Hyzon Motors says it will appeal a determination by Nasdaq that threatens to halt all trading of the company’s common stock at the opening bell on Tuesday as well as removal from the stock exchange.
Hyzon was notified last week that the Listing Qualifications Staff of The Nasdaq Stock Market LLC will suspend trading of Hyzon’s Class A common stock and warrants.
A Form 25-NSE also will be filed by Nasdaq with the Securities and Exchange Commission to remove the company from listing and registration with Nasdaq.
By appealing the decision, Nasdaq Listing Rules allow for a stay pending a hearing before a stock exchange panel.
Headquartered in Honeoye Falls, Hyzon develops zero-emissions commercial vehicles powered by hydrogen fuel cells. There was a change of upper management and on the board of directors in August. Parker Meeks was named president and interim CEO, replacing Craig Knight, who also left his position as director of the company.
The actions by Nasdaq were prompted after Hyzon announced it would not meet the Feb. 13 deadline to refile company reports for the periods ending June 30 and Sept. 30 of 2022.
But Hyzon said its audit committee determined on Feb. 6 that financial statements in the period ending Sept. 30, 2021, “should no longer be relied upon.” The issues for that quarter involve revenue relating to its European joint venture operations, the company said.
The company said new reports will be filed “as soon as practicable.”
In a report filed with the SEC in August, Hyzon “previously reported a material weakness in the company’s internal control over financial reporting in its previously issued financial statements filed on Form 10-K for the year ended Dec. 31, 2021, and on Form 10-Q for the three-month period ended March 31, 2022. The existing material weakness related to the identification of limited resources and business processes necessary to ensure the appropriate segregation of duties and effective review procedures with respect to the processing and recording of financial transactions, as well as an appropriate level of control oversight over the financial statement reporting process.”
Hyzon stock closed at 1.80 on Thursday and pre-market trading showed a decline of .11 this morning. The high-water mark of 16.50 came on Feb. 5, 2021.
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