(Bloomberg) — Super Micro Computer Inc. investors have spent two months waiting for the company to present a plan that would allow it to remain listed on the Nasdaq exchange. With just days left until the deadline, that plan has yet to materialize.
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The server maker has until Monday, Nov. 18, to file a delayed 10-K annual report or submit a plan to submit the form to Nasdaq to comply with exchange rules. Super Micro’s original deadline to file the plan was Saturday, Nov. 16, but in accordance with Nasdaq rules: if the last day of the period is a Saturday, Sunday, federal or Nasdaq holiday, the period is extended until end of the next. day that is not one of those days.
“As we previously disclosed, Super Micro intends to take all necessary steps to achieve compliance with Nasdaq’s continued listing requirements as soon as possible,” a Super Micro spokesperson said. Super Micro shares rose as much as 2.8% in early trading on Friday.
Super Micro delayed its annual presentation in August following a damaging report from short seller Hindenburg Research. The company also faces an investigation by the US Department of Justice, and its auditor, Ernst & Young LLP, resigned in October, citing concerns about Super Micro’s governance and transparency.
This week, Super Micro postponed the filing of its quarterly 10-Q form for the period ending September 30. The company also said that the committee that formed its board of directors to review internal controls had completed its investigation stemming from concerns raised by Ernst & Young, and that while it “has other work in progress,” it expects the review to be completed soon. .
“Whatever the results are, they would probably influence their plan” to hire a new auditor and file their financial reports, Wedbush analyst Matt Bryson said by phone. “I wouldn’t be surprised if something comes out in the next few days.”
Super Micro shares have fallen nearly 70% since it announced it would delay its annual presentation in August. The losses are even greater when measured from the stock’s all-time high in March. More than $55 billion in value has been erased during that span as Super Micro shares plummeted 85%.
If the company submits a plan that Nasdaq approves, its deadline to submit it will likely be extended into February. If a plan is not approved, the company can appeal the decision. Nasdaq declined to comment.