Solar module supplier Maxeon Solar Technologies is facing potential delisting from the Nasdaq Stock Market's global select market due to its sustained low stock price. The company's securities have had a closing bid price under $0.10 for ten consecutive trading days, prompting Nasdaq to issue a letter on September 17 announcing the decision.
Maxeon has initiated an appeals process by submitting a hearing request to Nasdaq's Listing Center, temporarily halting the delisting. A hearing, typically scheduled within 15 calendar days of the request, will determine the company's future on the exchange by October 5. As of September 23, Maxeon's stock was valued at $0.092, a significant 98.65% decline from the beginning of the year. The company has struggled to maintain a price above $1 since June, placing it at risk of delisting for an extended period of low stock value.
In response, Maxeon has planned a reverse stock split, approved by shareholders in August. The split will consolidate 100 shares into one, aimed at boosting the stock price above $1. This move is seen as essential to avoiding delisting, though the company continues to face significant challenges.
In addition to its financial difficulties, Maxeon has been involved in legal controversies. A class-action lawsuit brought by the Pomerantz law firm accuses the company's leadership of engaging in “unlawful business practices.” Furthermore, a Dutch court dismissed Maxeon's patent infringement case against competitor Aiko Solar, adding to the company's legal troubles.
Maxeon also delayed reporting its financial results for 2023, revealing a loss of $14.9 million in the first quarter. These combined factors have created an uphill battle for the solar module manufacturer, as it seeks to stabilize its financial standing and retain its listing on the Nasdaq.
Solar module supplier Maxeon Solar Technologies is facing potential delisting from the Nasdaq Stock Market's global select market due to its sustained low stock price. The company's securities have had a closing bid price under $0.10 for ten consecutive trading days, prompting Nasdaq to issue a letter on September 17 announcing the decision.
Maxeon has initiated an appeals process by submitting a hearing request to Nasdaq's Listing Center, temporarily halting the delisting. A hearing, typically scheduled within 15 calendar days of the request, will determine the company's future on the exchange by October 5. As of September 23, Maxeon's stock was valued at $0.092, a significant 98.65% decline from the beginning of the year. The company has struggled to maintain a price above $1 since June, placing it at risk of delisting for an extended period of low stock value.
In response, Maxeon has planned a reverse stock split, approved by shareholders in August. The split will consolidate 100 shares into one, aimed at boosting the stock price above $1. This move is seen as essential to avoiding delisting, though the company continues to face significant challenges.
In addition to its financial difficulties, Maxeon has been involved in legal controversies. A class-action lawsuit brought by the Pomerantz law firm accuses the company's leadership of engaging in “unlawful business practices.” Furthermore, a Dutch court dismissed Maxeon's patent infringement case against competitor Aiko Solar, adding to the company's legal troubles.
Maxeon also delayed reporting its financial results for 2023, revealing a loss of $14.9 million in the first quarter. These combined factors have created an uphill battle for the solar module manufacturer, as it seeks to stabilize its financial standing and retain its listing on the Nasdaq.
