Heramba Electric plc Announces Receipt of Notice from Nasdaq Regarding the Minimum Market Value Requirement
Rhea-AI Summary
Heramba Electric plc (NASDAQ:PITA) has received a notification from Nasdaq indicating non-compliance with the minimum Market Value of Listed Securities (MVLS) requirement of $35 million. The company has been granted a 180-day compliance period until September 17, 2025 to regain compliance by maintaining an MVLS of $35 million or more for at least ten consecutive business days.
This notice follows earlier challenges, including a delinquency notification received on March 17, 2025, regarding non-compliance with the minimum bid price requirement of $1.00 per share. Additionally, the company's subsidiary Heramba filed for insolvency proceedings on January 30, 2025, following payment demands of approximately EUR 24,855,000 from KB GmbH related to a previous Share Purchase Agreement.
Positive
- 180-day grace period granted by Nasdaq to regain compliance
Negative
- Non-compliance with Nasdaq's minimum market value requirement of $35 million
- Stock trading below $1.00 for 30 consecutive business days
- Subsidiary Heramba filed for insolvency
- Outstanding payment demands of EUR 24.86 million
- Risk of potential Nasdaq delisting
News Market Reaction
On the day this news was published, PITA gained 19.28%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
DÜSSELDORF, GERMANY AND ATLANTA, GA / ACCESS Newswire / March 25, 2025 / As previously disclosed, and pursuant to the terms and conditions set forth in the Share Purchase Agreement, dated as of July 25 and 26, 2023, by and among Heramba GmbH ("Heramba"), Heramba Holdings, Inc. ("Heramba Holdings"), Knorr-Bremse Systeme für Schienenfahrzeuge GmbH ("KB GmbH") and Knorr-Brake Holding Corporation ("KB US"), as amended pursuant to the Amendment Agreement to Share Purchase Agreement, dated as of January 31, 2024, on February 6, 2024, (i) KB GmbH, as sole shareholder of Kiepe Electric GmbH, sold and transferred
As previously disclosed, and pursuant to the terms and conditions set forth in the Business Combination Agreement, dated as of October 2, 2023, by and among Project Energy Reimagined Acquisition Corp., Heramba Electric plc, Heramba Merger Corp., Heramba Limited and Heramba, effective as of July 26, 2024, the business combination contemplated by the Business Combination Agreement was consummated resulting in, among other matters, each of Heramba, Heramba Holdings, Kiepe GmbH and Kiepe US becoming direct or indirect subsidiaries of the Company.
As previously disclosed, on January 9, 2025, Heramba received letters (the "Demand Letters") from KB GmbH demanding payment of certain funds allegedly owed under the Share Purchase Agreement, totaling approximately EUR 24,855,000 in the aggregate plus applicable default interest (collectively, the "Demanded Amounts"). Heramba and the Company subsequently delivered response letters to contest the Demanded Amounts and propose further discussions; however, no resolution was reached.
As previously disclosed, on January 30, 2025, as a consequence of the outstanding Demanded Amounts and in accordance with certain obligations under applicable German insolvency law, the managing director of Heramba determined that Heramba was currently unable to pay its existing liabilities due and may also be overindebted. Following such determination and upon authorization by the Company as sole shareholder of Heramba, on January 30, 2025, the managing director of Heramba filed for the opening of ordinary insolvency proceedings over the assets of Heramba (the "Insolvency Filing") with the local court of Düsseldorf in Germany (the "Court").
As previously disclosed, on March 17, 2025, Heramba received a delinquency notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC, indicating that the Company is not currently in compliance with the minimum bid price requirement set forth in Nasdaq's Listing Rules for continued listing on the Nasdaq Capital Market as the closing bid price for the Company's ordinary shares was below
Heramba Electric plc (NASDAQ:PITA) ("Heramba Electric" or the "Company"), today announced that on March 19, 2025, it received a notification letter (the "Notice") from the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq"), indicating that the Company is currently not in compliance with the minimum Market Value of Listed Securities (MVLS) of
Nasdaq Listing Rule 5550(b)(2) MVLS requires listed securities to maintain a minimum Market Value of
The Rules provide the Company a compliance period of 180 calendar days in which to regain compliance. If at anytime during this compliance period the Company's MVLS closes at
In the event that the Company does not regain compliance by September 17, 2025, the Company may be eligible for additional time to regain compliance. If the Company cannot demonstrate compliance by the allotted compliance period(s), Nasdaq's staff will notify the Company that its ordinary shares are subject to delisting.
Contact information: Michele Molinari, CEO, michele@herambaelectric.com
SOURCE: Heramba Electric plc
View the original press release on ACCESS Newswire
FAQ
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When did Heramba Electric's (PITA) subsidiary file for insolvency?
