Clean Energy Technologies, Inc. (Nasdaq:CETY), a company specializing in natural gas distribution, has received a notification from Nasdaq indicating non-compliance with the exchange's listing rules due to the company's failure to hold its annual meeting within the required timeframe.
According to InvestingPro data, the company faces multiple financial challenges, with an overall Financial Health score rated as WEAK and operating at a gross profit margin of just 6.27%. The notice, dated January 8, 2025, specifies that Clean Energy Technologies did not convene an annual meeting within 12 months following the end of its fiscal year on December 31, 2023, violating Nasdaq Listing Rules 5620(a) and 5810(c)(2)(G).
The Irvine, California-based company, which operates under the industrial classification of natural gas distribution, has been given 45 days, until February 24, 2025, to submit a plan to Nasdaq to regain compliance. The company's stock has declined significantly, showing a 65.9% drop over the past year, while its current ratio of 0.86 indicates short-term obligations exceed liquid assets.
Get deeper insights into CETY's financial health with InvestingPro, which offers 10+ additional key insights. If the plan is approved, Nasdaq may grant an extension of up to 180 days from the fiscal year-end, or until June 30, 2025, for the company to meet the listing requirements.
Clean Energy Technologies plans to submit a compliance plan detailing a timeline for preparing proxy statements and soliciting proxies leading to its annual shareholder meeting. However, there is no certainty that the company's plan will be accepted by Nasdaq. In the event of non-acceptance, the company's securities could face delisting, but Clean Energy Technologies would have the right to appeal the decision to a Nasdaq hearings panel.
The company's CEO, Kambiz Mahdi, is expected to sign the compliance report on behalf of Clean Energy Technologies. The firm has indicated its intention to organize its overdue annual meeting promptly in an effort to regain compliance with Nasdaq's listing requirements.
Despite these challenges, the company has shown remarkable revenue growth of 119.2% in the last twelve months, reaching $11.78 million. This information is based on a press release statement from the Securities and Exchange Commission filing. Unlock comprehensive financial analysis and real-time alerts with InvestingPro.
In other recent news, Clean Energy Technologies has secured a $5M equity line of credit agreement with Mast Hill Fund, L.P., bolstering its financial flexibility. The agreement allows the company to sell shares of its common stock at a price of 95% of the lowest trading price during a set pricing period. In addition, Clean Energy Technologies has partnered with METIS Power Inc. to develop advanced microgrid solutions for AI data centers and cryptocurrency mining operations, integrating CETY's waste heat recovery systems with METIS Power's energy storage and power generation technologies.
Furthermore, the company has received a non-compliance notice from Nasdaq due to its common stock trading below the $1.00 minimum bid price. Clean Energy Technologies has expressed its intent to evaluate all possible measures to regain compliance within the given 180 days. The company has also signed a Memorandum of Understanding with True North Computation, Inc., indicating its intention to venture into Cryptocurrency Mining and Artificial Intelligence Datacenter sectors.
Clean Energy Technologies' affiliate, Vermont Renewable Gas, LLC (VRG), has been awarded a $1 million grant from the United States Department of Agriculture (USDA) under the Rural Energy for America Program (REAP). This grant will support the completion of the VRG – Lyndon 2.2-megawatt renewable energy facility in Vermont, which will utilize Clean Energy Technologies' HTAP Biomass Reactor technology.
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