It does not comply with the listing regulations of NASDAQ Global Select market!
On the evening of January 20, 2022 Beijing time, the financial sector announced that the company had received a notice from the NASDAQ hearing group and had decided to delist the company’s ADSS from Nasdaq by submitting form 25 (delisting notice) to the securities and Exchange Commission after the end of the applicable appeal period, and would suspend the trading of the company’s ADSS from the opening of the market on January 21, 2022.
After the opening of the day, the sharp decline in the financial sector triggered a temporary stop. As of press time, the decline in the financial sector narrowed to 36.6%.
the financial sector is going to delist
On January 20, the financial sector announced that the company received a letter on January 19, and the NASDAQ hearing panel informed the company that it had decided to delist the company’s ADSS from Nasdaq by submitting form 25 (delisting notice) to the securities and Exchange Commission after the end of the applicable appeal period.
After the news, the financial sector once plunged nearly 50% at the opening, triggering a temporary stop.
It is understood that the financial sector is a company that mainly provides online securities trading services, wealth management products, securities investment consulting services supported by financial technology for Chinese individual investors, as well as financial database and analysis services for institutional customers.
Public information shows that American depositary receipts in the financial sector were listed on NASDAQ in October 2004 at an issue price of US $13. In 2020, the annual operating revenue of the financial sector was USD 40.033 million, a year-on-year increase of 13%; The net loss was US $10.558 million.
after receiving the delisting warning last year, it made a fixed increase
According to the announcement, the financial sector was informed as early as may 2021 that it did not meet the shareholders’ equity requirements of article 5450 (b) (1) (a) of the listing rules, and received the delisting notice in August 2021. At that time, NASDAQ said it had determined that the company had failed to provide a satisfactory final plan to re comply with the $10 million minimum shareholders’ equity requirement for continued listing in Nasdaq’s Global Select market. It is understood that as of December 31, 2020, the shareholders’ equity of financial companies was about US $4.6 million.
The announcement said that the company also did not meet the continuous listing requirements under the alternative standards related to the market value of listed securities or the company’s total assets or total income. The staff member pointed out that the proposed time limit for the company to resume compliance exceeded the 180 day period specified in the NASDAQ listing rules, and the company’s loss history will have a negative impact on the company’s ability to resume or maintain compliance.
Later, the financial community proposed to hold a hearing in the expert group to suspend any delisting action of NASDAQ until the expert group made a decision.
After receiving the delisting warning, the financial sector took positive action.
On August 16, 2021, the financial sector announced that the company had signed a securities purchase agreement with a qualified investor. Under the agreement, the company will issue 5743000 ordinary shares (convertible into 114860 American Depositary Shares (ads)) for a total purchase price of US $773700. The purchase price is about 20% lower than its closing price of $8.42 per ads on August 6. Each ads represents 50 ordinary shares of the company.
In addition, the financial sector will issue two warrants to investors, including up to 57430 ADSS at an exercise price of $9.42 per share and up to 57430 ADSS at an exercise price of $10.42 per share. According to the Convention, this part of the warrants will be exercised in whole or in part within 5 years.
After the hearing held in September 2021, the NASDAQ expert group agreed that the financial community would gradually issue the requirements of the NASDAQ capital market and extend it until January 14, 2022 to prove that it meets the minimum shareholder equity requirements of $2.5 million, or the alternative compliance standards specified in 5550 (b) (1) of the NASDAQ listing rules.
