Luminar Technologies Inc.
10/21/2024 | Press release | Distributed by Public on 10/21/2024 04:37
Failure to Satisfy Listing Rule Form 8 K
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
On October 15, 2024, Luminar Technologies, Inc. (the "Company") received written notice (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market ("Nasdaq") notifying the Company that, based on the closing bid price of the Company's Class A common stock, par value $0.0001 per share (the "Common Stock"), for the last 30 consecutive trading days, the Company no longer complies with the minimum bid price requirement for continued listing on The Nasdaq Global Select Market. Nasdaq Listing Rule 5450(a)(1) requires listed securities to maintain a minimum bid price of $1.00 per share (the "Minimum Bid Price Requirement"), and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the Minimum Bid Price Requirement exists if the deficiency continues for a period of 30 consecutive trading days.
The Notice has no immediate effect on the listing of the Common Stock on The Nasdaq Global Select Market. The Company has 180 days from the date of the Notice to regain compliance and is considering all available options to comply with the Minimum Bid Price Requirement.
On September 16, 2024, the Company filed a definitive proxy statement for a special meeting of stockholders on October 30, 2024 to consider and approve a reverse stock split prior to December 31, 2024 at a ratio ranging from 1:5 to 1:20, with the ratio to be determined by the Company's board of directors (the "Reverse Stock Split Proposal").
Importantly, the Company believes the Reverse Stock Split Proposal will enable the Company to improve trading liquidity by increasing the price per share of the Company's Class A Common Stock, which could enable a broader range of institutions to invest in the Company's Class A Common Stock. In particular, the Company believes many institutional traders are discouraged or prevented from investing in equity stocks with a price below a certain threshold.
In addition, the Reverse Stock Split Proposal will help to ensure compliance with the Minimum Bid Price Requirement.
Forward-Looking Statements
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements include statements related to the possible effects of the reverse stock split on the price of the Common Stock. These forward-looking statements are based on the Company's current expectations and inherently involve significant risks and uncertainties. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which are discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent reports filed with the Securities and Exchange Commission. Readers should not place undue reliance on forward-looking statements, which speak only as of the date they are first made. Any forward-looking statements contained in this current report speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.