The Nasdaq Stock Market has initiated the delisting process for Maxeon, a solar module supplier, after its stock closed below US$0.10 for ten consecutive trading days. The company received notice of this decision on September 17 and promptly submitted a hearing request on September 20. This appeal has temporarily paused the delisting process, with a decision anticipated by October 5.
As of September 23, Maxeon's stock was priced at US$0.092, representing a 98.65% drop since the beginning of the year. The company also faces potential delisting if its stock price remains below US$1 for 30 consecutive trading days; it has not surpassed this threshold since June 27, highlighting ongoing challenges.
The delisting news follows several setbacks for Maxeon, including delays in reporting its 2023 financial results to Nasdaq. When the company finally released its delayed results, it revealed a loss of US$14.9 million in the first quarter.
In light of these issues, Maxeon plans to execute a reverse stock split, consolidating shares to boost their value. In August, shareholders approved a resolution to convert every 100 shares into one ordinary share, aiming to raise the stock price above US$1.
Maxeon is also involved in various legal disputes, including a class action lawsuit filed by the Pomerantz law firm, which alleges that the company's leadership engaged in “unlawful business practices.” Additionally, a Dutch court dismissed a lawsuit from Maxeon claiming that Aiko Solar had infringed one of its cell patents.
At this year's Intersolar Europe event in Germany, Maxeon CEO Bill Mulligan addressed these challenges, stating, “It’s cheating when you copy other people’s technology.”
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