Power Solutions International Inc., (PSI) a manufacturer of emissions-certified, alternative-fuel power systems, announced that the Nasdaq Stock Exchange has determined to delist the company’s common stock.
Nasdaq’s Hearings Panel’s determination was made in connection with the company’s non-compliance with Securities and Exchange Act (SEC) filing requirements. Following the suspension of trading, the company said it expects its common stock will be quoted on the OTC Pink market electronic quotation service operated by OTC Markets Group Inc. until such time as the company becomes current in its reporting obligations with the SEC and seeks to relist the common stock on a national exchange. The common stock will continue to trade under the symbol PSIX.
The announcement comes weeks after Weichai America Corp. announced it would invest $60 million in the Wood Dale, Ill., company. The deal, which closed April 3, gives Weichai a 40.71% stake in PSI, with an option increase its stake to 51% within 18 months. Read more about the Weichai/PSI deal.
“While we are disappointed with the Nasdaq’s delisting, it does not in any way impact our strategic collaboration agreement with Weichai, our business activities, or our valued relationships with customers, suppliers and employees,” said Ray Anderson, interim chief executive officer of PSI. “We remain focused on driving the adoption of our engines and technologies across the globe as we strive to generate sustainable sales growth and profitability. At the same time, we continue to diligently work to restate our financials and become current with our reporting obligations with the SEC. Once that process is complete, we will seek to relist the company’s common stock on a major exchange. We are appreciative of Weichai’s support as we work to become compliant and look forward to executing on the multiple growth and cost savings opportunities we believe we can achieve through our partnership.”
PSI, which was founded in 1996 and went public on April 4, 2011, disclosed in January that it was under investigation by the SEC. At that time, PSI said the investigation was believed to center on revenue recognition practices and resulting accounting errors. About $18 million in revenue was erroneously recognized in Power Solutions’ 2015 financial statements, the company said.
PSI also announced that on March 23 it had received an additional notice from the Staff of the Listing Qualifications Department of Nasdaq, based upon the company’s continued non-compliance with the filing requirement set forth in Nasdaq Listing Rule 5250(c)(1). Specifically, the letter stated that since the PSI has not yet filed its Form 10-K for the year ended Dec. 31, 2016, this serves as an additional basis for delisting the company’s securities from Nasdaq.