CN ENERGY GROUP. INC. current report, Q3 FY2023

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Business Context and Reporting Period

CN Energy Group Inc., a foreign private issuer, filed Form 6-K for July 2023 on July 21, 2023. The filing reports a Nasdaq minimum bid price deficiency involving the Company’s Class A ordinary shares, which trade under the symbol CNEY on the Nasdaq Capital Market.

Financial Metrics

The filing does not provide revenue, profit, cash flow, margin, debt, liquidity, or other financial results.

Material Changes and Nasdaq Compliance

  • On January 13, 2023, Nasdaq notified the Company that its closing bid price had remained below $1.00 per share for 30 consecutive business days, violating Nasdaq Rule 5450(a)(1).
  • The initial 180-day compliance period expired on July 12, 2023, without the Company regaining compliance.
  • On July 13, 2023, Nasdaq granted an additional 180-day compliance period ending January 8, 2024.
  • To regain compliance, the closing bid price must reach at least $1.00 for a minimum of 10 consecutive business days, subject to Nasdaq’s rules and discretion.

Outlook, Risks, and Unusual Items

  • If the Company does not regain compliance by January 8, 2024, Nasdaq may issue a delisting notification.
  • The Company may appeal a delisting determination to a Nasdaq Hearings Panel, but there is no assurance that an appeal would be successful. The shares would remain listed while the appeal is pending.
  • The Company may consider available measures, including a reverse share split. Any reverse share split intended to regain compliance must be completed no later than 10 business days before the extended compliance deadline.
  • The notification has no immediate effect on the Company’s operations or the trading of its shares, which continue to trade on Nasdaq.

Key Facts for Investors to Verify

  • Whether CNEY’s closing bid price reached at least $1.00 for the required consecutive trading days before January 8, 2024.
  • Whether the Company implemented a reverse share split or another compliance measure.
  • Whether Nasdaq subsequently issued a delisting determination and whether the Company appealed it.
  • The filing does not provide financial results or quantify the potential financial impact of the listing deficiency.