Qudian Inc. (NYSE: QD), a technology platform supporting the enhancement of the online consumer finance experience in China, recently announced that it has received a letter from the New York Stock Exchange (NYSE) dated February 7, 2022, informing the company that it is “below the NYSE’s continued listing standards due to the trading price of Qudian’s American depositary shares (ADSs).”
As noted in a release, “pursuant to Section 802.01C of the NYSE’s Listed Company Manual, a company will be considered to be below compliance standards if the average closing price of its security as reported on the consolidated tape is less than $1.00 over a consecutive 30 trading-day period. The Company has six months (the Cure Period) following receipt of the notice to regain compliance with the minimum share price requirement.”
The firm may regain compliance “at any time during the Cure Period if on the last trading day of any calendar month during the Cure Period the Company has a closing share price of at least $1.00 per ADS and an average closing share price of at least $1.00 per ADS over the 30 trading-day period ending on the last trading day of that month.”
In the event that at the expiration of the 6-month Cure Period, both a $1.00 per ADS closing share price on the last trading day of the Cure Period and a $1.00 per ADS average closing share price over the 30 trading-day period ending on the last trading day of the Cure Period are not attained, the NYSE “will commence suspension and delisting procedures.”
In order to address this issue, Qudian says that it plans to “monitor the market conditions of its listed securities and is still considering its options.” The Fintech firm has notified the NYSE on February 10, 2022 of its “intent to cure the deficiency.”
During the Cure Period, Qudian’s ADSs will “continue to be listed and traded on the NYSE, subject to its compliance with other NYSE continued listing standards and other rights of the NYSE to delist the ADSs.”
The NYSE notification “does not affect the company’s business operations, its U.S. Securities and Exchange Commission reporting requirements or contractual obligations,” the update clarified.
As covered Qudian Inc. is a tech platform “empowering the enhancement of online consumer finance experience in China.”
Qudian’s goal is to leverage technology “to make personalized credit accessible to hundreds of millions of young, mobile-active consumers in China who need access to small credit for their discretionary spending but are underserved by traditional financial institutions due to lack of traditional credit data or high cost of servicing.”
Qudian’s credit solutions “enable licensed, regulated financial institutions and ecosystem partners to offer affordable and customized loans to this young generation of consumers.”