Tritium Receives Nasdaq Delisting Determination
Tritium DCFC (Nasdaq: DCFC) faces delisting from Nasdaq due to non-compliance with the Minimum Bid Price Requirement. The Company received a Delisting Notice after its ordinary shares closed below $1.00 for ten consecutive trading days. Tritium plans to appeal and proposes a reverse stock split.
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Tritium DCFC received a Delisting Notice from Nasdaq due to the closing bid price of its ordinary shares being $0.10 or less for ten consecutive trading days, leading to the initiation of the delisting process.
The Company has faced challenges in maintaining compliance with the Minimum Bid Price Requirement, which could impact its stock market standing and investor confidence.
Tritium DCFC 's ordinary shares closing below $1.00 for an extended period raises concerns about its financial performance and market valuation.
The notice of delisting received by Tritium DCFC Limited from Nasdaq is significant due to its potential influence on investor confidence and market perception. A delisting typically indicates that a company is facing substantial financial challenges, often leading to a decrease in liquidity and marketability of its shares. The company's decision to propose a reverse stock split is a strategic move to elevate the share price above the Nasdaq's Minimum Bid Price Requirement, which is a common tactic employed by companies in this situation.
Historically, a reverse stock split can be a red flag for investors, as it may signify underlying issues within the company's operations or financial health. Although it can provide a temporary solution to meet exchange listing requirements, it does not address the root causes of the company's low share price. Investors should monitor the company's fundamental performance indicators, such as revenue growth, profit margins and market share within the EV charging industry, following the reverse stock split to gauge the long-term viability of the company.
The delisting process initiated by Nasdaq against Tritium DCFC Limited can have immediate financial repercussions, including reduced access to capital markets and a potential decline in share value due to perceived risk. The share price of $0.10 reflects a significant departure from the $1.00 threshold set by Nasdaq, indicating a severe market valuation concern. Investors should be aware that the liquidity of Tritium's shares could be further compromised if the delisting proceeds, as many institutional investors and funds have policies against holding stocks not listed on major exchanges.
Furthermore, the timing of the reverse stock split, planned to coincide with the administrative procedures for listing exchange requirements, suggests that Tritium is taking proactive measures to maintain its listing. However, the effectiveness of such measures will depend on the company's ability to convince the Nasdaq Hearings Panel of its plan to return to compliance and the market's reception of the reverse stock split. The company's future access to equity financing could be significantly impacted by these events, which is an important consideration for stakeholders.
From a legal standpoint, the delisting notice and the subsequent appeal process involve complex regulatory procedures governed by Nasdaq's Listing Rules. Tritium's approach to request a hearing before the Nasdaq Hearings Panel is a standard right afforded to companies facing delisting. The outcome of such hearings can be uncertain and the company will need to present a compelling case for continued listing, which may include plans for financial restructuring, strategic initiatives, or evidence of imminent operational improvements.
The proposed extraordinary general meeting to vote on a reverse stock split is also a critical legal procedure that requires shareholder approval. The consolidation of shares aims to comply with Nasdaq's requirements, but it also alters the equity structure of the company. Shareholders should consider the implications of such a consolidation, including the potential dilution of voting power and changes in share value. It is essential for the company to conduct this process with transparency and in accordance with corporate governance standards to maintain shareholder trust during this challenging period.
03/21/2024 - 07:00 AM
BRISBANE, Australia, March 21, 2024 (GLOBE NEWSWIRE) -- Tritium DCFC Limited (Nasdaq: DCFC) (“Tritium” or the “Company”), a global developer and manufacturer of direct current (“DC”) fast chargers for electric vehicles (“EVs”), today announced that on March 15, 2024 the Company received a delisting determination notice (the “Delisting Notice”) from the Nasdaq Stock Market LLC (“Nasdaq”).
As previously reported, on October 12, 2023 the Company received an initial notice (“the Deficiency Notice”) from Nasdaq indicating that the Company was not in compliance with Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Requirement”) because the bid price of the Company’s ordinary shares trading on the Nasdaq Global Market had closed below $1.00 per share for the previous 30 consecutive business days. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), we were provided a period of 180 calendar days, or until April 9, 2024, to regain compliance with the Minimum Bid Price Requirement.
On March 15, 2024, the Company received the subsequent Delisting Notice from Nasdaq notifying the Company that, as of March 15, 2024, the Company's ordinary shares had a closing bid price of $0.10 or less for ten consecutive trading days and that, consistent with Nasdaq Listing Rule 5810(c)(3)(A)(iii), Nasdaq had determined to begin the process to delist the Company's common stock from the Nasdaq Global Market. The Delisting Notice provided that the Company had an opportunity to appeal Nasdaq's decision.
On March 22, 2024, the Company intends to submit a request for a hearing before the Nasdaq Hearings Panel to appeal the Delisting Notice. The Company simultaneously is holding an extraordinary general meeting of shareholders on March 22, 2024 to vote upon a reverse stock split on the basis that every two-hundred (200) ordinary shares of the Company’s stock (the “Shares”) be consolidated into one (1) Share, with the consolidation to take effect upon the completion of administrative procedures pursuant to listing exchange requirements with an anticipated effective date of April 1, 2024.
About Tritium
Founded in 2001, Tritium (NASDAQ: DCFC) designs and manufactures proprietary hardware and software to create advanced and reliable DC fast chargers for electric vehicles. Tritium’s compact and robust chargers are designed to look great on Main Street and thrive in harsh conditions, through technology engineered to be easy to install, own, and use. Tritium is focused on continuous innovation in support of our customers around the world.
For more information, visit tritiumcharging.com.
Forward Looking Statements
This press release includes “forward-looking statements.” The Company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “continue,” “aim” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s expectations, hopes, beliefs, intentions, or strategies for the future, including those that relate to the Company’s share price and good standing with Nasdaq. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. The Company cautions not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
Media Contact
media@tritiumcharging.com
Why did Tritium DCFC receive a Delisting Notice from Nasdaq?
Tritium received the Delisting Notice due to its ordinary shares closing below $1.00 for ten consecutive trading days, triggering non-compliance with the Minimum Bid Price Requirement.
What action is Tritium taking in response to the Delisting Notice?
Tritium plans to appeal the Delisting Notice by submitting a request for a hearing before the Nasdaq Hearings Panel.
What is the proposed solution to address the delisting issue?
Tritium is proposing a reverse stock split at an extraordinary general meeting of shareholders, consolidating every two-hundred ordinary shares into one Share.
When is the anticipated effective date of the reverse stock split?
The reverse stock split is expected to take effect on April 1, 2024, following the completion of administrative procedures pursuant to listing exchange requirements.
What is the current closing bid price of Tritium DCFC 's ordinary shares?
As of March 15, 2024, the Company's ordinary shares had a closing bid price of $0.10 or less for ten consecutive trading days, leading to the Delisting Notice from Nasdaq.
