A123 Systems, a lithium-ion battery maker, received on Tuesday, August 22nd, a delisting notice from the Nasdaq if the company doesn’t reach above $1 in the next 6 months.
After touching a year-high last September, A123 Systems’ shares dropped more than 90%, reaching 37 cents on the Nasdaq on Wednesday, August 23rd, a lifetime-low. A123 Systems manufactures batteries for GM’s all-electric Chevy Spark and the Fisker Karma, and BMW’s hybrid cars. In May the company said there was ‘substantial doubt’ concerning its viability as it predicts severe losses in the following several quarters.
A123, whose stock once traded at more than $25 a share, saw its shares traded below Nasdaq’s minimum of $1 for the last 30 business days. Companies must maintain their shares above $1 if they want to be listed on the Nasdaq. If their stock falls bellow this limit for more than 30 consecutive business days, they will receive a delisting warning. A123’s deadline to get its shares above $1 is mid-February.
After the electric car market in the US didn’t bring the company the expected growth, A123 still has a hope after it recently signed an agreement with a Chinese conglomerate, which plans to help the battery maker expand in China with an investment of $465 million.