LONDON – Crown LNG Holdings Limited, a company specializing in LNG infrastructure for extreme weather conditions, has been notified by of non-compliance with the exchange’s minimum bid price requirement. On September 3, 2024, Crown LNG received a Notification Letter from the Listings Qualifications Department of Nasdaq, indicating that the company’s common stock had not met the minimum closing bid price of $1.00 per share for 30 consecutive business days, as mandated by Nasdaq Listing Rule 5550(a)(2).
The notification does not immediately affect Crown LNG’s stock listing or trading on the Nasdaq Capital Market. The company has been granted a 180-day period, ending on March 3, 2025, to regain compliance. Compliance can be achieved if the stock’s closing bid price reaches $1.00 or higher for at least 10 consecutive business days within this period. Nasdaq may extend this 10-day period at its discretion.
Should Crown LNG fail to meet the requirement by March 3, 2025, it may qualify for an additional 180-day period to regain compliance, contingent on meeting all other initial listing standards for the Nasdaq Capital Market, except for the bid price. The company would need to notify Nasdaq of its intent to remedy the deficiency, which could include executing a reverse stock split. Any reverse stock split must be completed at least ten business days before the second compliance period ends.
Crown LNG is considering options to address the bid price rule, with a reverse stock split being one potential solution. However, there is no certainty that the company will achieve compliance within the given timeframe.
Crown LNG provides offshore LNG liquefaction and regasification terminal infrastructure solutions designed for harsh weather environments. The company’s focus is on delivering lower-carbon energy sources to markets that currently lack them, including projects related to green and blue hydrogen, ammonia, and power.
This news is based on a press release statement from Crown LNG Holdings Limited.
In other recent news, Catcha Investment Corp, a special purpose acquisition company, has extended the deadline for the merger with Crown LNG Holding AS. The new cutoff date is now July 12, 2024, pushed from the original deadline of June 28, 2024. This extension was agreed upon by both parties to allow more time for satisfying closing conditions, which include approval for listing the post-business combination public company common stock on a national securities exchange such as NASDAQ or NYSE American.
Crown LNG has the right to terminate the agreement if the necessary listing approval is not obtained by the new deadline. This strategic move is aimed at taking Crown public through a reverse merger with Catcha. The amendment to the agreement, detailed in the SEC filing on July 2, 2024, signifies both companies’ commitment to advance the merger, which was first announced on August 3, 2023.
The latest amendment signifies another step forward in the ongoing process to finalize the merger, which is subject to customary closing conditions and regulatory approvals. These are the recent developments within the company.
InvestingPro Insights
As Crown LNG Holdings Limited navigates through its Nasdaq compliance challenge, the latest metrics from InvestingPro paint a stark picture of the company’s recent market performance. With a market capitalization of just $20.67 million, the company’s financial footing appears precarious. This is further emphasized by a troubling P/E ratio of -0.34, suggesting that investors have significant concerns about the company’s profitability.
Recent price movements provide a clear indication of investor sentiment, as the stock’s one-week total return has plummeted by -15.65%, and the one-month total return has seen an even steeper decline of -36.18%. These figures are part of a longer-term trend, with the stock’s price total return over the last year showing a dramatic fall of -97.12%. Currently, the stock is trading near its 52-week low, at only 2.35% of its 52-week high, which aligns with its previous close price of $0.31.
InvestingPro Tips suggest that Crown LNG’s stock is in oversold territory, which could indicate a potential rebound if market conditions improve or if the company takes effective measures to address its compliance issues. Moreover, the stock’s high price volatility could signal opportunities for investors with an appetite for risk. However, the company’s weak gross profit margins are a concern that potential investors should not overlook.
For those interested in a deeper analysis, InvestingPro offers additional tips on Crown LNG Holdings Limited, which can be found at https://www.investing.com/pro/CGBS. These insights could prove invaluable in assessing the company’s prospects and the potential impact of its strategic decisions on its stock price.
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