ConnectM delisted from Nasdaq, CEO says he’s surprised
Photo I Courtesy of ConnectM Technology Solutions
Bhaskar Panigrahi, CEO of ConnectM Technology Solutions
Following months of compliance issues, Marlborough-based green energy technology company ConnectM Technology Solutions has been delisted from the Nasdaq stock market.
ConnectM’s Nasdaq trading was suspended Thursday morning, according to the firm’s letter to stockholders on the same day. The suspension was implemented just two days after ConnectM announced it had traded 1.5 million shares of common stock to purchase a New Jersey-based HVAC company.
The delisting is a result of ConnectM’s failure to meet a $50-million market value for 30 consecutive business days, a requirement of all securities listed on the Nasdaq. The removal comes after the company originally received notice on Sept. 4 that it was out of compliance, with the firm being given 180 calendar days, or until March 3, to regain compliance for at least 10 consecutive business days or risk delisting.
After failing to meet Nasdaq’s $50-million market value benchmark within the allotted timeframe, ConnectM received a delisting notice in March, followed swiftly by the company announcing plans to request an appeal before the Nasdaq panel, a request that temporarily suspended its delisting.
ConnectM’s CEO Bhaskar Panigrahi said his company met with Nasdaq’s hearing panel, and thus, he was not expecting the delisting.
“We had a meeting with the hearings panel two weeks ago to discuss our plan to regain compliance under the Nasdaq market value of listed securities and timely filing requirements and were quite surprised by their sudden suspension notice,” Panigrahi wrote in his letter to stockholders.
Panigrahi said company management had made substantial progress towards regaining listing compliance after its hearing and sent new information to Nasdaq on May 7. The company is consulting with its advisors to explore appealing Nasdaq’s decision and plans to return to Nasdaq or the New York Stock Exchange, regardless of its appeal’s success.
ConnectM did not respond to WBJ’s request for comment.
In the midst of its compliance efforts, ConnectM is considering a $62-million sale to three of its largest institutional investors.
“I want to be very clear that ConnectM's fundamentals have not changed. Our operations and growth prospects are as strong as ever. We have several appealing capital raise, organic, and inorganic growth options available to us and management will prudently evaluate these options in the best interest of our stockholders. I believe the future remains bright for ConnectM and our intrinsic value is well above our current market price,” Panigrahi said.
The company is currently listed on the lower-tiered OTC’s Pink Open Market market and has plans to uplist to the OTCQB market as soon as possible. ConnectM stock is also available to be traded through specified brokerage accounts including Charles Schwab, Fidelity Investments, E*TRADE, and Interactive Brokers.
ConnectM is in the process of filing its annual report for the year ended on Dec. 31, with the U.S. Securities and Exchange Commission followed by its quarterly report for the quarter ended on March 31, according to a Friday letter Bhaskar wrote to the ConnectM community.
In April, the company announced its third quarter report of 2024 contained three material errors, and thus, could not be relied upon. ConnectM said it would file an amended report with updated financials as soon as those became available. No further report has been filed with the SEC.
Just before ConnectM was removed from the stock market, the company announced on Tuesday it had acquired all assets of Air Temp Service, a New Jersey-based heating and cooling company, in return for 1.5 million shares of common stock.
“This strategic addition brings us closer to our vision of comprehensive electrification solutions and positions us to deliver even greater value to both residential and commercial customers. Air Temp's longstanding commitment to excellence aligns perfectly with ConnectM's mission to accelerate the transition to a smarter, cleaner energy economy," John Pitcavage, ConnectM's president of home and building electrification, said in the Tuesday press release.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.
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