AACHEN, Germany - Next.e.GO N.V. (NASDAQ:EGOX), a German electric vehicle manufacturer, is confronting potential delisting from the Nasdaq Stock Market due to non-compliance with the exchange's minimum bid price requirements.
The company disclosed on Monday that it had received a Staff determination letter from Nasdaq's Listing Qualifications Department, indicating its securities had closed below the minimum bid price of $0.10 for ten consecutive trading days.
This breach of the Nasdaq Listing Rule 5810(c)(3)(A)(iii), known as the Low Priced Stocks Rule, has triggered a delisting notice. Furthermore, e.GO's stock has also failed to meet the Nasdaq's Minimum Bid Price Rule, which mandates that securities maintain a closing bid price at or above $1.00. The company has been granted a 180-day period, ending on June 10, 2024, to regain compliance with this rule.
If e.GO does not correct the bid price shortfall within the allotted timeframe, Nasdaq will proceed with an additional delisting basis. Trading of e.GO's shares is slated to be suspended at the start of business on April 3, 2024, unless the company appeals the determination.
e.GO has announced its intention to appeal to a Hearings Panel, a move that would stay the suspension and the filing of the Form 25-NSE with the SEC, which would formally remove the company's securities from Nasdaq listing and registration.
e.GO is exploring options to address the minimum bid price requirement and regain compliance for continued listing on the Nasdaq. The company, headquartered in Aachen, specializes in the design and manufacture of battery electric vehicles tailored for urban use, employing proprietary technologies and MicroFactories to produce its vehicles.
The information in this article is based on a press release statement by e.GO and does not include any opinions or recommendations. It is a straightforward presentation of the company's current situation regarding its Nasdaq listing status.
InvestingPro Insights
The recent challenges faced by Next.e.GO N.V. (NASDAQ:EGOX) are reflected in the company's stock performance data. According to InvestingPro metrics, the company has experienced a steep decline in its stock price over various timeframes, including a 1 Month Price Total Return of -57.41%, a 3 Month Price Total Return of -88.9%, and a 6 Month Price Total Return of -99.52%. Additionally, the Year-To-Date (YTD) Price Total Return stands at -88.96%, with the stock trading at only 0.4% of its 52-week high.
These figures underscore the severity of e.GO's market position, with the stock's Average Daily Volume over the last three months reaching 7.49 million USD, indicating significant investor activity amidst the company's performance downturn. The InvestingPro Tips further highlight the company's challenges, noting that e.GO's stock generally trades with low price volatility, but suffers from weak gross profit margins and a valuation that implies a poor free cash flow yield. Moreover, e.GO is not profitable over the last twelve months and does not pay a dividend to shareholders, which could concern potential and current investors.
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