February 27, 2023
Energy Focus to Appeal Imminent Nasdaq Delisting
Company's stock has been trading under $1.00 since July 2022.
As previously reported, on August 23, 2022, Energy Focus, Inc. (Nasdaq: EFOI) received a written notification from the Listing Qualifications staff of The Nasdaq Stock Market (“Nasdaq”) that the company is not in compliance with the requirement to maintain a minimum closing bid price of $1.00 per share, as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Requirement”), because the closing bid price for Energy Focus' common stock was below the minimum $1.00 per share for 30 consecutive business days.
On February 21, 2023, Energy Focus received written notification from Nasdaq stating that the company had not regained compliance with the Rule and was ineligible to obtain a second 180 calendar day period to regain compliance because it did not meet the Nasdaq Capital Market’s minimum $5,000,000 Stockholders’ Equity initial listing requirement as of September 30, 2022. Pursuant to the Notification, the company’s common stock is subject to delisting from Nasdaq pending the company’s opportunity to request a hearing before the Nasdaq Hearings Panel.
Energy Focus stated that it intends to diligently pursue an appeal of the notification before the Nasdaq panel and regain compliance with the Rule. Under Nasdaq rules, the delisting of the company’s common stock will be stayed during the pendency of the appeal and during such time, the company’s common stock will continue to be listed on Nasdaq. If Energy Focus did not request a hearing before the Panel by February 28, 2023, the company’s common stock would be scheduled for delisting at the opening of business on March 2, 2023. On February 24, 2023, the company submitted its request for an appeal before the Panel. The request was signed by Energy Focus CEO, Lesley Matt.
There can be no assurance that such appeal will be successful or that Energy Focus will be able to regain compliance with the Rule or maintain compliance with other Nasdaq listing requirements. If the company’s appeal is denied or if it fails to regain compliance with Nasdaq’s continued listing standards during any period granted by the Panel, the company’s common stock will be subject to delisting from Nasdaq.
