Chijet Motor Company Inc. Announces Receipt of Two Nasdaq Deficiency Notices

Rhea-AI Summary

Chijet Motor Company, Inc. (NASDAQ: CJET), a high-tech enterprise in the vehicle industry, has received two deficiency notices from Nasdaq. The company failed to maintain the minimum required market value of listed securities (MVLS) of $50 million and the minimum market value of publicly held shares (MVPHS) of $15 million. CJET has until February 11, 2025, to regain compliance with both requirements.

To comply, CJET's MVLS must close at $50 million or more, and its MVPHS at $15 million or more, for at least ten consecutive business days within the 180-day period. Failure to meet these conditions may result in delisting, although CJET can appeal or apply for transfer to the Nasdaq Capital Market. The company is evaluating potential actions to regain compliance.

Positive

• 180-day compliance period granted to regain Nasdaq listing requirements
• No immediate effect on CJET's listing or trading on Nasdaq Global Market
• Option to appeal potential delisting decision or apply for Nasdaq Capital Market transfer

Negative

• Failed to maintain minimum $50 million market value of listed securities
• Failed to maintain minimum $15 million market value of publicly held shares
• Risk of delisting from Nasdaq Global Market if compliance not regained by February 11, 2025

News Market Reaction – CJET

-6.29%

1 alert

-6.29% News Effect

On the day this news was published, CJET declined 6.29%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

JILIN CITY, China, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Chijet Motor Company, Inc. (NASDAQ: CJET) (the “Company”), a high-tech enterprise engaged in the development, manufacture, sales, and service of traditional fuel vehicles and new energy vehicles (“NEV”) today announced that, on August 15, 2024, it received two notification letters (the “Nasdaq Notices”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that (i) for the preceding 30 consecutive business days, the market value of the Company’s listed securities (“MVLS”) did not maintain a minimum market value of $50,000,000 (the “Minimum MVLS Requirement”) as required by Nasdaq Listing Rule 5450(b)(2)(A), and (ii) for the preceding 32 consecutive business days, the market value of the Company’s publicly held shares (“MVPHS”) did not maintain a minimum market value of $15,000,000 (the “Minimum MVPHS Requirement”) as required by Nasdaq Listing Rule 5450(b)(2)(C).

In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company has a compliance period of 180 calendar days, or until February 11, 2025, to regain compliance with the Minimum MVLS Requirement. In accordance with Nasdaq Listing Rule 5810(c)(3)(D), the Company has a compliance period of 180 calendar days, or until February 11, 2025, to regain compliance with the Minimum MVPHS Requirement. Compliance with Nasdaq Listing Rule 5810(c)(3)(C) may be achieved if the Company’s MVLS closes at $50,000,000 or more for a minimum of ten consecutive business days at any time during the 180-day compliance period, in which case Nasdaq will notify the Company of its compliance and the matter will be closed. Similarly, compliance with Nasdaq Listing Rule 5450(b)(2)(C) may be achieved if the Company’s MVPHS closes at $15,000,000 or more for a minimum of ten consecutive business days at any time during the 180-day compliance period, in which case Nasdaq will notify the Company of its compliance and the matter will be closed.

If the Company does not regain compliance with both the Minimum MVLS Requirement and the Minimum MVPHS Requirement by February 11, 2025, Nasdaq will provide written notification to the Company that its securities are subject to delisting. At that time, the Company may appeal the relevant delisting determination to a hearings panel pursuant to the procedures set forth in the applicable Nasdaq Listing Rules. However, there can be no assurance, if the Company does appeal the delisting determination by Nasdaq to the hearings panel, that such appeal would be successful. In such event, the Company may also seek to apply for a transfer to The Nasdaq Capital Market if it meets the requirements for continued listing thereon.

The two Nasdaq Notices will have no immediate effect on the Company’s continued listing on the Nasdaq Global Market or the trading of Company’s securities, subject to the Company’s compliance with the other continued listing requirements. The Company is presently evaluating potential actions to regain compliance with all applicable requirements for continued listing on the Nasdaq Global Market. There can be no assurance that the Company will be successful in maintaining the listing of its securities on the Nasdaq Global Market.

About Chijet Motor Company, Inc.

The primary business of Chijet is the development, manufacture, sales, and service of traditional fuel vehicles and NEVs. State-of-the-art manufacturing systems and stable supply chain management enable the Company to provide consumers with products of high performance at reasonable prices. In addition to its large modern vehicle production base in Jilin, China, a factory in Yantai, China will be dedicated to NEV production upon completion of its construction. Chijet has a management team of industry veterans with decades of experience in engineering and design, management, financing, industrial production, and financial management. For additional information about Chijet, please visit www.chijetmotors.com.

Chijet Contact:

2888 Dongshan Street
Gaoxin Automobile Industrial Park
Jilin City, JL. P.R.China
0535-2766202
EMAIL: info@chijetmotors.com

Investor Relations Contact:
Skyline Corporate Communications Group, LLC
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835 x2
Email: info@skylineccg.com

Forward-Looking Statements

This press release contains forward-looking statements as defined under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, formulated in accordance with the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. These statements, reflecting the Company's projections about its future financial and operational performance, employ terms like 'believes,' 'estimates,' 'anticipates,' 'expects,' 'plans,' 'projects,' 'intends,' 'potential,' 'target,' 'aim,' 'predict,' 'outlook,' 'seek,' 'goal,' 'objective,' 'assume,' 'contemplate,' 'continue,' 'positioned,' 'forecast,' 'likely,' 'may,' 'could,' 'might,' 'will,' 'should,' 'approximately,' and similar expressions to convey the uncertainty of future events or outcomes. These forward-looking statements are based on the Company's current expectations, assumptions, and projections, involving judgments about future economic conditions, competitive landscapes, market dynamics, and business decisions, many of which are inherently challenging to predict accurately and are largely beyond the Company's control. Additionally, these statements are subject to a multitude of known and unknown risks, uncertainties, and other variables that could significantly diverge the Company's actual results from those depicted in any forward-looking statement. These factors include, but are not limited to, varying economic conditions, competitive pressures, and regulatory changes. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

FAQ

What Nasdaq deficiency notices did Chijet Motor Company (CJET) receive on August 15, 2024?

CJET received two deficiency notices from Nasdaq for failing to maintain the minimum market value of listed securities (MVLS) of $50 million and the minimum market value of publicly held shares (MVPHS) of $15 million.

What is the deadline for Chijet Motor Company (CJET) to regain compliance with Nasdaq requirements?

CJET has until February 11, 2025, to regain compliance with both the MVLS and MVPHS requirements set by Nasdaq.

How can Chijet Motor Company (CJET) regain compliance with Nasdaq listing requirements?

CJET can regain compliance if its MVLS closes at $50 million or more and its MVPHS closes at $15 million or more for a minimum of ten consecutive business days before February 11, 2025.

What are the potential consequences if Chijet Motor Company (CJET) fails to meet Nasdaq requirements by February 11, 2025?

If CJET fails to meet the requirements, it may face delisting from Nasdaq Global Market. However, the company can appeal the decision or apply for transfer to the Nasdaq Capital Market if eligible.