ENGlobal Corporation Faces Delisting from Nasdaq, Common Stock to Trade on OTC Markets

ENGlobal Corporation (NASDAQ: ENG) received a notice from The Nasdaq Stock Market on December 5, 2024, indicating that the company has failed to comply with Listing Rule 5550(b), the minimum shareholders’ equity rule. As a result, the Nasdaq Hearings Panel has decided to delist the company’s common stock, with trading suspension set to commence on December 6, 2024.

The company had previously been granted an exception by Nasdaq to continue its listing on the Nasdaq Capital Market until November 26, 2024, on the condition that ENGlobal demonstrates compliance with Listing Rule 5550 by that date. However, failing to meet this requirement has led to the impending delisting.

Following the delisting notice, Nasdaq will file a Form 25 Notification of Delisting with the U.S. Securities and Exchange Commission (SEC) once any applicable appeal periods have passed. Going forward, ENGlobal’s common stock is expected to trade under the symbol “ENGC” on the OTC Markets system starting December 6, 2024. The company has highlighted that it is uncertain about the impact this transition will have on the liquidity of its common stock.

ENGlobal Corporation has a 15-day window following the receipt of the Panel’s decision to request a review by the Nasdaq Listing and Hearing Review Council. Additionally, the Council reserves the right to independently review the Panel’s decision within 45 calendar days of the notice being received by the company.

In its disclosure, ENGlobal Corporation included forward-looking statements regarding the trading of its common stock on the OTC Markets system and the potential impact on its liquidity. While the company believes these statements to be reasonable, it cannot guarantee their accuracy. ENGlobal also stated that it will not hesitate to update or revise forward-looking statements if necessary.

Investors and stakeholders are advised to be cautious as actual results may differ substantially from the expectations outlined in the forward-looking statements due to the risks and uncertainties detailed in the company’s previous filings with the SEC, including its Annual Report on Form 10-K for the year ended December 30, 2023, and subsequent reports.

This report concludes with the signature of Darren W. Spriggs, the Chief Financial Officer, Treasurer, and Corporate Secretary of ENGlobal Corporation, dated December 5, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read ENGlobal’s 8K filing here.

ENGlobal Company Profile

ENGlobal Corporation provides engineering and professional project execution services primarily to the energy sector in the United States and internationally. It operates in two segments, Commercial and Government Services. The Commercial segment provides multi-disciplined engineering services and fabrication relating to the development, management, and execution of projects requiring professional engineering and related project management services.