CHARLOTTE, NC—Cheetah Net Supply Chain Service Inc. (NASDAQ:CTNT), a wholesale motor vehicles and parts distributor, has been notified by Nasdaq of non-compliance with the exchange's minimum bid price requirement, potentially leading to delisting. The company's stock has closed below the $1.00 minimum bid price for 30 consecutive business days, triggering the notice.
The Nasdaq Listing Rule 5550(a)(2) stipulates that listed companies must maintain a minimum closing bid price of at least $1.00 per share. Despite the warning, Cheetah Net's stock will continue to trade on The Nasdaq Capital Market, with the ticker symbol CTNT, as it attempts to meet other listing standards.
To regain compliance, Cheetah Net has been granted a 180-day period, until January 7, 2025, during which the company's closing bid price must meet or exceed $1.00 for at least 10 consecutive business days. Nasdaq may exercise discretion to extend this 10-day period.
Should Cheetah Net fail to achieve compliance within this timeframe, it may be granted an additional 180 days if it meets the market value of publicly held shares and other initial listing standards, except for the bid price. The company would need to notify Nasdaq of its intent to correct the deficiency, potentially through a reverse stock split.
Cheetah Net has stated its intention to monitor its stock's performance closely and is considering strategies, including a reverse stock split, to rectify the bid price shortfall and maintain its listing status.
This development is based on an 8-K filing with the Securities and Exchange Commission, which serves as the source of this information.
In other recent news, Cheetah Net Supply Chain Service Inc. has announced a follow-on public offering of 13,210,000 shares of Class A common stock, priced at $0.62 per share. This move is expected to generate gross proceeds of approximately $8,190,200 before accounting for placement agent fees and other related expenses. The offering, handled by AC Sunshine Securities LLC, is set to close soon, subject to standard closing conditions.
The company has expressed intentions to utilize the net proceeds from this offering to bolster its working capital and further enhance its warehousing and logistics services. This strategy is part of Cheetah Net's broader efforts to expand its business operations. It's important to note that these are the latest developments in the company's ongoing business activities. Analysts will be watching closely to see how these actions impact the company's future operations.
InvestingPro Insights
In light of Cheetah Net Supply Chain Service Inc.'s (NASDAQ:CTNT) recent notification of non-compliance with Nasdaq's minimum bid price requirement, a glance at the latest InvestingPro data and tips can provide investors with a deeper understanding of the company's financial health and stock performance.
According to InvestingPro data, Cheetah Net's market capitalization stands at a modest $16.11 million, reflecting the scale of the company within its sector. The company's price-to-earnings (P/E) ratio is currently negative at -37.28, indicating that it is not profitable as of the last twelve months leading up to Q1 2024. Additionally, the stock has experienced a significant return over the last week, with an 8.72% price total return, which may be a positive sign for investors looking for short-term gains.
However, there is a stark contrast when looking at longer time frames, where the price has fallen significantly, with a -92.79% one-year price total return as of the same date. This is in line with one of the InvestingPro Tips that points out the stock's poor performance over the last decade. Furthermore, the company's revenue has declined by -43.65% in the last twelve months leading up to Q1 2024, which aligns with analysts' expectations of a sales decline in the current year.
For investors considering a deeper dive into Cheetah Net, there are additional InvestingPro Tips available that could provide further insights into the company's financials and stock trends. To explore these tips and gain a more comprehensive understanding, visit https://www.investing.com/pro/CTNT and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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