CN Energy Group Inc., trading under the ticker CNEY on the Nasdaq Capital Market, experienced a significant drop in its stock price by 26.3% during after-hours trading on Friday. This decline was triggered by the announcement that the company received formal notice from Nasdaq concerning its potential removal from the exchange.
The Nasdaq Listing Qualifications Staff issued a written determination to delist CN Energy’s Class A ordinary shares due to the company’s failure to maintain the minimum bid price requirements set forth by the exchange. Specifically, the stock’s closing price remained below $1.00 for 30 consecutive business days, from December 3, 2025, through January 15, 2026. This breaches Nasdaq Listing Rule 5550(a)(2).
What complicates CN Energy’s situation is that the company cannot pursue the typical compliance period or extension for regaining compliance. This restriction results from the company having completed multiple reverse stock splits in a cumulative ratio that exceeds 250 shares within the previous two years. CN Energy executed a 1-for-30 reverse split in January 2024 and subsequently a 1-for-25 reverse split in May 2025, tallying a cumulative 1-for-750 reverse split ratio.
In response to the delisting notice, CN Energy has formally requested a hearing with a Nasdaq hearings panel, set for January 21, 2026. This appeal action automatically suspends the trading suspension related to the delisting. The company plans to present a remediation strategy within this appeal process. Until the panel delivers a decision, CN Energy’s shares will remain listed and continue to trade on Nasdaq.
The company has highlighted that the delisting notice does not interfere with its ongoing business functions or its responsibilities to report to the SEC.
CN Energy Group specializes in producing recyclable activated carbon and generating renewable energy derived from forest and agricultural residues. Its clientele includes food and beverage manufacturers, industrial producers, and enterprises focused on environmental protection.
Key Points:
- CN Energy’s stock fell sharply after Nasdaq’s delisting notification stemming from persistent bid price noncompliance.
- Multiple reverse stock splits conducted by the company over the past two years prevent eligibility for relief periods typically afforded to companies under Nasdaq rules.
- The company submitted a hearing request to challenge the delisting decision, allowing continued trading while the appeal is considered.
Risks and Uncertainties:
- The potential delisting poses risks to shareholder liquidity and the company’s trading profile within capital markets.
- The company’s history of aggressive reverse stock splits may indicate structural challenges with maintaining stock price levels.
- Ongoing regulatory scrutiny and the appeal outcome introduce uncertainty regarding the timing and conditions of sustained Nasdaq listing compliance.
Market Sectors Impacted: Environmental technology, renewable energy, industrial manufacturing, and capital markets related to exchange listing standards.