U Power Limited (NASDAQ: UCAR) stock nosedived on Wednesday after receiving a Nasdaq Delisting Notification. The company plans to appeal the decision before a hearing panel on February 21, 2024.
U Power (UCAR) is seeing the threat of delisting from the Nasdaq Capital Market. The company received a notification from Nasdaq on February 14, 2024, indicating that its ordinary shares have fallen below the minimum bid price requirement.
The Nasdaq notice highlighted that U Power’s shares concluded at a bid price of $0.10 or lower for ten consecutive trading days as of February 13, 2024. This breach falls under the Nasdaq Listing Rule 5810(c)(3)(A)(iii), commonly known as the Low Priced Stocks Rule. Moreover, Nasdaq found the company non-compliant with Listing Rule 5550(a)(2), which mandates maintaining a minimum bid price of $1.00. U Power received a notice regarding this issue on January 19, 2024.
U Power plans to contest the delisting notice by appealing to a Nasdaq Hearings Panel scheduled for Wednesday. This appeal aims to temporarily halt the trading suspension and the submission of Form 25-NSE to the SEC, which would officially delist U Power from Nasdaq.
U Power is actively considering a reverse share split, among other options, to meet Nasdaq’s listing requirements while closely monitoring its share price.
U Power (NASDAQ: UCAR) Stock Performance
UCAR stock plummeted 27.31% to close at $0.07 on Wednesday. The traders had exchanged hands with 45,317,963 (45.31 million) shares compared to the average daily trading volume of 24.82 million.
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