PyroGenesis, a Canadian high-tech company, has recently announced that they have been granted a 180-day extension by NASDAQ to meet the minimum bid price requirement. This extension will allow PyroGenesis to maintain their stock exchange listing and continue to trade on NASDAQ.

The extension was granted as a result of a request made by PyroGenesis, which was evaluated and approved by NASDAQ’s Listing Qualifications Department.

What is the Minimum Bid Price Requirement?

The minimum bid price requirement is a rule set by NASDAQ that requires companies to maintain a minimum stock price of $1 per share. This rule was established to ensure that all companies listed on NASDAQ are financially stable and viable businesses.

If a company fails to meet this requirement, NASDAQ may delist the company’s stock from their exchange.

PyroGenesis’ recent extension means that they now have until June 14, 2021, to regain compliance with the minimum bid price requirement.

Why did PyroGenesis Need an Extension?

PyroGenesis’ stock experienced a decline in price, which led to the company temporarily falling out of compliance with NASDAQ’s minimum bid price requirement. This decline was caused by a number of factors, including the impact of the COVID-19 pandemic on the global economy.

However, PyroGenesis remains confident in their ability to regain compliance before the June 14, 2021, deadline, and are taking steps to do so.

The company has recently announced a new contract with an unnamed US-based customer, which will generate approximately $11 million in revenue over the next 12 months.

What does this Mean for PyroGenesis?

The extension granted by NASDAQ means that PyroGenesis can continue to trade on the exchange and maintain their stock exchange listing. This is an important step for the company, as it allows them to continue to access capital markets and fund their ongoing research and development efforts.

PyroGenesis’ management team has stated that they are committed to regaining compliance with the minimum bid price requirement before the June 14, 2021, deadline. They are confident that the company’s recent contract announcement, along with other initiatives, will help them achieve this goal.

Overall, the extension granted by NASDAQ is a positive development for PyroGenesis and provides them with additional time to regain compliance and continue to grow their business.