The Nasdaq Stock Market has moved to delist solar module supplier Maxeon from its global select market after the company’s securities had a closing bid price under US$0.10 for ten consecutive trading days.
Nasdaq sent Maxeon a letter announcing the decision last Tuesday (17 September), and on Friday, the company submitted a hearing request through the Nasdaq Listing Center. The start of this appeals process has suspended the company’s potential delisting until the hearing process is complete. According to the listing centre, these hearings typically take place within 15 calendar days of the hearing request, which means that Nasdaq will learn of its fate by Saturday 5 October.
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As of today (23 September), Maxeon’s stock price hit US$0.092, a 98.65% decline from the start of the year. A company can also face delisting from the market if its share price remains lower than US$1 for 30 consecutive trading days, and Maxeon’s stock price has not cleared US$1 since 27 June, showing that the company has endured stock price challenges for some months now.
The news follows a number of discouraging developments for the company, including failing to promptly supply its 2023 financial results to Nasdaq earlier this year. In its delayed results, the company announced it has lost US$14.9 million in the first quarter of this year.
In response to these challenges, Maxeon plans to complete a reverse stock split, which would combine the company’s shares into a smaller number of shares to increase their value. In August, Maxeon shareholders approved a resolution to consolidate every 100 shares in the company into one ordinary share each, which the company expects to push the share price over US$1.
The company has also been embroiled in a number of legal controversies, some stemming from its financial performance. The Pomerantz law firm has brought a class action lawsuit against the company regarding the potential of its leaders engaging in “unlawful business practices”, and a Dutch court has thrown out a lawsuit filed by the company, which alleged that Aiko Solar had infringed on one of its cell patents.
At this year’s Intersolar Europe event, held over the summer in Germany, Maxeon CEO Bill Mulligan addressed some of these issues, telling PV Tech Premium that “it’s cheating when you copy other people’s technology”.
