SINGAPORE - JE Cleantech Holdings Limited (NASDAQ:JCSE), a company specializing in precision cleaning and cleantech equipment, announced Monday that it has been granted a temporary exception by the Nasdaq Stock Market LLC to regain compliance with the Exchange's minimum bid price requirement.
The Listing Qualifications Department of Nasdaq issued an Exception Letter to JE Cleantech, allowing the company until December 6, 2024, to execute a reverse stock split and demonstrate compliance with the Bid Price Rule. This rule mandates that the company's shares maintain a minimum closing bid price of $1 for at least ten consecutive business days.
To adhere to the conditions set by Nasdaq, JE Cleantech is required to achieve shareholder approval for the reverse stock split by November 14, 2024, and subsequently effectuate the split by November 21, 2024. The company must then prove its compliance by showing a closing bid price of $1 or more per share for a minimum of ten consecutive trading sessions before the December deadline.
The Nasdaq Panel has reserved the right to reassess the terms of this exception based on any significant changes that might impact the company's listing status. JE Cleantech is obligated to promptly inform the Panel of any events that could affect its ability to meet the terms of the granted exception.
CEO and Founder of JE Cleantech, Ms. Hong Bee Yin, expressed her satisfaction with the Panel's decision, emphasizing the importance of maintaining the company's Nasdaq listing for its shareholders. She affirmed the company's intention to meet the milestones set by the Panel.
JE Cleantech, headquartered in Singapore, operates through its subsidiary JCS-Echigo Pte Ltd, which offers various industrial cleaning systems primarily in Singapore and Malaysia. The company's cleaning systems are designed to effectively remove contaminants with advanced features such as particle filtration and ultrasonic rinses. Moreover, JE Cleantech has been providing centralized dishwashing and general cleaning services through its subsidiary, Hygieia Warewashing Pte Ltd, since 2013.
The information in this article is based on a press release statement from JE Cleantech Holdings Limited.
In other recent news, JE Cleantech Holdings Limited, a Singapore-based manufacturer of cleaning systems, is facing potential delisting from the Nasdaq Capital Market due to non-compliance with the minimum bid price requirement.
The Nasdaq Listing Qualifications Department notified JE Cleantech that its share price failed to meet the $1 threshold consistently over a 30-day period. Despite being given until June 11, 2024, to address this issue, the company was unable to regain compliance within the allotted time.
The Nasdaq staff expressed doubts about JE Cleantech's ability to correct the deficiency, noting that the company's shares had only closed above $1 on 22 occasions since September 22, 2022. Unless the company successfully appeals the decision, its shares will be suspended from trading at the start of business on June 26, 2024. However, JE Cleantech has already requested an oral hearing for the appeal, for which it paid a $20,000 fee.
CEO and Founder of JE Cleantech, Ms. HONG Bee Yin, acknowledged the importance of maintaining Nasdaq listing for shareholder value and pledged improved performance to meet the continued listing standards. These are the recent developments for JE Cleantech.
InvestingPro Insights
In light of JE Cleantech Holdings Limited's (NASDAQ:JCSE) recent announcement regarding its compliance efforts with Nasdaq's minimum bid price requirement, several metrics and insights from InvestingPro may offer investors a clearer picture of the company's financial landscape. Notably, JCSE is currently trading at a low Price / Book multiple of 0.28, suggesting that the market may be undervaluing the company's assets relative to its share price. This could be an attractive point for value-oriented investors.
Despite recent challenges, JE Cleantech has maintained a strong free cash flow yield, as indicated by its adjusted P/E ratio over the last twelve months as of Q4 2023, which stands at 9.07. This metric can be appealing to those looking for companies with potential for cash generation relative to their market valuation.
However, it is important to note that JCSE's stock has experienced significant price volatility, with a one-year price total return as of 2024 showing a decline of 61.87%. This level of volatility and performance may warrant caution among potential investors.
InvestingPro Tips also reveal that while the stock has fared poorly over the last month and year, it remains profitable over the last twelve months and has liquid assets that exceed short-term obligations. For investors considering JCSE, these factors could be critical in assessing the company's short-term financial health and long-term potential.
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