Bit Brother Limited Receives Notice of Delisting from Nasdaq
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- The company is facing potential delisting of its securities from Nasdaq, which could adversely affect the liquidity and marketability of its ordinary shares.
Insights
The notice of potential delisting received by Bit Brother Limited from Nasdaq is a significant event that warrants investor attention. Delisting from a major exchange like Nasdaq can severely affect a company's stock liquidity and marketability. Typically, delisting leads to a reduction in investor confidence and may result in a lower stock price due to the perceived increase in risk and decreased visibility among investors.
Furthermore, the issuance of warrants with cashless exercise provisions can be a red flag for investors as it may indicate a company's need for financing that could potentially dilute existing shareholders' equity. These transactions have raised public interest concerns, which suggests that there could be broader implications for the market perception of the company's governance and financial health.
While the company has received a notice of compliance with the Bid Price Rules, indicating that it has remedied the previous issue of a low bid price, the ongoing concerns about the warrants could overshadow this positive development. Investors should closely monitor the outcome of the upcoming Nasdaq Hearings Panel to assess the potential impact on their holdings.
The legal implications of the delisting notice for Bit Brother Limited are multifaceted. Under Nasdaq Listing Rule 5101, Nasdaq has broad discretionary authority to deny continued listing to protect investors and the public interest. The issuance of warrants with cashless exercise provisions is a legal maneuver that raises questions about the company's compliance with securities regulations and governance standards.
The upcoming hearing before the Nasdaq Hearings Panel will be a critical juncture for the company, as it will provide an opportunity for Bit Brother to address the concerns raised by Nasdaq. The outcome of the hearing will determine if the company can maintain its listing, which is crucial for its ability to raise capital and maintain shareholder value. The legal process also underscores the importance of transparency and regulatory compliance for publicly traded companies.
From a market research perspective, the potential delisting of Bit Brother Limited's securities from Nasdaq could have broader implications for the sector in which the company operates. Delisting could signal to the market that companies with similar financial structures or practices may also be at risk of facing increased scrutiny from exchange regulators.
An analysis of market trends indicates that investor sentiment can be significantly influenced by regulatory actions and a delisting could prompt a reevaluation of similar stocks by investors. Additionally, the company's ability to rebound from this notice will be indicative of the resilience and adaptability of businesses within this sector when faced with regulatory challenges.
CHANGSHA, China, Feb. 02, 2024 (GLOBE NEWSWIRE) -- Bit Brother Limited ("Bit Brother, " "We" or the "Company") (Nasdaq: BETS), today announced that it has received a notice (the “Notice”) from the Nasdaq Stock Market (“Nasdaq”) on January 30, 2024 notifying the Company that the Nasdaq Staff (“Staff”) had determined to delist the Company’s securities from Nasdaq in accordance with its authority under Nasdaq Listing Rule 5101. Nasdaq based its determination upon concerns raised by the issuance of certain warrants with cashless exercise provisions in two registered offerings by the Company on October 25, 2023 and December 5, 2023 and the associated public interest concerns raised by such transactions.
The notice has no immediate impact on the Company’s listing and trading, as Nasdaq has granted the Company a hearing before the Nasdaq Hearings Panel (the “Panel”) scheduled to be held on February 27, 2024 (the “Hearing”). Nasdaq will continue to stay any suspension or delisting action pending the completion of the hearing process. There can be no assurance that the Panel will grant the Company’s request to demonstrate compliance of continued listing requirement or that the Company will be able meet the continued listing requirement during any compliance period or in the future. If the Panel does not grant the Company’s request to demonstrate compliance, its ordinary shares will be subject to delisting and the liquidity and marketability of the Company’s ordinary shares would be adversely affected.
As previously disclosed on November 15, 2023, the Company had received a delisting notice from Nasdaq based upon the Company's non-compliance with Nasdaq Listing Rule 5550(a)(2) and 5810(c)(3)(A)(iii) (the “Bid Price Rules”), as the Company's securities had a closing bid price of
This announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a delisting notification.
About Bit Brother Limited
Bit Brother Ltd is a multifaceted corporation with operations spanning business management in China and blockchain and cryptocurrency ventures in the United States. Within the U.S. jurisdiction, the company strategically manages and integrates cryptocurrency mining facilities. With a dedicated team of specialists, company has successfully expanded two mining ventures and is committed to further growth. For more information, please visit: www.bitbrother.com.
Forward-Looking Statements Disclaimer
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
SOURCE Bit Brother Limited
Contact: contactus@bitbrother.com, +86-0731-82290658
FAQ
Why did Bit Brother Limited receive a notice from Nasdaq?
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