Carbon Revolution PLC experienced a sharp drop in its stock price, falling 65.2% on Friday after the company disclosed that Nasdaq has moved to delist its securities. The denial came via notification from Nasdaq’s Listing Qualifications Department, which said it would not grant the company’s request to remain listed.
The exchange identified two specific compliance failures. First, Carbon Revolution was found to be out of compliance with Nasdaq’s minimum shareholders’ equity requirement. Second, the company failed to file its Annual Report on Form 20-F covering the period ended June 30, 2025. Those deficiencies formed the basis for the denial of the continued-listing request.
According to the notice, trading in Carbon Revolution’s securities will be suspended effective at the open of business on February 9, 2026. The company has stated that it does not intend to appeal Nasdaq’s decision.
Separately, Carbon Revolution received a different notice on February 3 regarding insufficient Market Value of Publicly Held Shares, or MVPHS. Nasdaq indicated that the company’s MVPHS had remained below the $15,000,000 minimum for 30 consecutive business days, from November 13, 2025, through February 3, 2026.
Under typical procedures, a company facing an MVPHS deficiency would be afforded a 180-day compliance period to regain the minimum market value. In this instance, however, that potential remedy was overtaken by Nasdaq’s broader determination to deny continued listing, making the compliance window effectively moot.
Carbon Revolution describes itself as an early-stage growth company focused on the advanced manufacturing of carbon fiber wheels for the global automotive industry. The firm supplies lightweight carbon fiber wheels and operates as a Tier 1 supplier to OEM automakers.
The Nasdaq action and the announced suspension of trading are likely to materially restrict the company’s access to public capital markets and reduce liquidity for existing shareholders. The company’s decision not to appeal will accelerate the process that transitions the securities away from Nasdaq trading at the stated suspension date.
Key points
- Shares of Carbon Revolution plunged 65.2% after Nasdaq denied the company’s request for continued listing.
- Nasdaq cited non-compliance with minimum shareholders’ equity requirements and failure to file the Form 20-F for the period ended June 30, 2025.
- Trading in the company’s securities will be suspended at the open of business on February 9, 2026, and the company does not intend to appeal; a separate MVPHS deficiency was also noted for the period Nov. 13, 2025 to Feb. 3, 2026.
Risks and uncertainties
- Shareholders face sharply reduced liquidity and market access once trading is suspended and the Nasdaq listing is lost - this primarily impacts equity investors and capital markets participants.
- Regulatory non-compliance, including the missed Form 20-F filing, raises ongoing disclosure and governance uncertainties that affect investor confidence in the company and the broader automotive supplier sector.
- The company’s MVPHS falling below the $15,000,000 threshold signals limited public float and market capitalization, which can impede the company’s ability to raise capital on public markets.