Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 32

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 32
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 (iii) Nasdaq Listing Rule 5450(b)(2)(C) to maintain a minimum market value of publicly held shares of $15,000,000 (the “MVPHS Rule”) and (iv) Nasdaq Listing Rule 5450(b)(1)(B) which requires us to have a minimum of 1,100,000 shares publicly held shares (the “MPLS Requirement”). In January 2025, we determined that we would be unable to fully comply with the continuing listing standards of the Nasdaq Global Market and, therefore, when we presented our plan on January 9, 2025, to the Nasdaq Hearings Panel, to regain compliance with Nasdaq’s continuing listing standards, we included an application to transfer trading of our Common Stock and Public Warrants to the Nasdaq Capital Market, where we felt there was a better chance for us to comply with the continuing listing standards. For us to comply with the continuing listing standards for the Nasdaq Capital Market, the MVLS of our Common Stock must be at least $35,000,000 or we must have stockholders’ equity of at least $2,500,000 (“MSE”). If we are not able to comply with either of these continuing listing standards for at least 10 trading days, by May 5, 2025, our Common Stock and Public Warrants will, in all likelihood, be delisted from trading on Nasdaq and our securities will, thereafter, be quoted on the OTC Markets. Since it is extremely unlikely that we will be able to achieve the $35,000,000 MVLS requirement by that date, our only way to possibly avoid delisting is to increase our stockholders’ equity by at least $25,850,000 prior to May 5, 2025 by a combination of raising capital and converting outstanding debt. However, after several discussions with the Underwriter, it has been determined that we will not be able to raise more than gross proceeds of $17,250,000 in this offering and, therefore, it is also unlikely that we will be able to satisfy the $2,500,000 MSE for continued listing on the Nasdaq Capital Market. Even if we were able to raise sufficient gross proceeds in this offering and convert a sufficient amount of outstanding debt to achieve an MSE of $2,500,000, it is likely that the trading price of our Common Stock will suffer substantial downward pressure, immediately after the closing of this offering, which could cause our Common