Color Star Technology Regains Compliance with Nasdaq Minimum Closing Bid Price Rule

Rhea-AI Summary

Color Star Technology Co., (Nasdaq: ADD), an entertainment technology company, has regained compliance with Nasdaq's minimum closing bid price rule. The company received formal notification from Nasdaq that it has met the requirement of maintaining a minimum bid price of $1.00 per share for its ordinary shares. This compliance was achieved after the closing bid price of Color Star's Class A Ordinary Shares remained at $1.00 or higher for 10 consecutive business days from September 12, 2024 to September 25, 2024.

Color Star Technology focuses on applying technology and artificial intelligence in the entertainment industry. The company operates through its subsidiaries, Color Metaverse Pte. and CACM Group NY, Inc., providing online entertainment performances and music education services via its Color World platform.

Positive

• Regained compliance with Nasdaq's minimum closing bid price rule
• Maintained a minimum bid price of $1.00 per share for 10 consecutive business days
• Bid price deficiency matter is now closed

Negative

• None.

Insights

Financial Analyst

Color Star Technology's regaining of Nasdaq compliance is a positive development for the company. Meeting the minimum bid price requirement of $1.00 per share for 10 consecutive business days demonstrates improved market perception and potentially increased investor confidence. This compliance removes the immediate threat of delisting, which is important for maintaining access to capital markets and institutional investors.

However, it's important to note that while this news addresses a short-term concern, it doesn't necessarily reflect fundamental changes in the company's financial performance or business prospects. With a relatively small market cap of about $59.4 million, Color Star remains a microcap stock, which typically carries higher volatility and risk.

Investors should look beyond this compliance news and focus on the company's core business in entertainment technology and AI applications. Future financial results and progress in their technology initiatives will be more indicative of long-term value. While avoiding delisting is positive, sustained share price performance and business growth will be key for maintaining compliance and attracting investor interest.

NEW YORK, Oct. 01, 2024 (GLOBE NEWSWIRE) --  Color Star Technology Co., Ltd. (Nasdaq: ADD) (“Color Star” or the “Company”), an entertainment technology company with a global network that focuses on the application of technology and artificial intelligence in the entertainment industry, announced today that it received a formal notification from the Nasdaq Stock Market LLC (“Nasdaq”) that the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2), which requires the Company’s ordinary shares to maintain a minimum bid price of $1.00 per share.

The Nasdaq staff made this determination of compliance after the closing bid price of the Company’s Class A Ordinary Shares has been at $1.00 per share or greater for the last 10 consecutive business days from September 12, 2024 to September 25, 2024. Accordingly, the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2) and this bid price deficiency matter is now closed.

About Color Star Technology Co., Ltd.

Color Star Technology Co., Ltd. (Nasdaq: ADD) is an entertainment and education company that provides online entertainment performances and online music education services. Its business operations are conducted through its wholly-owned subsidiaries, Color Metaverse Pte. Ltd. and CACM Group NY, Inc. The Company’s online education is provided through its Color World music and entertainment education platform. More information about the Company can be found at www.colorstarinternational.com and www.colorstar.investorroom.com. 

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. 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. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantee of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development, including the development of the metaverse project; product and service demand and acceptance; changes in technology; economic conditions; the growth of the educational and training services market internationally where ADD conducts its business; reputation and brand; the impact of competition and pricing; government regulations; the ability of Color Star to meet NASDAQ listing standards in connection with the consummation of the transaction contemplated therein; and other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by Color Star. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof unless required by applicable laws, regulations or rules.

Contact

Color Star Investor Relations
Office Number No. 1003, 9th Floor,
7 World Trade Center, Suite 4621
New York NY 10007
Office: (212) 410-5186
Email ir@colorstarinternational.com

FAQ

When did Color Star Technology (ADD) regain compliance with Nasdaq's minimum bid price rule?

Color Star Technology regained compliance with Nasdaq's minimum bid price rule on September 25, 2024, after maintaining a closing bid price of $1.00 or higher for 10 consecutive business days from September 12, 2024 to September 25, 2024.

What is the minimum bid price requirement for Color Star Technology (ADD) to maintain Nasdaq listing?

Color Star Technology must maintain a minimum bid price of $1.00 per share for its ordinary shares to comply with Nasdaq Listing Rule 5550(a)(2).

What are the main business operations of Color Star Technology (ADD)?

Color Star Technology focuses on the application of technology and artificial intelligence in the entertainment industry, providing online entertainment performances and online music education services through its subsidiaries.