ParaZero Regains Compliance with Nasdaq Minimum Bid Price Rule

Rhea-AI Summary

ParaZero Technologies (Nasdaq: PRZO), an aerospace company specializing in safety systems for defense and commercial drones and urban air mobility aircraft, has announced regaining compliance with Nasdaq's minimum bid price requirement. The company received confirmation from Nasdaq that it has met the listing standard by maintaining a closing bid price of $1.00 or higher for 10 consecutive trading days from November 29 through December 12, 2024. This resolution ensures ParaZero's continued listing on the Nasdaq Capital Market, with Nasdaq considering the previous bid price deficiency matter closed.

Positive

• Regained Nasdaq listing compliance, eliminating delisting risk
• Maintained share price above $1.00 for required period
• Continues trading on Nasdaq Capital Market without restrictions

Negative

• Previous trading below $1.00 minimum bid requirement indicates recent stock price weakness

Insights

Financial Analyst

This compliance achievement with Nasdaq's minimum bid price requirement is a critical development for ParaZero, removing a significant near-term risk of delisting. While this news stabilizes the company's listing status, it's important to note that maintaining compliance remains an ongoing challenge for micro-cap companies like ParaZero, with a market cap of only $15.5 million. The stock's ability to maintain a $1.00 bid price for 10 consecutive trading days suggests some market confidence, but investors should monitor trading volumes and price stability closely. This regulatory compliance doesn't fundamentally change the company's business prospects or financial position, though it does eliminate a major market accessibility concern.

Tel Aviv, Israel, Dec. 16, 2024 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (Nasdaq: PRZO) (the "Company” or “ParaZero”), an aerospace company focused on safety systems for defense and commercial drones and urban air mobility aircraft, today announced that it has received a written notice from Nasdaq Stock Market LLC (“Nasdaq”)informing the Company that it has regained compliance with the minimum bid price requirement for continued listing set forth in Nasdaq Listing Rule 5550(a)(2). ParaZero is now in compliance with all applicable listing standards and its ordinary shares will continue to be listed and traded on the Nasdaq Capital Market.

To regain compliance with the minimum bid price requirement, the Company was required to maintain a minimum closing bid price of $1.00 or more for at least 10 consecutive trading days. From November 29, 2024 through December 12, 2024, a period of 10 consecutive trading days, the closing bid price of the Company’s ordinary shares was greater than $1.00 per share. Accordingly, the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2) and Nasdaq considers the prior bid price deficiency matter now closed.

About ParaZero Technologies

ParaZero (Nasdaq: PRZO) is a leading developer of autonomous parachute safety systems technologies for commercial and military platforms as well as for urban air mobility (UAM) aircraft. Started in 2014 by a passionate group of aviation professionals and drone industry veterans, ParaZero develops and manufactures smart, autonomous parachute safety systems designed to enable safe flight operations over populated areas and beyond-visual-line-of-sight (BVLOS) as well as for various military applications including Counter UAS. For more information about ParaZero, please visit https://parazero.com/

Forward- looking statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report on From 20-F for the year ended December 31, 2023. Forward- looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. ParaZero is not responsible for the content of third-party websites.

Investor Relations Contact:

Michal Efraty
Investor Relations
michal@efraty.com

FAQ

How did ParaZero (PRZO) regain Nasdaq compliance in December 2024?

ParaZero regained compliance by maintaining a closing bid price above $1.00 for 10 consecutive trading days from November 29 to December 12, 2024, meeting Nasdaq's minimum bid price requirement.

What was the minimum share price requirement for PRZO to maintain Nasdaq listing?

PRZO needed to maintain a minimum closing bid price of $1.00 or more for at least 10 consecutive trading days to comply with Nasdaq Listing Rule 5550(a)(2).

What is the impact of Nasdaq compliance on PRZO shareholders?

Regaining compliance ensures PRZO continues trading on the Nasdaq Capital Market, maintaining better visibility and liquidity for shareholders while eliminating delisting risk.

When did PRZO meet the Nasdaq minimum bid price requirement?

PRZO met the requirement during the period from November 29, 2024, through December 12, 2024, maintaining the required share price for 10 consecutive trading days.