Maxeon has admitted to receiving a delisting notice from the Nasdaq Stock Market
This is due to its securities not maintaining the minimum closing bid price of $1.00/share for 10 consecutive days
The management is exploring a reverse stock split to regain compliance with the Nasdaq listing rules
Singapore-headquartered solar PV manufacturer Maxeon Solar Technologies has received a Staff Determination Letter from the Nasdaq Stock Market for delisting its securities from The Nasdaq Global Select Market. It has filed for a hearing request that automatically stays any delisting action or filing till the hearing is completed.
Maxeon has received this delisting notice since its securities had a closing bid price of $0.10/share or less for 10 consecutive trading days. The Board of Directors of Maxeon is in the process of taking necessary actions to implement a reverse stock split. It believes this move will bring the company’s bid price of ordinary shares above the $1.00/share minimum bid price requirement under Nasdaq’s listing rules.
Maxeon had earlier complained of high interest rates and policy changes in the US for a difficult market environment for its business. It lost compliance with Nasdaq for not filing its 2024 annual report on time but regained when it filed Q4 2023 and Q1 2024 financials. China’s TCL TZE also stepped up with a controlling stake in the company with debt financing and equity investment (see Maxeon Regains Nasdaq Compliance With Q1 2024 Results).
The company recently released its Q2 2024 financial results reporting a gross loss of $7.78 million and a drop in revenues. It continues to foresee problems in H2 2024 as US Customs and Border Protection (CBP) detained its modules, cutting off the company’s access to its largest market (see Maxeon Withdraws FY 2024 Guidance After Gross Loss In Q2).
Meanwhile, it is embroiled in legal battles with a number of solar PV manufacturers that it has accused of patent infringement (see Maxeon Solar Technologies Launches Another Patent Lawsuit).