SPI
Spi Energy Co, LTD
NASDAQ
8-K: SPI Energy Transfers to Nasdaq Capital Market, Granted Second Extension to Regain Compliance
Sentiment:
Delisting Notice
25 April 2024 4:30 PM
SPI Energy Co., Ltd. has transferred its listing to the Nasdaq Capital Market and received a second extension until October 14, 2024, to meet the minimum $1.00 bid price requirement.
Worse than expected
The company's share price has been below the minimum bid price requirement for an extended period, leading to the transfer to the Nasdaq Capital Market and the need for a second extension to regain compliance.
Summary
- SPI Energy Co., Ltd. received notification from Nasdaq on April 23, 2024, that its listing would be transferred from the Global Select Market to the Capital Market.
- This transfer was granted along with a second 180-day extension, until October 14, 2024, to regain compliance with the $1.00 minimum bid price requirement.
- The company's shares must trade at or above $1.00 for at least 10 consecutive business days to regain compliance.
- The transfer to the Nasdaq Capital Market took effect on April 25, 2024, and is not expected to impact trading under the ticker symbol SPI.
- The company was initially notified on October 19, 2023, that it was not in compliance with the minimum bid price rule for the Global Select Market.
- SPI Energy intends to monitor its share price and consider all options, including a reverse stock split, to regain compliance.
- If compliance is not achieved by October 14, 2024, the company faces potential delisting, which could be appealed to the Nasdaq Hearings Panel.
Sentiment
Score: 3
Explanation: The sentiment is negative due to the company's failure to maintain the minimum bid price, the transfer to a lower-tier market, and the risk of delisting. The potential need for a reverse stock split also adds to the negative outlook.
Positives
- SPI Energy has been granted a second extension to regain compliance with the minimum bid price requirement.
- The transfer to the Nasdaq Capital Market allows the company more time to address the share price issue.
- The company is actively considering options, including a reverse stock split, to regain compliance.
Negatives
- SPI Energy's share price has been below $1.00 for an extended period, leading to non-compliance with Nasdaq listing rules.
- The company faces the risk of delisting if it cannot regain compliance by October 14, 2024.
- The need for a reverse stock split indicates a significant decline in share price.
Risks
- The company may not be able to achieve a share price of $1.00 for 10 consecutive business days by October 14, 2024.
- Failure to regain compliance could result in delisting from Nasdaq.
- A reverse stock split, while potentially helping with compliance, could negatively impact shareholder value.
- The company's ability to raise capital may be impacted by the delisting risk.
Future Outlook
The company intends to closely monitor its share price and consider all available options, including a reverse stock split, to regain compliance with the minimum bid price requirement by October 14, 2024. There is no guarantee that the company will be able to regain compliance.
Management Comments
- The Company intends to closely monitor the closing bid price for its Ordinary Shares and consider all available options to timely remedy the bid price deficiency.
- The Company has provided written notice to Nasdaq of its intention to cure the deficiency during the Second Compliance Period by effecting a reverse stock split, if necessary.
Industry Context
This announcement reflects the challenges faced by companies with declining share prices in maintaining their listing on major exchanges. It is not uncommon for companies to receive delisting notices and seek extensions to regain compliance. The move to the Nasdaq Capital Market is a common step for companies facing these issues.
Comparison to Industry Standards
- Many companies in the renewable energy sector, particularly smaller ones, have faced similar challenges with maintaining share price compliance on major exchanges.
- The move to the Nasdaq Capital Market is a common step for companies that have failed to meet the requirements of the Global Select Market.
- The use of reverse stock splits is a common tactic to increase share price and regain compliance, although it can be viewed negatively by investors.
- Companies like SunPower and First Solar, while larger, have also experienced share price volatility, highlighting the challenges in the renewable energy sector.
Stakeholder Impact
- Shareholders face the risk of further share price decline and potential delisting.
- Employees may experience uncertainty due to the company's financial challenges.
- Customers and suppliers may be concerned about the company's long-term viability.
Next Steps
- SPI Energy will monitor its share price closely.
- The company will consider all available options to regain compliance, including a reverse stock split.
- The company must achieve a share price of $1.00 for 10 consecutive business days by October 14, 2024, to avoid delisting.
Key Dates
- October 19, 2023: SPI Energy was notified that its share price was below $1.00 for 30 consecutive business days.
- April 16, 2024: The initial 180-day grace period to regain compliance ended.
- April 23, 2024: SPI Energy was notified of the transfer to the Nasdaq Capital Market and granted a second extension.
- April 25, 2024: The transfer to the Nasdaq Capital Market took effect.
- October 14, 2024: The deadline for SPI Energy to regain compliance with the minimum bid price requirement.
Keywords
Nasdaq, listing, compliance, minimum bid price, delisting, reverse stock split, SPI Energy, share price
SPI
Spi Energy Co, LTD
NASDAQ
Sector: TBD
Filings with Classifications
Delay expected
11 February 2025 12:46 PM
Current Report
- The fifth addendum delays the final payment of the $2,100,000 trigger payment to June 30, 2025.
