CN Energy Group faces Nasdaq scrutiny over share value in September 2024

On September 6, 2024, CN Energy Group, Inc. received a notification from Nasdaq's Listing Qualifications Department indicating non-compliance with the minimum Market Value of Publicly Held Shares (MVPHS) requirement. The company’s Class A Ordinary Shares had failed to meet the $1,000,000 MVPHS threshold for 30 consecutive business days prior to the notification. This situation arises under Nasdaq Listing Rule 5550(a)(5), which governs the continued listing of securities on the exchange. Despite this deficiency letter, the Class A Shares will continue to trade on Nasdaq under the ticker symbol 'CNEY' without immediate impact. The company has a compliance period of 180 calendar days, ending on March 5, 2025, to rectify the situation and regain compliance with the MVPHS requirement. If the shares meet the required market value for at least ten consecutive business days, Nasdaq will confirm compliance. Should the company fail to meet the requirements by the compliance date, it risks receiving a notification regarding potential delisting. Alternatively, CN Energy Group may consider transferring its securities to The Nasdaq Capital Market as a remedial action. The company plans to actively monitor the MVPHS of its Class A Shares and evaluate options to ensure compliance. This situation highlights the challenges faced by companies listed on stock exchanges, particularly in maintaining compliance with listing standards. The company’s future actions will be crucial in determining its continued presence on Nasdaq and its overall market performance.