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CENN Stock Alert: Will Cenntro Electric Get Delisted?


  • Cenntro Electric (CENN) stock is trending after the EV maker announced that it had failed to comply with one of Nasdaq’s rules.
  • CENN stock failed to receive a “closing bid price” of at least $1 per share for 30 consecutive business days.
  • The EV maker is likely to respond by carrying out a reverse split of its shares.
CENN stock - CENN Stock Alert: Will Cenntro Electric Get Delisted?

Source: VanderWolf Images / Shutterstock.com

Electric vehicle maker Cenntro Electric (NASDAQ:CENN) is in the spotlight today. The automaker reported that Nasdaq informed it that it had broken one of the exchange’s rules. Specifically, CENN stock failed to receive a “closing bid price” of at least $1 per share for 30 consecutive business days.

New Jersey-based Cenntro makes “light and medium-duty commercial [electric] vehicles” for companies.

Cenntro noted that it has six months to comply with Nasdaq’s rule. Many other companies whose stock prices have dropped below $1 for an extended period have adhered to the rule by carrying out a reverse split of their stocks. Reverse splits reduce the total number of shares outstanding, causing the price of each share to surge.

Alternatively, in a scenario that’s significantly less likely to unfold, Cenntro can allow its shares to be delisted from the Nasdaq and move them to an over-the-counter exchange.

The Bottom Line on CENN Stock

Cenntro was acquired by Naked Brand, “a struggling clothing and intimate apparel retailer” in November 2021. Naked, which had formerly been a meme stock, subsequently changed its name to Cenntro, and carried out a 1-for-15 reverse stock split.

Cenntro currently markets several electric vans, an electric “off-road utility task vehicle,” and a small delivery truck that’s designed for urban areas.

On Dec. 21, CENN announced that it had begun shipping two of its EVs to customers in Europe, sparking a big rally in CENN stock. The company plans to exhibit a hydrogen-fueled semi-tractor early next month.

Last quarter, Cenntro reported revenue of $2.5 million, gross profit of $300,000, and an operating loss of $12.1 million.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

Article printed from InvestorPlace Media, https://investorplace.com/2022/12/cenn-stock-alert-will-cenntro-electric-get-delisted/.

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