Glonghui, May 16, 丨 QH.US (QH.US) announced that the company received a notice from the NASDAQ Listing Qualification Department on May 10, 2024, indicating that (1) the company did not meet the minimum bid requirements stipulated in section 5450 (a) (1) of the NASDAQ Listing Rules because the closing bid price of the company's American Depositary Authority for 30 consecutive trading days (the “Minimum Bid Rule”) per ADS share (“ADS”) remained below $1.00, and (2) within the last 30 working days prior to the date the notice was issued, company listing The minimum market value of shares (“MVPHS”) is less than US$15 million, which does not comply with the requirements for continued listing in the NASDAQ Listing Rules 5450 (b) (1) (“MVPHS Rules”).
The notice had no direct impact on the company's listing on the NASDAQ global market. According to Nasdaq Listing Rules 5810 (c) (3) (A) and 5810 (c) (3) (D) (D), the Company's compliance period is 180 calendar days, or until November 6, 2024 (the “Compliance Period”) to resume compliance with minimum bid rules and MVPHS rules. If at any time during the compliance period, the closing bid for each ADS for at least 10 consecutive trading days is at least $1.00, NASDAQ will provide the company with written confirmation that it complies with the minimum bid rules, and the matter will be closed. If at any time during the compliance period, the company's MVPHS closing price is $15,000,000 or more, or $5 million or more (assuming the company meets other requirements under the NASDAQ Continuing Listing Rules), then for at least ten (10) consecutive business days, NASDAQ will provide the company with written confirmation of compliance with the MVPHS rules and the matter will be closed.
If the company does not resume compliance with the minimum bid rules by November 6, 2024, the company may be eligible for additional time to resume compliance. To be eligible, the company must submit an online transfer application to the NASDAQ Capital Market no later than November 6, 2024, and submit a non-refundable application fee of $5,000 to meet the continuing listing requirements for public holdings and all other initial listing criteria other than the NASDAQ Capital Market bid requirements, and provide NASDAQ with written notice of its intention to remedy the defects, including reverse stock splits if necessary. As part of the review process, staff will decide whether employees believe the company can remedy this shortcoming. If staff members conclude that the company will not be able to remedy the defect, or if the company decides not to submit a transfer application or make the required statements, NASDAQ will issue a notice stating that the company's securities will be delisted. If a company chooses to implement a reverse stock split, the split must be completed no later than ten (10) business days prior to November 6, 2024, or the expiration of the second compliance period (if approved). The company intends to monitor its ADS closing bid from now until November 6, 2024, and is considering its options, including adjusting its Class A common share ratio to resume compliance with the minimum bid requirements under the Nasdaq Listing Rules.
If the company fails to resume compliance with the MVPHS rules by November 6, 2024, the company will be notified in writing that its securities will be delisted. If such notice is received, the company may appeal Nasdaq's decision to delist its securities, but there is no guarantee that NASDAQ will approve the company's request to continue listing. Alternatively, the company may consider applying to transfer the company's securities to the NASDAQ capital market before the compliance period expires. In order to carry out the transfer, the company must submit an online transfer application, pay an application fee of $5,000, and meet the NASDAQ capital market's ongoing listing requirements. The company intends to monitor its market value from now until November 6, 2024, and is evaluating all available options to restore compliance and maintain its continued listing.
The company currently complies with all other NASDAQ continuing listing standards. The notice letter does not affect the company's business operations, its SEC reporting requirements, or contractual obligations.