Join our daily newsletter At The Bell to receive exclusive market insights
Australian-listed Novonix Ltd (ASX:NVX) has been slapped with a warning from the NASDAQ on Wall Street that its depositary receipts, trading now under US$1 each for over 10 business days in a row, fall foul of NASDAQ rules.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
Novonix now has 180 days to turn the ship around, more or less, lest the company’s ADR’s be de-listed off the NASDAQ (though that wouldn’t hurt its ASX ordinary share).
The graphite anode player – a notoriously hard product to develop (and opaque graphite benchmarks don’t help) – has long focused on the battery thematic. In late CY21, the share price sensationally hit well over $10/sh; that was short-lived.
By late Feb CY22, they were $5/sh, and then by January CY23, they were back down below $2/sh. Since then, the company has failed to really pop, let alone recapture valuations anywhere near its early-COVID levels.
Today, it’s around 30cps. And that’s bad news for the company’s U.S.-listed ADRs. Basically, they’re too cheap for Wall Street.
“In accordance with Nasdaq Listing Rules, the Company has 180 calendar days from the date of the notice to regain compliance (compliance period),” NVX wrote on Wednesday.
“To regain compliance, the closing bid price of the Company’s ADR’s must be at least US$1.00 per ADR for a minimum of 10 consecutive business days during the compliance period.”
NVX last traded at 26.5cps.
Join the discussion: See what HotCopper users are saying about Novonix Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
-1200x645-380x200.jpg)