China Finance Online Co. Limited NASDAQ GS:JRJC), a web-based financial services company that provides Chinese retail investors with fintech-powered online access to securities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers, announced on Thursday it has received a notification letter from the Nasdaq Listing Qualifications Department of the Nasdaq Stock Market LLC notifying the Company that, for the last 30 consecutive business days, the closing bid price for the Company’s American Depositary Shares has closed below a minimum $1 per share required for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (Rule 5550(a)(2)).
China Finance Online reported in accordance with Nasdaq Listing Rule 5810(c)(3)(A), it has been given 180 calendar days, or until January 27, 2020 to regain compliance with Rule 5550(a)(2).
“If the Company chooses to implement a reverse stock split, it must complete the split no later than ten business days prior to January 27, 2020 to regain compliance. If at any time before January 27, 2020, the bid price of the Company’s ADR closes at $1.00 per share or more for a minimum of 10 consecutive business days (an Automatic Compliance Event), the Staff will provide written confirmation that the Company has achieved compliance with Rule 5550(a)(2).”
The company also noted that if it does not regain compliance with Rule 5550(a)(2) by January 27, 2020, it may be afforded a second 180 calendar day period to regain compliance. The company added:
“To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, except for the minimum bid price requirement. In addition, the Company would be required to notify Nasdaq of its intent to cure the deficiency during the second compliance period, which may include, if necessary, implementing a reverse stock split.”