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Securities law

Erayak Power Solution Group Inc. Receives Delisting Notification from Nasdaq

Strategic Insights

— 2 min read

Erayak Power Solution Group Inc., a leading manufacturer and exporter of power supply industry products, has received a notification from The Nasdaq Stock Market LLC stating that the company's securities will be delisted from the Nasdaq Global Market due to non-compliance with Nasdaq Listing Rules. The company's Class A ordinary shares have had a closing bid price of $0.10 or less for the last ten consecutive trading days, and they have also had a closing bid price of less than $1 per share over the previous 30 consecutive business days. Erayak Power Solution Group Inc. intends to request a hearing to appeal the delisting determination and is considering all potential options to regain compliance with the rules, including seeking shareholders' approval for a reverse stock split.

Key Takeaways:

  • Erayak Power Solution Group Inc. received a delisting notification from Nasdaq due to non-compliance with Listing Rules 5810(c)(3)(A) and 5450(a)(1).
  • The company's Class A ordinary shares have had a closing bid price of $0.10 or less for the last ten consecutive trading days and less than $1 per share over the previous 30 consecutive business days.
  • Erayak Power Solution Group Inc. intends to request a hearing to appeal the delisting determination and is considering a reverse stock split to regain compliance with the rules.
  • The company is provided 180 calendar days to regain compliance with Listing Rule 5450(a)(1), but the Nasdaq determined that the company's securities also had a closing bid price of $0.10 or less for the last ten consecutive trading days, subjecting the company to the Low Priced Stocks Rule.
  • Erayak Power Solution Group Inc. has 7 business days (until September 10, 2025) to request an appeal of the delisting determination to the Hearings Panel.
  • If Erayak Power Solution Group Inc. fails to request an appeal by September 10, 2025, trading of the company's securities will be suspended at the opening of business on September 12, 2025, and a Form 25-NSE will be filed with the SEC to remove the company's securities from listing and registration.

Statistics:

  • The company's Class A ordinary shares have had a closing bid price of $0.10 or less for the last ten consecutive trading days.
  • The company's Class A ordinary shares have had a closing bid price of less than $1 per share over the previous 30 consecutive business days.
  • The Nasdaq determined that the company's securities also had a closing bid price of $0.10 or less for the last ten consecutive trading days, subjecting the company to the Low Priced Stocks Rule.
  • The company has 180 calendar days to regain compliance with Listing Rule 5450(a)(1).
  • The company has 7 business days (until September 10, 2025) to request an appeal of the delisting determination to the Hearings Panel.
  • Trading of the company's securities will be suspended at the opening of business on September 12, 2025, if the company fails to request an appeal by September 10, 2025.

Sources:

  • Nasdaq Stock Market LLC
  • Erayak Power Solution Group Inc. (press release)

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