CN Energy Faces Nasdaq Delisting After Stock Plunge

CNEY Stock Tumbles on Delisting Notice

CN Energy Group Inc. (NASDAQ:CNEY) shares fell sharply by 26.3% in after-hours trading following the disclosure of a delisting notice from Nasdaq. The action was triggered by the company's failure to maintain the required minimum bid price of $1.00 per share.

Overview of the Situation

The Nasdaq Listing Qualifications Staff issued the notice after CNEY's share price closed below the $1.00 threshold for 30 consecutive business days. According to the notice, the company is not eligible for a compliance extension due to conducting multiple reverse stock splits. The company executed a 1-for-30 split in January 2024 and a 1-for-25 split in May 2025, leading to a cumulative 1-for-750 ratio.

Company Response and Market Outlook

CN Energy has formally requested a hearing to appeal the determination, which automatically stays the trading suspension until a decision is made by the panel. The company intends to present a remediation plan during the appeal process. Its shares will continue to trade on The Nasdaq Capital Market during this period. The company also clarified that the notice does not affect its business operations or SEC reporting obligations.

Conclusion

The immediate future for CN Energy's listing status hinges on the outcome of its appeal. Investors will be closely watching for the hearing's decision and the details of the proposed remediation plan. The delisting notice remains a significant risk factor for the stock.

FAQ

Q: Why is CN Energy Group facing delisting from Nasdaq?
A: The company's stock price closed below the required minimum of $1.00 for 30 consecutive business days, violating Nasdaq's listing rules.

Q: Can CNEY shares still be traded?
A: Yes, the shares will continue to trade on Nasdaq while the company's appeal to the delisting determination is pending.

Source: Investing.com