Dragonfly Energy Holdings Corp. (NASDAQ:DFLI), a Nevada-based company specializing in miscellaneous electrical equipment and supplies with a market capitalization of $23.7 million, announced today that it has regained compliance with Nasdaq's minimum bid price requirement.
The company had previously been notified of non-compliance due to its common stock's closing bid price falling below the $1.00 threshold for 30 consecutive business days. According to InvestingPro data, the stock currently trades at $3.59, significantly below its 52-week high of $13.14.
The Nasdaq Listing Rule 5450(a)(1), which mandates that listed companies maintain a minimum bid price of $1.00 per share, was the basis for the initial notification received by Dragonfly Energy on December 15, 2023. To address this, Nasdaq granted the company a 180-day extension period until December 6, 2024, to meet the requirement.
Dragonfly Energy successfully increased its stock price to meet the minimum bid price requirement within the given timeframe. On Monday, the company received official communication from Nasdaq confirming that it has achieved compliance, effectively resolving the issue.
InvestingPro analysis indicates the company faces significant challenges, with a weak financial health score and declining revenues of -34.1% in the last twelve months. Get access to 16+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
The return to compliance removes the immediate threat of delisting from the Nasdaq Capital Market, where both Dragonfly Energy's common stock and redeemable warrants are traded under the symbols DFLI and DFLIW, respectively. While the stock appears undervalued based on InvestingPro's Fair Value analysis, investors should note the company's challenging financial position, with a current ratio of 0.8 and significant debt obligations.
This development follows Dragonfly Energy's transition from its former identity as Chardan NexTech Acquisition 2 Corp., which took place on February 25, 2021. As a company focused on manufacturing within the electrical machinery sector, Dragonfly Energy's executive leadership, including Chief Executive Officer and Interim Chief Financial Officer Denis Phares, has navigated the company through this period of financial adjustment.
The information in this article is based on a recent SEC filing by Dragonfly Energy Holdings Corp.
In other recent news, Dragonfly Energy Holdings Corp. has executed a one-for-nine reverse stock split and experienced a decrease in net sales to $12.7 million from $15.9 million the previous year, as revealed in its Third Quarter 2024 Earnings Call.
This comes alongside the company's expansion into the heavy-duty trucking sector and the announcement of plans to launch the Dragonfly Intelligence system in the fourth quarter of 2024.
Investment dealer Canaccord Genuity (TSX:CF) adjusted its price target on shares of Dragonfly Energy, reducing it to $1.25 from $1.50, due to concerns over recovery pace in the recreational vehicle market and slower customer uptake in the trucking sector.
Despite these concerns, Canaccord Genuity remains optimistic about Dragonfly Energy's potential to revolutionize battery manufacturing economics and emphasizes the need for a strategic capital infusion to accelerate the company's plans. These are just a few of the recent developments at Dragonfly Energy.
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