JA Solar gets listing warning due to stock price
JA Solar Holdings Co. Ltd. said Tuesday that it has received a warning from the Nasdaq stock market that its closing price has fallen too low over the past month to meet listing requirements.
The Chinese solar power product manufacturer's shares traded in the U.S. have fallen below the $1 threshold required by the Nasdaq.
The notice has no immediate effect on the company's listing status. The company has until April 9, get its share price back above $1 and keep it there for 10 straight business days. If it doesn't achieve that goal, the company faces delisting.
The stock, which debuted in early 2007, traded as high as $27 in 2008, but hasn't been above $1 since August.
JA Solar is one of a number of companies in the solar energy field that is struggling with low prices and weak demand for their products. Prices for solar panels have fallen off a cliff as the Chinese government pushed hundreds of small players into the industry. New companies still were springing up in 2011 even after Western countries, hammered by the global economic crisis, cut subsidies. Supplies surged as sales growth stalled, forcing sellers to slash prices to unprofitable levels.
JA Solar's shares were roughly unchanged at 80 cents in afternoon trading.