Why Did Australian Oilseeds Stock Shoot up 36% In After-Hours Trading?

Australian Oilseeds Holdings Ltd. (NASDAQ:COOT) jumped 35.93% to $0.87 during after-hours trading on Friday after receiving a crucial extension from NASDAQ to maintain its listing status.

Check out the current price of COOT stock here.

NASDAQ Grants Critical Extension

The sustainable edible oils manufacturer received written confirmation from the NASDAQ Hearings Panel on August 22, granting an extension until September 30, to regain compliance with the Equity Rule requiring minimum stockholders’ equity of $2.5 million.

According to Benzinga Pro data, COOT’s regular session closed at $0.64, up 4.63%, before the after-hours surge added another $0.22 per share. The stock has traded between $0.45 and $1.69 over the past year with a market capitalization of $17.06 million.

Management Optimistic About Compliance

“We believe the extension granted by the Nasdaq Hearings Panel will allow us to finish executing on our plan to maintain compliance with Nasdaq’s minimum shareholders’ equity requirement,” said CEO Gary Seaton.

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The company reported $2.6 million in shareholder equity as of the July 22 hearing date, just above the $2.5 million threshold.

Compliance Strategy Outlined

Australian Oilseeds plans to maintain minimum equity levels through debt conversion and revenue increases. The Cootamundra, Australia-based company manufactures sustainable edible oils for global customers.

If compliance is achieved, COOT will face a mandatory one-year panel monitoring period under NASDAQ rules.

The extension provides breathing room for the small-cap manufacturer as it works to stabilize its financial position and avoid delisting from the major exchange.

Benzinga Edge Stock Rankings indicate that COOT stock has a negative price trend across all time frames. Find out how the stock ranks on other parameters.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.