CLPS Incorporation Receives Nasdaq Notification Regarding Minimum Bid Price Requirements
CLPS has received a notice from Nasdaq dated June 10, 2024, regarding its non-compliance with the minimum bid price requirement, as its common shares closed below $1.00 for 30 consecutive trading days.
The company has until December 9, 2024, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days. If this is achieved, Nasdaq will confirm compliance in writing. Failing this, CLPS may seek an additional 180-day extension by moving to the Nasdaq Capital Market and possibly implementing a reverse stock split.
This notification does not affect the listing or trading of CLPS shares, and the company is taking steps to address the issue.
- Nasdaq notification does not affect the current listing or trading of CLPS shares.
- CLPS has 180 days to regain compliance, providing ample time for corrective measures.
- Potential eligibility for an additional 180-day compliance period if necessary.
- Company is committed to taking all reasonable measures to regain compliance.
- CLPS's shares have closed below $1.00 for 30 consecutive trading days.
- Failure to regain compliance may result in delisting from the Nasdaq Global Market.
- Possible need for a reverse stock split, which could dilute shareholder value.
Insights
CLPS Incorporation's stock falling below the
The 180-day compliance period is a typical response from Nasdaq, giving companies time to rectify the situation. The consequence of not regaining compliance could be a reverse stock split, which might artificially inflate the share price but doesn't address underlying business issues.
Potential impacts:
- Short-Term: Increased volatility and possible speculative trading as investors react to the news.
- Long-Term: The company's ability to sustain a higher share price without operational improvements could be questionable, raising concerns about its overall financial health.
Investors should monitor the company’s efforts to regain compliance, looking for concrete steps taken by management beyond superficial measures like stock splits.
Market perception of CLPS Incorporation will be significantly influenced by this Nasdaq notification. Typically, a sustained bid price below
Furthermore, the market may scrutinize the company's financial health and strategic plans more closely. Questions will arise about the company's ability to generate sustainable growth and profitability.
Investors should be cautious and look for signs that CLPS is addressing any fundamental issues rather than relying solely on stock price management tactics.
Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the Company has been granted a 180-calendar day compliance period, until December 9, 2024, to regain compliance with the minimum bid price requirement. To regain compliance, CLPS's common shares must have a closing bid price of at least
In the event that the Company does not regain compliance by December 9, 2024, it may be eligible for an additional 180-day compliance period by transferring to the Nasdaq Capital Market from the Nasdaq Global Market, provided it meets the necessary listing requirements, and notifying Nasdaq of its intent to cure the deficiency by effecting a reverse stock split if necessary.
The Nasdaq notification letter will have no effect on the Company's business operations, and CLPS is committed to taking all reasonable measures to regain compliance with Nasdaq's minimum bid price requirement.
About CLPS Incorporation
Headquartered in
Forward-Looking Statements
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance. Known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, may cause the actual results and performance of the Company to be materially different from such forward-looking statements. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's expectations of the Company's future growth, performance and results of operations, the Company's ability to capitalize on various commercial, M&A, technology and other related opportunities and initiatives, as well as the risks and uncertainties described in the Company's most recently filed SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
Contact:
CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com
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SOURCE CLPS
FAQ
What did Nasdaq notify CLPS about on June 10, 2024?
What is the deadline for CLPS to regain compliance with Nasdaq's minimum bid price requirement?
What happens if CLPS does not regain compliance by December 9, 2024?
Will the Nasdaq notification affect the trading of CLPS shares?
What measures is CLPS taking to address the Nasdaq notification?
