANGHAI - U Power Limited (NASDAQ:UCAR), a provider of vehicle sourcing services and developer of battery-swapping technology for electric vehicles (EVs), is confronting a potential delisting from the Nasdaq Capital Market. The company was notified by Nasdaq on February 14, 2024, that its ordinary shares had fallen below the minimum bid price requirement.
The Nasdaq notification stated that U Power's shares had closed at a bid price of $0.10 or less for ten consecutive trading days as of February 13, 2024, breaching the Nasdaq Listing Rule 5810(c)(3)(A)(iii), commonly referred to as the Low Priced Stocks Rule. Furthermore, the company does not meet the Nasdaq Listing Rule 5550(a)(2), which mandates that shares maintain a minimum bid price of $1.00, an issue for which U Power had previously received a notice on January 19, 2024.
In response to the delisting notice, U Power is set to appeal to a Nasdaq Hearings Panel on Wednesday. The appeal will temporarily halt the suspension of trading and the filing of Form 25-NSE with the SEC, which would formally remove U Power from Nasdaq listing and registration.
As part of its strategy to regain compliance with Nasdaq's listing requirements, U Power is considering several options, including a reverse share split. The company will continue to monitor its share price closely.
U Power, established in 2013, has developed a network for sourcing vehicles, primarily in China's lower-tier cities, and has been focusing on its proprietary UOTTA battery-swapping technology. The company operates a manufacturing factory in Zibo City, Shandong Province, China, and has developed two types of battery-swapping stations for compatible EVs.
This news comes from a press release statement issued by U Power Limited.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.