Caravelle International Group Announces Receipt of Nasdaq Deficiency Notice

Rhea-AI Summary

Caravelle International Group (Nasdaq: CACO) received a notice from Nasdaq regarding non-compliance with filing its Annual Report on Form 20-F for the fiscal year ended Oct 31, 2023. The company has 60 days to submit a compliance plan to Nasdaq, with a possible extension of 180 days. Failure to comply may lead to delisting from Nasdaq.

Positive

• None.

Negative

• Possible delisting from Nasdaq if compliance is not regained in time.

Market Research Analyst

The notice received by Caravelle International Group regarding its non-compliance with Nasdaq Listing Rule 5250(c)(1) could have a ripple effect on investor confidence. Typically, when a company delays its financial reporting, it raises concerns about the potential discovery of accounting irregularities or operational issues. Investors may become wary, which can lead to increased volatility in the company's stock price. The company's commitment to rectify the situation is positive, but until the actual filing and content of the report are reviewed, uncertainty remains. The impact of this notice should be monitored closely as it could influence not only Caravelle's stock but also the broader ocean technology sector, which relies on investor trust and transparent financial disclosures.

Financial Analyst

From a financial perspective, the delay in filing the Annual Report could signal underlying financial difficulties or complexities within Caravelle International Group. The market reacts to uncertainty and such delays often result in a negative perception, potentially affecting the stock's performance. If the company's plan to regain compliance is not accepted by Nasdaq and the stock is delisted, it would significantly reduce the stock's liquidity and accessibility, deterring institutional investors and potentially leading to a lower stock price. On the other hand, if the company manages to file within the grace period and the report does not reveal any significant issues, the stock could recover quickly. Analyzing the company's past financial health and the industry's financial reporting standards could offer insights into what to expect when the report is finally released.

Legal Expert

The legal implications of Caravelle's non-compliance with Nasdaq's reporting requirements are serious. The company's securities may face delisting, which is a complex legal process with implications for shareholder rights and the company's ability to raise capital. The 60-day window to submit a compliance plan is a critical period during which the company must work diligently with legal advisors to address Nasdaq's concerns. The legal team's expertise in securities law and compliance will be pivotal in navigating this process and ensuring that the company meets all necessary legal thresholds to maintain its listing status. Furthermore, the company's proactive approach to enhancing its internal reporting processes may mitigate legal risks and facilitate a more favorable outcome with Nasdaq.

SINGAPORE, March 29, 2024 /PRNewswire/ -- Caravelle International Group (Nasdaq: CACO), a global ocean technology company, today announced that it received a notice from The Nasdaq Stock Market LLC (Nasdaq) indicating that, as a result of not having timely filed its Annual Report on Form 20-F for the fiscal year ended Oct 31, 2023, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the Securities and Exchange Commission.

The Notice has no immediate impact on the listing of the Company's securities, which will continue to trade on Nasdaq, subject to the Company's compliance with the other continued listing requirements of Nasdaq. Under the Nasdaq Listing Rules, the Company has 60 calendar days from the date of the Notice to submit a plan of compliance to Nasdaq. If Nasdaq accepts the plan, they can grant the Company an exception of up to 180 calendar days from the original due date of the Form 20-F, or until Sept. 10, 2024, to regain compliance. However, there can be no assurance that Nasdaq will accept the Company's plan to regain compliance or that the Company will be able to regain compliance within any extension period granted by Nasdaq. If the Company fails to timely regain compliance with the Nasdaq Listing Rules, the securities of the Company will be subject to delisting from Nasdaq. The Company intends to file the Annual Report as soon as practicable.

Caravelle International Group is fully committed to satisfying all of NASDAQ's listing requirements. The company has implemented a comprehensive plan to enhance its internal reporting processes and is working closely with its auditors and legal advisors to ensure the timely and accurate submission of all necessary documents.

About Caravelle International Group

Caravelle is a global ocean technology company. Its business comprises of two sectors: the traditional business in international shipping, operated by the Topsheen Companies (Topsheen Shipping Group Corporation (Samoa) and its subsidiaries) and the new CO-Tech business under Singapore Garden Technology Pte. Ltd.. As the traditional business, Caravelle's international shipping business has generated all revenues. The CO-Tech business is a new development building upon the existing shipping business. It enables wood desiccation during the maritime shipping process, with full utilization of the shipping time, space, and the waste heat of exhaust gas from the shipping vessels. Caravelle's CO-Tech industry has no historical operations and has not generated revenue. Caravelle is headquartered in Singapore.

 Forward Looking Statements

This announcement contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Such statements include, but are not limited to risks detailed in the Company's filings with the U.S. Securities and Exchange Commission. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. All information provided in this press release is as of the date of the publication, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

 

 

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SOURCE Caravelle International Group

FAQ

What notice did Caravelle International Group receive from Nasdaq?

Caravelle International Group received a notice from Nasdaq regarding non-compliance with filing its Annual Report on Form 20-F for the fiscal year ended Oct 31, 2023.

What is the ticker symbol for Caravelle International Group?

The ticker symbol for Caravelle International Group is CACO.

What are the consequences of not regaining compliance with Nasdaq Listing Rules?

Failure to timely regain compliance with the Nasdaq Listing Rules may lead to delisting of the company's securities from Nasdaq.

How long does Caravelle International Group have to submit a compliance plan to Nasdaq?

Caravelle International Group has 60 calendar days from the date of the Notice to submit a plan of compliance to Nasdaq.

What steps is Caravelle International Group taking to enhance compliance with Nasdaq's listing requirements?

The company has implemented a comprehensive plan to enhance its internal reporting processes and is working closely with its auditors and legal advisors to ensure timely and accurate submission of necessary documents.