SHANGHAI, Nov. 15,
2024 /PRNewswire/ -- XChange TEC.INC (NASDAQ: XHG)
(the "Company"), today announced that it has received a notice (the
"Notice") from The Nasdaq Stock Market LLC ("Nasdaq") dated
November 13, 2024 stating that the
Company is not in compliance with the requirement to maintain a
minimum Market Value of Listed Securities ("MVLS") of $35 million as set forth under Nasdaq Listing
Rule for continued listing on The Nasdaq Capital Market.
Nasdaq Listing Rule 5550(b)(2) requires companies to maintain a
minimum MVLS of $35 million (the
"MVLS Requirement"), and Nasdaq Listing Rule 5810(c)(3)(C)
specifies that a deficiency occurs if the MVLS falls below this
threshold for 30 consecutive business days. Based on the Company's
MVLS for the 30 consecutive business days from October 2, 2024, to November 12, 2024, the Company no longer meets
this requirement. The Notice further states that the Company also
does not meet the alternative requirements under Nasdaq Listing
Rules 5550(b)(1) and 5550(b)(3).
Pursuant to Nasdaq Listing Rule 5810(c)(3)(C), the Company has a
180-calendar-day compliance period, which expires on May 12, 2025.
If, during this period, the Company's MVLS closes at or above $35
million for at least 10 consecutive business days, Nasdaq will
notify the Company of its compliance, and the matter will be
closed.
If the Company is unable to regain compliance with the
applicable Nasdaq Listing Rules by the end of the compliance
period, it will receive a written notice that its securities are
subject to delisting.
The Notice has no immediate effect on the listing of the
Company's securities and the Company's securities continue to trade
on Nasdaq. The Company intends to take appropriate actions within
the specified period to regain compliance. However, there can be no
assurance that the Company will be able to regain compliance under
the MVLS Requirement and other applicable Nasdaq Listing Rules.
About XChange TEC.INC
XChange TEC.INC, through its subsidiaries and consolidated
variable interest entities, operates insurance agency and insurance
technology business. The insurance agency is PRC-licensed and
operates nationwide in the PRC with a wide range of insurance
products underwritten by major insurance companies, including
industry leading and/or state-owned property and casualty insurance
companies as well as certain regional property and casualty
insurance companies in the PRC. The insurance technology
business is focused on operating and developing insurance
technology in the PRC, including developing SaaS platform to
connect consumers and underwriting support.
Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements include, among
others, statements regarding the Company's plans to regain
compliance with Nasdaq Rules for continued listing. The Company's
actual results may differ materially from those expressed in any
forward-looking statements as a result of various factors and
uncertainties. The reports filed by the Company with the U.S.
Securities and Exchange Commission discuss these and other
important factors and risks that may affect the Company's business,
results of operations and financial conditions. For these reasons,
among others, investors are cautioned not to place undue reliance
upon any forward-looking statements in this press release. The
Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
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SOURCE XChange TEC.INC