Crown LNG Announces Receipt of Nasdaq Notification Regarding Nasdaq Listing Rule 5550

Rhea-AI Summary

Crown LNG Holdings , a provider of LNG terminal technologies, has received a notification from Nasdaq on September 3, 2024, regarding non-compliance with the minimum bid price requirement. The company's stock has traded below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). Crown LNG has until March 3, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. If unsuccessful, the company may be eligible for an additional 180-day compliance period. Crown LNG is considering options to address this issue, including a potential reverse stock split. However, there is no guarantee that the company will regain compliance with the Bid Price Rule.

Positive

• None.

Negative

• Stock price has fallen below $1.00 for 30 consecutive business days
• Risk of potential delisting from Nasdaq if compliance is not regained
• Possible need for a reverse stock split, which could impact shareholder value

Insights

Financial Analyst

Crown LNG's notification from Nasdaq regarding non-compliance with the minimum bid price rule is a significant concern for investors. The company's stock trading below $1.00 for an extended period indicates weak market sentiment and potential liquidity issues. While Crown has until March 3, 2025, to regain compliance, failure to do so could lead to delisting, severely impacting investor confidence and the company's ability to raise capital. The mention of a possible reverse stock split as a remedy is noteworthy, but such moves often fail to address underlying financial challenges. Investors should closely monitor Crown's efforts to boost its stock price and overall financial health in the coming months.

Market Research Analyst

This notification highlights a broader trend in the LNG sector, where many companies are facing challenges due to market volatility and changing energy landscapes. Crown LNG's situation may reflect industry-wide pressures rather than company-specific issues. The 180-day compliance period provides a important window for Crown to demonstrate its value proposition to the market. Investors should watch for any strategic initiatives, such as new contracts or technological advancements, that could boost investor confidence and share price. The company's response to this challenge will be a key indicator of its management's ability to navigate market headwinds and maintain its position in the competitive LNG infrastructure space.

Legal Expert

From a legal standpoint, Crown LNG's prompt disclosure of the Nasdaq notification demonstrates compliance with regulatory requirements. The company now faces a critical period where it must balance the need to regain compliance with its fiduciary duty to shareholders. If a reverse stock split is considered, it will require shareholder approval, potentially leading to a proxy battle if investors disagree with the strategy. The company must also be cautious about any public statements regarding plans to boost stock price to avoid potential securities law violations. The next 180 days will be important for Crown's legal team in navigating compliance issues while protecting the company's and shareholders' interests.

LONDON, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Crown LNG Holdings Limited (“Crown” or “Crown LNG”), a leading provider of LNG liquefaction and regasification terminal technologies for harsh weather locations, today announced that on September 3, 2024, the Company received a notification letter (the "Notification Letter") from the Listings Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") regarding a failure to meet Nasdaq's minimum bid price requirements. The Notification Letter advised that for the last 30 consecutive business the minimum closing bid price per share for the Company's common stock was below the $1.00 per share requirement for continued listing under Nasdaq Listing Rule 5550(a)(2) (the "Bid Price Rule"). This press release is issued pursuant to Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification.

The Notification Letter has no immediate effect on the listing or trading of the Company's common stock on the Nasdaq Capital Market.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of 180 calendar days, or until March 3, 2025 (the "Compliance Period"), to regain compliance with the Bid Price Rule. If at any time during the Compliance Period, the closing bid price per share of the Company's common stock is at least $1.00 for a minimum of 10 consecutive business days, Nasdaq will provide the Company a written confirmation of compliance and the matter will be closed, unless the Staff exercises its discretion to extend this 10 day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H).

In the event the Company does not regain compliance by March 3, 2025, the Company may be eligible for an additional 180 calendar day period to regain compliance. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, including by effecting a reverse stock split, if necessary. If the Company chooses to implement a reverse stock split, it must complete the split no later than ten business days prior to the expiration of the second compliance period.

The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider available options to regain compliance with the Bid Price Rule, which could include effecting a reverse stock split. However, there can be no assurance that the Company will be able to regain compliance with the Bid Price Rule.

About Crown LNG Holdings Limited
Crown LNG is a leading provider of offshore LNG liquefaction and regasification terminal infrastructure solutions for harsh weather locations, which represent a significant addressable market for bottom-fixed, gravity based (“GBS”) liquefaction and floating storage regasification units, as well as associated green and blue hydrogen, ammonia and power projects. Through this approach, Crown aims to provide lower carbon sources of energy securely to under-served markets across the globe. Visit www.crownlng.com/investors for more information.

FAQ

What is the current Nasdaq compliance issue for Crown LNG Holdings (CGBS)?

Crown LNG Holdings (CGBS) has failed to meet Nasdaq's minimum bid price requirement of $1.00 per share for 30 consecutive business days, violating Listing Rule 5550(a)(2).

When did Crown LNG Holdings (CGBS) receive the Nasdaq notification letter?

Crown LNG Holdings (CGBS) received the Nasdaq notification letter on September 3, 2024.

What is the deadline for Crown LNG Holdings (CGBS) to regain Nasdaq compliance?

Crown LNG Holdings (CGBS) has until March 3, 2025, to regain compliance with Nasdaq's minimum bid price rule.

How can Crown LNG Holdings (CGBS) regain Nasdaq compliance?

Crown LNG Holdings (CGBS) can regain compliance if its closing bid price is at least $1.00 for a minimum of 10 consecutive business days before March 3, 2025.

What options is Crown LNG Holdings (CGBS) considering to address the Nasdaq compliance issue?

Crown LNG Holdings (CGBS) is considering available options, including the possibility of implementing a reverse stock split to regain compliance with Nasdaq's minimum bid price rule.