Maxeon challenges Nasdaq delisting threat, plans reverse stock split

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From pv magazine Global

The Nasdaq Listing Qualifications Department said that it will delist Maxeon Solar Technologies from its top-tier Nasdaq Global Select Market. The Singapore-based PV module producer has responded by submitting a hearing request, which will automatically halt the delisting process until the hearing occurs.

According to a company statement, Nasdaq made the decision because Maxeon’s securities had a closing bid price of $0.10 or less for 10 consecutive trading days. However, the company said it believes that a reverse stock split announced in August could raise share prices above the threshold needed for the Global Select Market.

The company said that on Aug. 29, its shareholders approved consolidating every 100 existing ordinary shares into one share. The company’s board of directors is now taking steps to implement a reverse stock split, which it believes will raise the bid price above the $1.00 minimum requirement.

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

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

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