SHENZHEN, China - BAIYU Holdings, Inc. (NASDAQ: BYU), a prominent B2B e-commerce and supply chain service provider, has filed an appeal against the Nasdaq's decision to delist the company's securities. The appeal, lodged with a Nasdaq Hearings Panel, contests the Nasdaq Staff's determination based on concerns over the company's disclosures and due diligence regarding recent business developments.
On October 4, BAIYU received a notification from Nasdaq, prompting the company to retain Jacob Frenkel of Dickinson Wright, PLLC, as lead counsel for the appeal process. The delisting concerns arose from BAIYU's announcements about a contract for electric lithium batteries and a letter of intent to build electric vehicle charging stations in Cairo, Egypt, which led to unusual trading activity in BAIYU's stock.
Renmei Ouyang, CEO of BAIYU, stated that the management's efforts to secure significant opportunities in clean energy projects, including battery-charging stations, were not fully appreciated by Nasdaq Staff. The company asserts that there has been no promotional activity regarding its stock in 2023 and 2024 and that no officers or directors have traded BAIYU stock during the recent months.
The company continues to progress in its contract for lithium batteries and aims to finalize a definitive agreement for the charging stations in Cairo. BAIYU believes these projects are critical to its expansion into clean energy and expects that these efforts will be recognized favorably during the appeal.
While the appeal is pending, BAIYU's common stock will remain listed on Nasdaq. However, the company acknowledges that the outcome of the appeal cannot be predicted. BAIYU emphasizes that the delisting notice does not impact its business operations, financial position, or obligations to partners.
BAIYU's business includes trading non-ferrous metal products and offering supply chain services. It is currently expanding into clean energy and related sectors. The company remains current with its SEC filings and is committed to maintaining its securities registration.
This news is based on a press release statement from BAIYU Holdings, Inc. For further information about BAIYU's initiatives and developments, the company directs interested parties to its website.
In other recent news, BAIYU Holdings has been at the center of several key developments. The company recently announced a partnership with Adler International Ltd. to develop charging and swapping stations in Cairo, Egypt, a project fully funded by the Egyptian government, with an investment of $547.5 million. BAIYU Holdings also secured a $60 million contract with Feng's Auto Parts Inc. for the supply of electric lithium batteries, marking a significant move into the U.S. market.
Further, BAIYU has agreed to acquire Shenzhen Jintongyuan Energy Storage Technology Co., Ltd., a significant player in the energy storage battery sector in China, for approximately $105 million. The company also formed a strategic partnership with U.S.-based Electra New Energy Vehicle, Inc., planning a majority stake acquisition and an investment of up to $3 million over the next three years.
In governance news, Rongrong (Rita) Jiang has been appointed as a new independent director, following the resignation of Xiangjun Wang. Donghong Xiong, a current director, has assumed the role of Chairman of the Nominating and Governance Committee.
However, trading of BAIYU Holdings has been halted pending a request for additional information from the company by Nasdaq and an inquiry by the Securities and Exchange Commission (SEC). These are all recent developments impacting BAIYU Holdings.
InvestingPro Insights
As BAIYU Holdings, Inc. (NASDAQ: BYU) navigates its appeal against Nasdaq's delisting decision, InvestingPro data provides additional context to the company's financial situation.
The company's market capitalization stands at $50.44 million, reflecting its current position as a small-cap stock. This valuation comes amid significant challenges, as evidenced by the stock's performance. InvestingPro data shows that BYU's share price has fallen dramatically, with a one-year price total return of -84.35% as of the latest data. This decline aligns with the company's current struggles and the potential delisting threat.
Despite these challenges, InvestingPro Tips highlight some intriguing aspects of BYU's valuation. The stock is trading at a low Price / Book multiple of 0.12, suggesting it may be undervalued relative to its book value. Additionally, BYU's P/E ratio stands at 6.14, which could indicate an attractive valuation if the company can overcome its current obstacles.
However, investors should note that BYU is quickly burning through cash, according to another InvestingPro Tip. This is particularly relevant given the company's expansion plans into clean energy projects and the ongoing legal challenges.
For readers interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for BYU, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.