Plug Power again faces Nasdaq delisting
Shares fail to reach $1; company planning appeal
LATHAM Plug Power learned last week that it had again failed to regain compliance with Nasdaq’s minimum bid price rule. Company officials said in a news release they would appeal that determination in order to avoid delisting from the stock exchange.
The Latham fuel cell maker received the determination letter Oct. 8 from the staff of the Nasdaq Stock Market, stating it had not regained compliance after its common stock failed to maintain a minimum closing bid price of $1 per share over 10 consecutive business days.
Plug Power first fell out of compliance last October and was given six months to get the price back up. When it failed to do that, it was given a six-month extension.
One year later, the company that develops modern fuel-cell technology has still failed to raise its minimum closing bid price. In the past year, Plug Power common stock hasn’t had a closing bid price higher than 85 cents.
If Plug Power chose not to appeal the determination, its common stock would be suspended at the opening of trading on Thursday. Nasdaq would also take action to remove the company’s common stock from listing and registration on the Nasdaq Stock Market.
Plug Power officials have said they will appeal the determination and submit a plan to regain compliance within a specific time period. The appeal will stay the suspension and delisting of its securities until a hearing process concludes and the Nasdaq listing qualifications hearing panel has issued a written decision.
The company plans to request a hearing before the panel, in which it will present a plan for achieving compliance with the applicable listing requirements.
If the panel doesn’t grant another extension, Plug Power expects to be given a window of time to execute a reverse stock split. Shareholders voted in June to give the Board of Directors the authority to execute such a split in order to remain listed. The move would reduce the number of shares each stockholder has, creating a proportional increase in the share price. New shares would be issued for every 10 to 25 old shares.