Zentek Ltd. Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency
In This Article:
Guelph, Ontario--(Newsfile Corp. - September 13, 2024) - Zentek Ltd. (NASDAQ: ZTEK) (TSXV: ZEN) ("Zentek" or the "Company") announces that on September 11, 2024, it received a written notification (the "Notification Letter") from the Nasdaq Stock Market LLC ("Nasdaq") that the Company is not in compliance with Nasdaq Listing Rule 5550(a)(2), as the minimum bid price of the Company's common shares ("Shares") has been below US $1.00 per share for 31 consecutive business days.
The Notification Letter is only a notification of deficiency and not a notice of delisting. As such, the Notification Letter has no immediate effect on the listing or trading of the Company's Shares on the Nasdaq Capital Market under the symbol "ZTEK."
Nasdaq Listing Rules
Nasdaq Listing Rule 5550(a)(2) requires securities listed on the Nasdaq Capital Market to maintain a minimum bid price of US$1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company's Shares for the 30 consecutive business days from July 29, 2024, to September 10, 2024, the Company has not met the minimum bid price requirement.
In accordance with Nasdaq Listing Rule 5810(c)(3)(A), Zentek has a period of 180 calendar days, or until March 10, 2025, in which to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company's Shares must meet or exceed US $1.00 for at least ten consecutive business days during this 180-calendar day period. In the event Zentek does not regain compliance by March 10, 2025, the Company may be eligible for an additional 180 calendar day grace period if it meets the continued listing requirement for market value of publicly held shares (US $1 million) and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price and provides written notice to Nasdaq of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If it appears to Nasdaq that Zentek will not be able to cure the deficiency, or if Zentek is not otherwise eligible for additional time to regain compliance, Zentek's Shares will be subject to delisting by Nasdaq. Zentek may still appeal Nasdaq's determination to delist its Shares, and during any appeal process, Zentek's Shares would continue to trade on the Nasdaq Capital Market.
