U Power Limited, a prominent player in the vehicle sourcing services industry with aspirations to become a leading EV battery power solution provider in China, announced that it received a notification letter from Nasdaq, indicating a potential delisting of its ordinary shares from The Nasdaq Capital Market.
U Power Stock Plummets Amid Nasdaq Delisting Concerns:
The stock of U Power Limited experienced a significant decline, opening at $0.08 on Wednesday morning, down from its previous close of $0.10. This downward trend was accompanied by higher trading volume, with 33.8 million shares exchanging hands by mid-day, surpassing the daily average of 23.3 million shares.
At the time of this publication, U Power Ltd stock (UCAR) has witnessed a decline.
U Power Ltd
Current Price: $0.07
Change : -0.03
Change (%): (-26.92%)
Volume: 33.8M
Source: Tomorrow Events Market Data
Nasdaq Delisting Notice to U Power:
On February 14, 2024, U Power received a notification letter from Nasdaq’s Listing Qualifications department, indicating a potential delisting of its ordinary shares from The Nasdaq Capital Market. This decision was based on the closing bid price of $0.10 or less for ten consecutive trading days, triggering a notice of delisting as per Nasdaq Listing Rule 5810(c)(3)(A)(iii) (the “Low Priced Stocks Rule”).
Failure to Meet Minimum Bid Price Rule:
In addition to the Low Priced Stocks Rule delisting notice, U Power Limited also failed to meet the requirement of Nasdaq Listing Rule 5550(a)(2), which mandates the closing bid price of ordinary shares to remain at $1.00 or higher. The company received a notice from Nasdaq regarding this requirement on January 19, 2024.
Implications and Company’s Response:
Unless U Power Limited requests an appeal of Nasdaq’s determination, trading of the company’s common stock will be suspended at the opening of business on February 23, 2024. However, the company plans to appeal Nasdaq’s determination to a Hearings Panel on February 21, 2024. A hearing request will temporarily stay the suspension and filing of Form 25-NSE pending the Panel’s decision.
Exploring Options for Compliance:
U Power Limited intends to closely monitor the closing bid price of its ordinary shares and may consider implementing available options, including a reverse share split, to regain compliance with Nasdaq Listing Rules for continued listing on Nasdaq. This strategic move underscores the company’s commitment to preserving its listing status and navigating through this challenging period.
The notification of potential delisting from Nasdaq poses a significant challenge for U Power Limited, triggering a decline in its stock value and heightened trading activity. As the company prepares to appeal Nasdaq’s determination and explores options for compliance, investors are advised to monitor developments closely and assess the company’s ability to address regulatory concerns and maintain its listing status on Nasdaq.
