Maxeon is challenging the threat of delisting from Nasdaq and plans a reverse stock split

The Nasdaq Listing Qualifications Department said it will delist Maxeon Solar Technologies from its top-tier Nasdaq Global Select Market. The Singapore-based PV module maker has responded by filing a hearing request, which will automatically halt the removal process until the hearing takes place.

According to a company statement, Nasdaq made this decision because Maxeon’s securities had a closing price of $0.10 or less for ten consecutive trading days. However, the company said it believes a reverse stock split announced in August could raise share prices above the threshold required for the Global Select Market.

The company said shareholders on August 29 had approved the consolidation of every 100 existing shares of common stock into one share. The company’s board of directors is now taking steps to implement a reverse stock split, which it says will increase the offering price above the minimum requirement of $1.00.

In a letter to investors accompanying its second-quarter 2024 results, CEO Bill Mulligan said Maxeon faces “significant market headwinds and uncertainties” due to competitive pressures, market demand and project delays, among other factors.

“In addition to these broader challenges, we recently experienced the first-ever Customs and Border Protection (CBP) apprehensions of our modules imported into the U.S. from our facilities in Mexico to enforce Uyghur Forced Labor Prevention Act (UFLPA) compliance. ) to assess,” Mulligan said. “They have effectively halted all our shipments to the US, a market that accounted for more than 60% of our second quarter sales, and are causing enormous pressure on the company’s revenue realization and cash flow.”