Phoenix Motor Inc. Appeals Nasdaq Delisting Determination
Rhea-AI Summary
Phoenix Motor Inc. has formally appealed Nasdaq's delisting determination following the trading halt of its stock (PEV) on April 15, 2025. The suspension resulted from non-compliance with the minimum bid price requirement and failure to hold a 2024 annual shareholder's meeting.
The company has requested a hearing before the Nasdaq Hearings Panel and initiated transition to over-the-counter (OTC) trading. To address compliance issues, the Board is recommending shareholders approve a reverse stock split with a ratio range of 1-for-1.5 to 1-for-5. Additionally, the company has scheduled its annual shareholder meeting for April 18, 2025, at its Anaheim headquarters.
Positive
- Company actively appealing Nasdaq delisting determination
- Transitioning to OTC markets to maintain trading availability
- Scheduled shareholder meeting to resolve governance requirements
Negative
- Trading of PEV stock suspended on Nasdaq due to compliance failures
- Non-compliance with minimum bid price requirement
- Failed to hold required annual shareholder meeting in 2024
- Potential dilution risk from proposed reverse stock split
Insights
Phoenix Motor's Nasdaq delisting appeal represents a critical regulatory challenge with significant implications for shareholders. The company faces a double compliance problem: failure to maintain the
The trading suspension effective April 15 forces an immediate transition to OTC markets, which typically results in reduced liquidity, wider bid-ask spreads, and diminished institutional investor interest. For a micro-cap company with just
The proposed reverse split ratio range (1-for-1.5 to 1-for-5) appears inadequate given the
While management is taking procedural steps—scheduling the shareholder meeting for April 18 and pursuing the appeal process—these actions come after the suspension has already taken effect, suggesting a reactive rather than proactive approach to exchange requirements.
The combination of the trading venue downgrade, compliance failures, and the company's market capitalization creates substantial obstacles for maintaining shareholder value, regardless of operational performance in its electric vehicle business.
ANAHEIM, CA / ACCESS Newswire / April 15, 2025 / Phoenix Motor Inc. (the "Company"), a leading manufacturer of heavy-duty transit buses and electrification solutions provider for medium-duty vehicles, today announced that it has formally appealed the Nasdaq delisting determination and is taking proactive steps to protect shareholder value following the trading halt of its common stock (previously traded under: PEV).
Hearing Request and Continued OTC Trading
As previously disclosed, Nasdaq suspended trading of the Company's common stock effective today, April 15, 2025, due to non-compliance with the minimum bid price requirement and the Company's failure to hold an annual shareholder's meeting in 2024. The Company has:
Timely requested a hearing before the Nasdaq Hearings Panel to appeal the delisting decision.
Initiated the transition to over-the-counter (OTC) trading. The Company will provide updates regarding OTC market availability.
" We respect Nasdaq's process and are pursuing all avenues to regain compliance through the appeal process," said Xiaofeng Peng, CEO of Phoenix Motor Inc. "Our operations and growth strategy remain unchanged, and we are committed to maintaining transparency with our investors during this transition."
Progress on Compliance Measures
The Company is advancing its plan to meet Nasdaq's requirements, including:
Reverse Stock Split Approval - The Board continues to recommend shareholders approve a reverse stock split (ratio range: 1-for-1.5 to 1-for-5) to address the bid price deficiency.
Imminent Annual Meeting - The shareholder meeting will proceed as scheduled on April 18, 2025, at the Company's headquarters (1500 Lakeview Loop, Anaheim, CA), to resolve corporate governance requirements.
About Phoenix Motor Inc.
Phoenix Motor, a pioneer in the electric vehicle ("EV") industry, designs, builds, and integrates electric drive systems and manufactures heavy duty transit buses and medium and light duty commercial EVs. Phoenix operates two primary brands, "Phoenix", which is focused on commercial products including heavy and medium duty EVs (transit buses, shuttle buses, school buses and delivery trucks, among others) and "EdisonFuture", which intends to offer light-duty EVs. Phoenix endeavors to be a leading designer, developer and manufacturer of electric vehicles and electric vehicle technologies. To learn more, please visit: phoenixev.ai.
Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's current expectations and speak only as of the date of this release. Actual results may differ materially from the Company's current expectations depending upon a number of factors. Except as required by law, the Company does not undertake any responsibility to revise or update any forward-looking statements.
Contact: IR@phoenixev.ai
Dave Gentry, CEO RedChip Companies, Inc.1-407-644-4256 PEV@redchip.com
SOURCE: Phoenix Motor Inc.
View the original press release on ACCESS Newswire
FAQ
Why was Phoenix Motor (PEV) stock suspended from Nasdaq trading on April 15, 2025?
What is the proposed reverse stock split ratio for Phoenix Motor (PEV)?
When is Phoenix Motor's (PEV) annual shareholder meeting scheduled for 2025?
What steps is Phoenix Motor (PEV) taking to maintain trading availability after Nasdaq suspension?
