KUALA LUMPUR - Graphjet Technology, listed as Nasdaq: GTI, disclosed on Tuesday that it has been notified of non-compliance with Nasdaq's Listing Rule due to a delay in filing its quarterly financial report. The company, which is known for its work in the graphite and graphene sectors, missed the deadline for its report for the quarter ending March 31, 2024.
According to the notice received from Nasdaq on May 30, 2024, Graphjet failed to meet the filing requirements stipulated under Nasdaq Listing Rule 5250(c)(1). Despite this setback, the notification does not presently affect the trading of Graphjet's shares on the Nasdaq Global Market.
Graphjet has been given 60 days, until July 29, 2024, to submit a plan to regain compliance. If the plan is approved, Nasdaq may extend the deadline for compliance up to 180 days from the original filing due date, or until November 18, 2024. Should Nasdaq reject the plan, Graphjet will have the opportunity to appeal before a Hearings Panel.
The company is actively working with its independent registered public accounting firm to finalize the Form 10-Q and address the delay. In the meantime, Graphjet has cautioned its investors and stakeholders that forward-looking statements made in the context of this delay are subject to various risks and uncertainties. These include potential changes in market demand and supply for its products, competition with better-established companies, and regulatory changes, among others.
Graphjet's future performance is also contingent on its ability to introduce new products and services, retain key personnel, and navigate the effects of global events such as the coronavirus pandemic on the industry.
InvestingPro Insights
As Graphjet Technology grapples with Nasdaq compliance, investors are closely monitoring the company's financial health and stock performance. With a market capitalization of $869.36 million, Graphjet's valuation reflects investor expectations for its future growth in the graphite and graphene sectors.
InvestingPro Data highlights a volatile period for Graphjet's stock, with a one-week price total return showing a modest recovery of 5.65%, suggesting some investor optimism in the short term. However, the longer-term view presents a starker picture, with a six-month price total return at a steep -47.54%, and the year-to-date return nearly mirroring this decline at -47.13%. These figures underscore the challenges Graphjet has faced over the past year, with the stock currently trading at only 43.0% of its 52-week high.
InvestingPro Tips indicate that investors should be aware of the company's upcoming earnings date on June 5, 2024, which could provide critical insights into Graphjet's financial trajectory and its plans to address the Nasdaq compliance issue. Additionally, with an average daily volume over the past three months of just 0.05 million, liquidity could be a concern for investors looking to trade in larger quantities.
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