China Online Education Group Announces Receipt of NYSE Non-Compliance Letter

Rhea-AI Summary

China Online Education Group (NYSE: COE) announced receipt of a non-compliance letter from the NYSE, dated December 20, 2021. The letter states that the company is under scrutiny due to its market capitalization, which averaged approximately US$39.3 million, and negative stockholders' equity of around US$134.2 million as of June 30, 2021. The NYSE requires COE to submit a business plan within 90 days, demonstrating compliance with listing standards within an 18-month period. The company is evaluating options to regain compliance.

Positive

• Company intends to comply with NYSE procedures.
• Opportunity to demonstrate compliance with a business plan.

Negative

• Market capitalization below the US$50 million threshold.
• Negative stockholders' equity of approximately US$134.2 million.

SHENZHEN, China, Dec. 21, 2021 /PRNewswire/ -- China Online Education Group ("51Talk," or the "Company") (NYSE: COE) today announced that it has received a letter dated December 20, 2021 (the "Letter") from the New York Stock Exchange (the "NYSE"), notifying the Company that it is below compliance standards due to the Company's total market capitalization and stockholders' equity.

Pursuant to applicable NYSE continued listing standards, a company would be considered "below criteria" by the NYSE if its total market capitalization is less than US$50 million over a 30 trading-day period and its stockholders' equity is less than US$50 million. A review of the current financial condition of the Company by the NYSE shows that, as of December 17, 2021, the Company's 30 trading-day average market capitalization was approximately US$39.3 million and its last reported stockholders' equity as of June 30, 2021 was approximately negative US$134.2 million. Accordingly, the Company is now subject to the procedures as set forth in Sections 801 and 802 of the NYSE Listed Company Manual, and is required to respond within 90 days of the Letter with a business plan that demonstrates compliance with the continued listing standard within 18 months of receipt of the Letter. The business plan will be reviewed for final disposition by the Listings Operations Committee of the NYSE.

To address this issue, the Company intends to comply with the applicable procedures and is considering its options to regain compliance.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements which are made pursuant to 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. 51Talk may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about 51Talk's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in 51Talk's filings with the SEC. All information provided in this press release is as of the date of this press release, and 51Talk does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About China Online Education Group

China Online Education Group (NYSE: COE) is a leading online education platform in China, with core expertise in English education. The Company's mission is to make quality education accessible and affordable. The Company's online and mobile education platforms enable students across China to take live interactive English lessons with overseas foreign teachers, on demand. The Company connects its students with a large pool of highly qualified foreign teachers that it assembled using a shared economy approach, and employs student and teacher feedback and data analytics to deliver a personalized learning experience to its students.

For investor and media inquiries, please contact:

China Online Education Group
Investor Relations
ir@51talk.com  

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SOURCE China Online Education Group

FAQ

What is the reason for COE's NYSE non-compliance letter?

COE received the letter for failing to meet market capitalization and stockholders' equity standards.

What are the financial figures mentioned in COE's non-compliance letter?

COE's market capitalization was approximately US$39.3 million, and its stockholders' equity was negative US$134.2 million.

What actions must COE take to address its NYSE compliance issue?

COE must submit a business plan within 90 days to demonstrate compliance within 18 months.

How does COE plan to regain compliance with the NYSE?

COE is considering various options to comply with NYSE requirements.