Worse than expected
11 February 2025 12:46 PM
Current Report
- The need for a fifth addendum to the Deed of Settlement suggests that SPI Energy is struggling to meet its original financial obligations.
Worse than expected
5 February 2025 9:06 AM
Current Report (8-K)
- The resignation of an independent director due to concerns about cash flow and governance is worse than expected.
- The Nasdaq suspension of trading is worse than expected.
- The failure to pay director's fees is worse than expected.
Delay expected
5 February 2025 9:06 AM
Current Report (8-K)
- The company failed to file the annual report for 2023 by the prescribed deadline.
Worse than expected
14 January 2025 9:43 PM
Current Report
- The company's shares are being delisted from the Nasdaq due to violations of listing rules.
- The company failed to file required reports with the SEC in a timely manner.
- The company's share price remained below $1 for 30 consecutive business days.
- The company failed to hold its annual shareholder meeting.
Delay expected
14 January 2025 9:43 PM
Current Report
- The company's Annual Report on Form 10-K for the year ended December 31, 2023 was delayed.
- The company's Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2024 were delayed.
Delay expected
10 January 2025 9:02 AM
Settlement Agreement Announcement
- The side letter acknowledges that the Greek banks may require modifications to the Athens Injunction Judgement, potentially delaying the release of the first installment.
- The side letter allows for an extension of the timeline for the release of the first installment if delays are caused by the Greek banks or other conditions.
Capital raise
10 January 2025 9:02 AM
Settlement Agreement Announcement
- The settlement agreement mentions that SPI will need to raise funds to cover the second and third installments.
- SPI is exploring potential financing options, including pre-IPO capital raising through the split listing of its European solar projects.
Better than expected
10 January 2025 9:02 AM
Settlement Agreement Announcement
- The settlement resolves a long-standing dispute at a lower cost than originally anticipated.
- The reintegration of the Greek solar projects is expected to significantly increase the company's revenue and capacity.
Delay expected
21 November 2024 4:51 PM
Delisting Notice
- The company has delayed filing its Form 10-Q for the period ended September 30, 2024.
Worse than expected
21 November 2024 4:51 PM
Delisting Notice
- The company received a delisting notice from Nasdaq due to a failure to file its quarterly report, which is a negative development.
Worse than expected
23 October 2024 4:33 PM
Delisting Notice
- The company received a delisting notice from Nasdaq due to non-compliance with listing rules, indicating worse than expected performance.
Delay expected
23 October 2024 4:33 PM
Delisting Notice
- The company failed to file its Form 10-K for 2023 and Form 10-Q for Q1 and Q2 2024 by the required deadlines.
Worse than expected
17 October 2024 4:30 PM
Delisting Notice
- The company failed to meet the minimum bid price requirement and failed to file required financial reports, leading to a delisting notice.
Delay expected
17 October 2024 4:30 PM
Delisting Notice
- The company failed to file its 2023 Form 10-K and Q1 and Q2 2024 Form 10-Q reports by the required deadline.
Delay expected
26 August 2024 4:30 PM
Regulatory Filing
- The company has delayed filing its 2023 annual report and Q1 and Q2 2024 quarterly reports.
Worse than expected
26 August 2024 4:30 PM
Regulatory Filing
- The company has received a third notice of non-compliance from Nasdaq, indicating a worsening situation regarding its financial reporting.
Worse than expected
21 May 2024 5:00 PM
Regulatory Filing
- The company has received a second non-compliance notice from Nasdaq, indicating a worsening situation regarding their financial reporting.
Delay expected
21 May 2024 5:00 PM
Regulatory Filing
- The company has delayed filing both its annual report for 2023 and its quarterly report for Q1 2024.
Worse than expected
25 April 2024 4:30 PM
Delisting Notice
- The company's share price has been below the minimum bid price requirement for an extended period, leading to the transfer to the Nasdaq Capital Market and the need for a second extension to regain compliance.
Worse than expected
22 April 2024 4:15 PM
8-K Filing
- The company has failed to meet the deadline for filing its annual report, which is a negative indicator of its financial reporting processes.
Delay expected
22 April 2024 4:15 PM
8-K Filing
- The company's 2023 annual report is delayed, leading to a non-compliance notice from Nasdaq.
Worse than expected
20 March 2024 4:39 PM
Settlement Agreement Announcement
- The company was facing a winding up petition, indicating significant financial distress.
- The company had to agree to a settlement to avoid liquidation, which includes a large repayment amount.
- The company failed to repay its debts, leading to the winding up petition.
Delay expected
20 March 2024 4:39 PM
Settlement Agreement Announcement
- The settlement agreement replaces a prior agreement, delaying the repayment timeline from April 8, 2024 to December 31, 2024.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.