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EZGO Announces Receipt of Nasdaq Delisting Determination and Plan to Appeal

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EZGO Technologies (Nasdaq: EZGO) received a delisting determination notice from Nasdaq due to its Ordinary Shares closing bid price being below $1.00 for ten consecutive trading days. The company has until April 15, 2024, to regain compliance. EZGO plans to appeal the decision and is exploring options like a reverse stock split.
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  • EZGO received a delisting notice due to its Ordinary Shares closing bid price being $0.10 or less for ten consecutive trading days, indicating financial struggles.
  • The potential delisting from Nasdaq could harm the company's reputation and investor confidence, leading to further stock price declines.
  • EZGO's need for a reverse stock split to regain compliance may result in shareholder dilution and negative market sentiment.

The notice of delisting received by EZGO Technologies Ltd. from Nasdaq is a significant development that can have a material impact on the company's stock liquidity and market perception. Delisting often leads to a decrease in investor confidence and can result in a lower stock price due to the reduced visibility and trading volume that comes with being removed from a major exchange. The closing bid price falling as low as $0.10 indicates a severe lack of investor confidence and market support for the stock.

Considering a reverse stock split is a common strategy to address the issue of non-compliance with minimum bid price requirements. This move can potentially bring the per-share price back above the $1.00 threshold. However, it is essential to note that while this may temporarily satisfy exchange listing requirements, it does not address the underlying business challenges that may have led to the stock's decline in value. Shareholders should closely monitor the company's operational performance and management's strategic decisions following such corporate actions.

From a market dynamics perspective, EZGO's position as a provider of short-distance transportation solutions in China places it within a competitive and rapidly evolving industry. The sector is influenced by factors such as technological advancements, regulatory changes and consumer preferences. A delisting could hinder the company's ability to raise capital and invest in innovation or expansion, potentially affecting its competitive edge.

Moreover, the appeal to Nasdaq's Hearings Panel suggests that the company is actively seeking to remedy the situation, but the success of such an appeal is uncertain. If the appeal fails and delisting occurs, the company may find it challenging to attract institutional investors and could become reliant on less regulated markets with higher volatility. Stakeholders should evaluate the company's strategic initiatives and market position to assess the long-term implications of the delisting process.

Navigating the complexities of Nasdaq's compliance requirements is a critical legal challenge for EZGO. The delisting process is governed by specific rules outlined in Nasdaq's Listing Rule 5810(c)(3)(A). The company's right to appeal provides a procedural safeguard, allowing EZGO to present a plan to regain compliance. It is important for investors to understand that the appeal process is a legal recourse that can delay, but not necessarily prevent, delisting.

Should the company proceed with a reverse stock split, it must ensure adherence to both Nasdaq's procedural guidelines and any applicable securities laws. Any misstep in this process could lead to further regulatory scrutiny or investor lawsuits. Investors should consider the legal risks associated with the delisting notice and the company's compliance efforts when assessing the potential impact on their investment.

CHANGZHOU, China, March 29, 2024 /PRNewswire/ -- EZGO Technologies Ltd. (Nasdaq: EZGO) ("EZGO" or "we," "our," or the "Company"), a leading short-distance transportation solutions provider in China, today announced it received a delisting determination notice (the "Delisting Notice") from the Nasdaq Stock Market LLC ("Nasdaq") on March 26, 2024.

As previously reported, on October 18, 2023, the Company received a letter (the "Deficiency Notice") from the Listings Qualifications Department of Nasdaq notifying the Company that the minimum closing bid price per share for its ordinary shares, par value US$0.001 per share (the "Ordinary Shares"), was below $1.00 for a period of 30 consecutive business days and that the Company did not meet the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided a period of 180 calendar days, or until April 15, 2024, to regain compliance with the Minimum Bid Price Requirement.

The Company received the Delisting Notice from Nasdaq notifying the Company that, as of March 26, 2024, the Ordinary Shares had a closing bid price of $0.10 or less for ten consecutive trading days and that, pursuant to Nasdaq Listing Rule 5810(c)(3)(A)(iii), Nasdaq had determined to begin the process to delist the Ordinary Shares from the Nasdaq Stock Market. The Delisting Notice provides the Company with an opportunity to appeal Nasdaq's decision.

The Company intends to submit, on or before April 2, 2024, the latest date permitted in the Delisting Notice, a request for a hearing before the Nasdaq Hearings Panel to appeal the Delisting Notice.

The Company is considering all options available to it, including a reverse stock split, to regain compliance and will provide its shareholders with material updates when they are available.

About EZGO Technologies Ltd.

Leveraging an Internet of Things (IoT) product and service platform and two e-bicycle brands, "EZGO" and "Cenbird," EZGO has established a business model centered on the design, manufacturing and sale of two-and three-wheeled electric vehicles, intelligent robots, , complemented by electric vehicle accessories including batteries, charging piles and electronic control system. For additional information, please visit EZGO's website at www.ezgotech.com.cn. Investors can visit the "Investor Relations" section of EZGO's website at www.ezgotech.com.cn/Investor.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate," or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the short-distance transportation solutions market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission (the "SEC"), including the Company's most recently filed Annual Report on Form 20-F and its subsequent filings. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Ascent Investor Relations LLC
Tina Xiao
Email: investors@ascent-ir.com
Phone: +1 646-932-7242

Cision View original content:https://www.prnewswire.com/news-releases/ezgo-announces-receipt-of-nasdaq-delisting-determination-and-plan-to-appeal-302103569.html

SOURCE EZGO Technologies Ltd.

FAQ

Why did EZGO receive a delisting determination notice from Nasdaq?

EZGO received the notice due to its Ordinary Shares closing bid price being below $1.00 for ten consecutive trading days.

What options is EZGO considering to regain compliance with Nasdaq's requirements?

EZGO is exploring options like a reverse stock split to regain compliance.

When does EZGO need to submit a request for a hearing before the Nasdaq Hearings Panel?

EZGO needs to submit the request on or before April 2, 2024, as per the Delisting Notice.

What is the potential impact of delisting on EZGO's shareholders?

Delisting could harm EZGO's reputation, reduce investor confidence, and lead to further stock price declines.

What was the closing bid price of EZGO's Ordinary Shares as of March 26, 2024?

The Ordinary Shares had a closing bid price of $0.10 or less for ten consecutive trading days as of that date.

EZGO Technologies Ltd.

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Motorcycle, Bicycle, and Parts Manufacturing
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United States of America
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