Aesthetic Medical International Holdings Group Ltd. Announces Receipt of Delisting Decision from the Nasdaq Hearings Panel
Aesthetic Medical International Holdings Group (Nasdaq: AIH) announced that it has received a delisting notice from the Nasdaq Hearings Panel dated May 17, 2024. The company's securities will be suspended from trading on May 21, 2024, and delisted after Nasdaq files a Form 25 with the SEC. AIH does not plan to appeal this decision. Post-delisting, AIH's American Depositary Shares are expected to be quoted on the OTC market, but there are no guarantees that brokers will continue to trade the ADSs. The company asserts that the delisting will not impact its operations in China's aesthetic medical industry and aims to enhance operational efficiency and performance growth.
- Commitment to enhancing operational management and efficiency.
- No significant impact on the company's operations within the aesthetic medical industry in mainland China.
- Nasdaq delisting due to failure to meet continued listing conditions.
- Suspension of trading of AIH securities on May 21, 2024.
- No intention to appeal the Nasdaq delisting decision.
- Uncertainty about the continued trading of ADSs on the OTC market.
- Potential lack of a market for ADSs post-delisting.
Insights
The decision to delist Aesthetic Medical International Holdings Group Ltd. (AIH) from Nasdaq is a significant development for investors. Typically, delisting indicates that a company has failed to meet the regulatory requirements set by the exchange, which often relates to financial health, governance, or compliance issues.
For retail investors, delisting means that trading AIH shares will become more complicated and riskier. The transition to the OTC market can lead to lower liquidity and wider bid-ask spreads, making it harder to buy and sell shares at favorable prices. Additionally, the transparency and regulatory oversight are generally less stringent on the OTC markets compared to major exchanges like Nasdaq, which can elevate the risk for investors.
Short-term, the stock price may experience significant volatility as institutional investors and funds that are restricted from holding OTC-traded stocks may sell off their shares. Long-term, if AIH successfully manages its operations and can demonstrate improved financial health, there is potential for recovery. However, the uncertainty associated with the OTC market and potential for decreased investor confidence are notable drawbacks.
Investors should closely monitor AIH's future financial statements and operational updates to gauge improvements and reassess the risk profile of their investment.
The delisting of AIH from Nasdaq and its expected transition to the OTC market highlights an essential shift in its market positioning. For the aesthetic medical industry, this move may impact the perception of AIH among potential customers and partners. Companies listed on major exchanges like Nasdaq often benefit from enhanced credibility and visibility, which can influence client trust and business opportunities.
AIH's commitment to enhancing operational management and efficiency is a positive sign. Nonetheless, the company must address any underlying issues that led to the delisting to regain stakeholder confidence. Retail investors should be cautious and consider the broader market dynamics in the aesthetic medical sector, including regulatory changes, competitive landscape and consumer trends.
Understanding the OTC market's operations and limitations will be important for investors. They should be prepared for higher volatility and potential liquidity challenges while keeping an eye on AIH's operational progress and market strategy.
SHENZHEN, China, May 20, 2024 (GLOBE NEWSWIRE) -- Aesthetic Medical International Holdings Group Limited (Nasdaq: AIH) (the “Company” or “AIH”), a leading provider of aesthetic medical services in China, today announced that it has received a determination letter of the Hearings Panel (the “Panel”) of The Nasdaq Capital Market (“Nasdaq”) dated May 17, 2024, notifying the Company that the Panel determined to delist the Company’s securities from Nasdaq, due to the failure to satisfy the continued listing conditions as previously disclosed. As a result, the Company expects that its securities will be suspended from trading at the open of business on May 21, 2024 and delisted from Nasdaq after the completion of Nasdaq’s filing of a Form 25 Notification of Delisting with the Securities and Exchange Commission after all appeal periods have expired. The Company does not intend to file an appeal of the determination.
Following the delisting, the Company expects that its American Depositary Shares (the “ADSs”) will be quoted on the “over the counter” market operated by OTC Markets Group Inc (the “OTC”) so that a trading market may continue to exist for its ADSs. There is no guarantee, however, that a broker will continue to make a market in the ADSs and that trading of the ADSs will continue on an OTC market or otherwise.
The delisting from Nasdaq will have no significant impact on the Company’s operations in the aesthetic medical industry in mainland China. The Company is committed to enhancing operational management and efficiency and aims to drive performance growth.
About Aesthetic Medical International Holdings Group Limited
AIH, known as “Peng’ai” in China, is a leading provider of aesthetic medical services in China. AIH operates through treatment centers that are spread across major cities in mainland China, with a major focus on the Guangdong-Hong Kong-Macau Greater Bay area and the Yangtze River Delta area. Leveraging over 20 years of clinical experience, AIH provides one-stop aesthetic service offerings, including surgical aesthetic treatments, non-surgical aesthetic treatments, general medical services, and other aesthetic services. For more information regarding the Company, please visit https://ir.aihgroup.net/.
Cautionary Statements
This press release contains “forward-looking statements.” These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “aims”, “future”, “intends”, “plans”, “believes”, “estimates”, “likely to” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These risks and uncertainties and others that relate to the Company’s business and financial condition are detailed from time to time in the Company’s SEC filings, and could cause the actual results to differ materially from those contained in any forward-looking statement. These forward-looking statements are made only as of the date indicated, and the Company undertakes no obligation to update or revise the information contained in any forward-looking statements, except as required under applicable law.
Investor Relations Contacts
For investor and media inquiries, please contact:
Aesthetic Medical International Holdings Group Limited
Email: ir@pengai.com.cn
Website: https://ir.aihgroup.net
FAQ
Why is AIH being delisted from Nasdaq?
When will AIH's securities be suspended from trading?
What will happen to AIH's securities after delisting from Nasdaq?
Will AIH appeal the Nasdaq delisting decision?
How will the Nasdaq delisting affect AIH's operations in China?
