April 8, 2024
Orion Faces Nasdaq Delisting Notice Again
Company stock has closed below $1.00 mark for 31 consecutive trading days
In a recent development, Orion Energy Systems, Inc. has once again found itself in the crosshairs of Nasdaq's stringent listing requirements. On April 5, 2024, the Wisconsin-based lighting and electric vehicle charging company received a formal notification from Nasdaq, indicating that the company's stock price had fallen short of the minimum bid price requirement, thus jeopardizing its position on The Nasdaq Capital Market.
The heart of the issue lies with Nasdaq's Bid Price Rule, which mandates that listed entities must maintain a minimum bid price of $1.00 per share. Orion's recent trading activity, with the stock price lingering below this critical threshold for 31 consecutive days leading up to April 5, has triggered the non-compliance notice. As of the market close on April 5, 2024, the stock was trading at $0.90. Despite the current predicament, the company's stock, traded under the symbol "OESX," will continue to be listed and traded on Nasdaq, offering some time for remedial action.
Orion has been granted a 180-day grace period, extending up until October 2, 2024, to rectify the situation. Achieving compliance requires the stock's closing bid price to meet or exceed $1.00 for at least 10 consecutive business days within this timeframe. Should Orion fail to meet these conditions, it could be granted an additional period to regain compliance, provided certain criteria are met, including the potential execution of a reverse stock split.
Contextualizing the Challenge
This is not the first time Orion has navigated such treacherous waters. A similar notice was issued by Nasdaq on December 21, 2023, only for the company to announce its regained compliance by January 25, 2024. The fluctuating stock performance, with 42 trading days below the $1 threshold from November 9 to January 10, followed by a recovery above the threshold for 28 trading days, and then another 31-day dip, outlines a slight pattern of volatility that the company is seeking to stabilize.
Orion's management remains steadfast in their strategic approach, focusing on revenue growth and cost management. The company's recent performance, with a notable 28% year-over-year growth in the third quarter of fiscal 2024 and projections of achieving $90 to $95 million in revenue, highlights its potential for recovery. Furthermore, Orion is targeting a 10-15% revenue growth in fiscal 2025, an ambition that, if realized, could significantly bolster its standing with both investors and Nasdaq.
