Crypto mining {hardware} maker Canaan Inc., which has seen its shares down 63% within the final 12 months, has acquired a warning from Nasdaq to extend its share worth inside 180 days or face delisting from the main inventory market index.
Canaan mentioned in a assertion on Friday that the Nasdaq contacted the corporate on Wednesday to warn it was not in compliance with itemizing guidelines, as its shares’ closing bid worth had been under $1 for the final 30 enterprise days.
The Nasdaq gave Canaan 180 days, till July 13, to “regain compliance with the minimal bid worth requirement,” which requires its closing bid worth to hit at the very least $1 per share for no less than 10 buying and selling days in a row.
Shares in Canaan (CAN) final closed above $1 on Nov. 28. It comes as many crypto mining firms have moved some or all of their operations to offering computing energy for synthetic intelligence, decreasing their purchases of crypto mining rigs.
Canaan closed buying and selling on Friday at $0.79, down 3.8% on the day. Its shares haven’t traded above $3 since December 2024.
Canaan might get extra time to regain compliance
Canaan mentioned if it doesn’t enhance its share worth and regain compliance by July 13, Nasdaq workers might comply with grant it further time to convey its share worth up.
The corporate added that it might apply to the Nasdaq for an extension to regain compliance, which might see it comply with “effecting a reverse inventory cut up if needed,” the place it reduces the variety of excellent shares to spice up the value of these remaining.
If Nasdaq workers decide that Canaan can’t enhance its share worth, it is going to be topic to delisting, which has sometimes seen shares fall as they turn into tougher to purchase and promote as they transfer to over-the-counter markets.
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Canaan mentioned in October {that a} US-based firm had purchased 50,000 of its latest-generation “Avalon A15 Professional” mining rigs, its largest order in over three years, which despatched its inventory worth surging by 25%.
In December, Bitcoin (BTC) treasury firm Kindly MD acquired an identical delisting discover from the Nasdaq as its shares traded under $1 for 30 buying and selling days.
The Nasdaq gave Kindly MD (NAKA) till June to spice up its shares to keep away from delisting. Shares within the firm closed at $0.46 on Friday and final closed above $1 in late October.
In August, the Nasdaq delisted Windtree Therapeutics, a biotech firm that established a BNB treasury a month earlier, for failing to fulfill compliance necessities.
Shares within the firm fell 77% the day the Nasdaq introduced it could delist Windtree as traders rushed to exit the corporate earlier than it was faraway from the alternate.
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