FangDD Regains Compliance with Nasdaq Minimum Bid Price Requirement

Rhea-AI Summary

FangDD Network Group (Nasdaq: DUO) has announced that it has regained compliance with Nasdaq's minimum bid price requirement. The company received a notification letter from Nasdaq on October 10, 2024, confirming that the closing bid price of FangDD's Class A ordinary shares had been at $1.00 per share or greater for ten consecutive business days, from September 26 through October 9, 2024.

This development resolves the non-compliance issue that was initially flagged on December 13, 2023, when FangDD was notified that it had fallen below the minimum bid price requirement as per Nasdaq Listing Rule 5550(a)(2). The company's American depositary shares had previously closed below $1.00 per share for 30 consecutive business days. With this compliance notice, Nasdaq has confirmed that the matter is now closed.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• Closing bid price of Class A ordinary shares maintained at $1.00 or above for ten consecutive business days
• Resolved non-compliance issue, potentially avoiding delisting risk

Negative

• None.

Insights

Financial Analyst

Regaining compliance with Nasdaq's minimum bid price requirement is a positive development for FangDD, albeit with immediate financial impact. This news removes the immediate threat of delisting, which could have severely impacted investor confidence and the company's ability to raise capital.

However, it's important to note that maintaining compliance is an ongoing challenge. The company's $9.85 million market cap suggests it's still a micro-cap stock, which often face volatility and liquidity issues. The fact that it took nearly 10 months to regain compliance indicates potential underlying challenges in sustaining investor interest and share price.

While this news may provide a short-term boost to investor sentiment, it doesn't address fundamental business performance or growth prospects. Investors should look for upcoming financial results and operational updates to gauge the company's true health and potential for long-term value creation.

SHENZHEN, China, Oct. 11, 2024 (GLOBE NEWSWIRE) -- Fangdd Network Group Ltd. (“FangDD” or the “Company”) (Nasdaq: DUO) today announced that the Company received a notification letter (the “Compliance Notice”) from the Nasdaq Stock Market LLC (“Nasdaq”), dated October 10, 2024, indicating that the Company regained compliance with the minimum bid price requirement set forth under the Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”).

As previously announced, the Company was notified by Nasdaq on December 13, 2023 that the Company was not in compliance with the Minimum Bid Price Requirement as the bid price of the Company’s American depositary shares (“ADSs”) previously representing the Company’s Class A ordinary shares closed below US$1.00 per share for 30 consecutive business days. In its Compliance Notice, Nasdaq has confirmed that for the ten consecutive business days, from September 26 through October 9, 2024, the closing bid price of the Company’s Class A ordinary shares has been at $1.00 per share or greater. Accordingly, the Company has regained compliance with the Nasdaq Listing Rule 5550(a)(2), and the matter is closed.

About FangDD

Fangdd Network Group Ltd. (Nasdaq: DUO) is a customer-oriented property technology company in China, focusing on providing real estate transaction digitalization services. Through innovative use of mobile internet, cloud, big data, artificial intelligence, among others, FangDD has fundamentally revolutionized the way real estate transaction participants conduct their business through a suite of modular products and solutions powered by SaaS tools, products and technology. For more information, please visit http://ir.fangdd.com.

Safe Harbor Statement

This announcement 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 “aim,” “anticipate,” “believe,” “estimate,” “expect,” “hope,” “going forward,” “intend,” “ought to,” “plan,” “project,” “potential,” “seek,” “may,” “might,” “can,” “could,” “will,” “would,” “shall,” “should,” “is likely to” and the negative form of these words and other similar expressions. Among other things, statements that are not historical facts, including statements about the Company’s beliefs and expectations are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. All information provided in this press release is as of the date of this press release and is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Ms. Linda Li
Director, Capital Markets Department
Phone: +86-0755-2699-8968
E-mail: ir@fangdd.com

FAQ

When did FangDD (DUO) regain compliance with Nasdaq's minimum bid price requirement?

FangDD (DUO) regained compliance with Nasdaq's minimum bid price requirement on October 10, 2024, as confirmed by a notification letter from Nasdaq.

What was the minimum bid price requirement that FangDD (DUO) had to meet?

FangDD (DUO) had to maintain a closing bid price of $1.00 per share or greater for its Class A ordinary shares for at least ten consecutive business days to regain compliance with Nasdaq Listing Rule 5550(a)(2).

How long was FangDD (DUO) out of compliance with Nasdaq's minimum bid price requirement?

FangDD (DUO) was notified of non-compliance on December 13, 2023, and regained compliance by October 9, 2024, a period of approximately 10 months.

What could have happened if FangDD (DUO) failed to regain compliance with Nasdaq's minimum bid price requirement?

If FangDD (DUO) had failed to regain compliance, it could have faced potential delisting from the Nasdaq stock exchange, which would have significant implications for the company and its shareholders.