Battery maker A123 faces possible delisting by Nasdaq
Waltham lithium-ion battery maker A123 Systems has been warned that the struggling firm’s low share price could get it removed from the Nasdaq stock market or moved to a smaller exchange, the company said in a regulatory filing.
On Wednesday, A123’s stock closed at 38 cents -- a far fall for a company whose stock once traded at over $25 a share.
Companies must maintain a share price of at least $1 to be listed on the Nasdaq. If a stock falls below that minimum for more than 30 consecutive business days -- as A123’s has -- a de-listing warning is issued. A123 has until mid-February to raise its share price.
The company, which makes batteries for electric and hybrid vehicles and other applications, has struggled as the electric car market in the US has failed to materialize as quickly as expected. A123 recently signed a deal with a Chinese conglomerate, which plans to invest up to $465 million and help the battery maker expand into China’s market.
If A123’s stock fails to rise, the company will have the chance to be listed on the Nasdaq Capital Market.Erin Ailworth can be reached at firstname.lastname@example.org. Follow her on Twitter @ailworth.