Canaan Inc. is prone to a Nasdaq delisting because it has fallen beneath the trade’s minimal bid worth threshold for the second time over the previous 12 months. Shares for the Bitcoin mining {hardware} maker had been down over 63% throughout this era.
Abstract
- Canaan Inc. has acquired a second Nasdaq non-compliance discover in lower than a yr for buying and selling beneath the $1 minimal bid worth.
- The corporate has till July 13, 2026, to elevate its share worth above $1 for 10 consecutive buying and selling days or face potential delisting.
- Shares closed at $0.79 on Friday, down greater than 63% over the previous 12 months.
Canaan introduced the newest warning in a press release final week, confirming that it had acquired a proper discover from Nasdaq concerning its non-compliance with Nasdaq Itemizing Rule 5550(a)(2), which mandates that an organization’s inventory should keep a closing bid worth of no less than $1.00 for 30 consecutive enterprise days.
“The Firm intends to proceed monitoring the closing bid worth of its ADSs and can take all cheap measures with a view to regain compliance with the Nasdaq minimal bid worth requirement,” the agency stated, including that till then, Canaan shares will “proceed to be listed and commerce on the Nasdaq International Market through the compliance interval, unaffected by the receipt of the Discover from Nasdaq.”
Nasdaq has given the corporate 180 days, or till July 13, 2026, to regain compliance with the itemizing requirement, as is the norm. Throughout this era, Canaan must be certain that its share worth closes at or above $1 for 10 buying and selling days in a row, a degree it misplaced on Nov. 28.
If the corporate is unable to fulfill the requirement by July 13, 2026, Nasdaq might grant Canaan an extra 180-day extension to convey its share worth again above the minimal threshold, the announcement famous.
Canaan must take into account “effecting a reverse inventory cut up if crucial” to spice up its share worth. That may contain decreasing the variety of excellent shares with a view to enhance the per-share worth of the remaining inventory.
“As a part of its evaluate course of, the workers of Nasdaq will make a willpower of whether or not Nasdaq believes the Firm will have the ability to treatment this deficiency. Ought to the workers of Nasdaq conclude that the Firm will be unable to treatment the deficiency, or ought to the Firm decide to not submit a switch software or make the required illustration, Nasdaq will present discover that the Firm’s securities can be topic to delisting,” Canaan stated.
Canaan shares had been down over 3.8% as of Friday, buying and selling at $0.79, which implies the inventory should rise roughly 27% to fulfill the $1 threshold.
Again in Might, the corporate had acquired the same warning for falling out of compliance with the identical rule, however had managed to resolve the non-compliance subject inside the given timeframe. Canaan’s inventory worth surged almost 25% to hit a 9-month excessive of $2.05 in October after it disclosed its largest order in over three years for its Avalon A15 Professional mining rigs.
Bitcoin miners in peril
Bitcoin-mining corporations like Canaan have come underneath strain, particularly after the final Bitcoin halving, which decreased block rewards. On the similar time, Bitcoin’s underwhelming efficiency over the previous few months has pressured miners to function on extraordinarily skinny and even unfavorable margins.
Canaan just isn’t the one crypto-linked agency that has drawn Nasdaq scrutiny throughout this time. Final month, Kindly MD, a Bitcoin treasury-focused firm, acquired the same warning for buying and selling beneath the minimal bid worth requirement.
