Super Micro Computer (SMCI) Found “Not In Compliance With Nasdaq Listing Rules,” Won’t Get Delisted Pending Appeal
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In a devastating development for Super Micro Computer (NASDAQ: SMCI) bulls, the company's request for additional time to file its requisite financial statements has been rejected, paving the way for the stock's delisting from the exchange.
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To wit, as per the reports that are just trickling in, Super Micro Computer has received an official letter from the Nasdaq exchange, wherein the company was found "not in compliance with Nasdaq listing rule 5250(C)(1)."
In the accompanying filing with the SEC, Super Micro Computer has disclosed:
SMCI goes on to note:
As we noted earlier this week, Super Micro Computer recently appointed BDO USA as the new auditor. Moreover, the company also submitted a compliance plan to the Nasdaq stock exchange on Monday "to support its request for an extension of time to regain compliance with the Nasdaq continued listing requirements."
As we've repeated ad nauseam, Super Micro Computer's latest string of bad luck began in August when Hindenburg Research published a damning report, detailing a litany of malpractices at the firm.
In response to this explosive report, Super Micro Computer delayed the filing of its annual report for FY 2024, presumably in a bid to undertake a comprehensive internal review. Do note that under the prevailing statutory requirements, SMCI's annual report had to be filed by the 30th of August.
Coming back, Super Micro Computer still has the opportunity to file an appeal with Nasdaq. In the meantime, the stock will continue trading.
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