Smart Share Global Limited Announces Receipt of Minimum Bid Price Notice from Nasdaq

Rhea-AI Summary

Smart Share Global (Nasdaq: EM), known as Energy Monster, has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. The company's American depositary shares (ADSs) have traded below the $1.00 per share threshold for 34 consecutive business days. Energy Monster has been granted a 180-day compliance period until February 3, 2025, to regain compliance by maintaining a closing bid price of $1.00 or higher for at least ten consecutive business days.

If unsuccessful, the company may be eligible for an additional 180-day period if it meets other Nasdaq Capital Market listing requirements. Energy Monster assures that this notification does not affect its business operations and plans to take all reasonable measures to regain compliance within the grace period.

Positive

• Company granted 180-day compliance period to meet Nasdaq's minimum bid price requirement
• Potential eligibility for additional 180-day compliance period if other listing requirements are met
• No immediate impact on company's Nasdaq listing or ADS trading

Negative

• ADSs trading below $1.00 for 34 consecutive business days
• Risk of delisting from Nasdaq if compliance is not achieved
• Possible need for reverse stock split to meet minimum bid price requirement

Insights

Financial Analyst

Energy Monster's receipt of a Nasdaq minimum bid price notice signals potential delisting risks if not addressed. This situation often arises for companies experiencing prolonged share price declines, which can be indicative of underlying financial or operational challenges. The 180-day compliance period provides a buffer, but the company may need to consider strategic options:

• Improving financial performance to naturally boost share price
• Conducting a reverse stock split to artificially increase share price
• Exploring alternative listing options

Investors should closely monitor the company's efforts to regain compliance and assess the potential impact on liquidity and market perception. The situation underscores the importance of maintaining Nasdaq listing requirements for investor confidence and access to capital markets.

Market Research Analyst

The Nasdaq notice for Energy Monster reflects broader market challenges in the mobile device charging service sector. With a closing bid price below $1 for 34 consecutive business days, it suggests waning investor interest or concerns about the company's growth prospects. This could stem from:

• Increased competition in the mobile charging space
• Shifts in consumer behavior post-pandemic
• Potential saturation in key markets

The company's response to this notice will be crucial. If they can demonstrate a clear path to profitability or showcase innovative solutions, it could help restore investor confidence. However, failure to address underlying business challenges could lead to further stock price deterioration and potential delisting, impacting both institutional and retail investors.

SHANGHAI, Aug. 09, 2024 (GLOBE NEWSWIRE) -- Smart Share Global Limited (Nasdaq: EM) (“Energy Monster” or the “Company”), a consumer tech company providing mobile device charging service, today announced that it has received a notification letter from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) dated August 7, 2024, indicating that for the last 34 consecutive business days, the closing bid price of the Company’s American depositary shares (the “ADSs”) was below the minimum bid price of US$1.00 per share requirement set forth in Nasdaq Listing Rule 5550(a)(2). The Nasdaq notification letter has no current effect on the listing or trading of the Company’s ADSs on Nasdaq.

Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the Company is provided with a compliance period of 180 calendar days, or until February 3, 2025, to regain compliance under the Nasdaq Listing Rules. If at any time during the 180-day compliance period, the closing bid price of the Company’s ADSs is US$1.00 per share or higher for at least ten consecutive business days, Nasdaq will provide the Company written confirmation of compliance and the matter will be closed. In the event the Company does not regain compliance by February 3, 2025, subject to the determination by the staff of Nasdaq, the Company may be eligible for an additional 180-day compliance period if it meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the minimum bid price requirement. In this case, the Company will need to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary.

The Nasdaq notification letter does not affect the Company’s business operations, and the Company will take all reasonable measures to regain compliance within the prescribed grace period.

About Smart Share Global Limited

Smart Share Global Limited (Nasdaq: EM), or Energy Monster, is a consumer tech company with the mission to energize everyday life. The Company is the largest provider of mobile device charging service in China with the number one market share. The Company provides mobile device charging service through its power banks, which are placed in POIs such as entertainment venues, restaurants, shopping centers, hotels, transportation hubs and public spaces. Users may access the service by scanning the QR codes on Energy Monster’s cabinets to release the power banks. As of March 31, 2024, the Company had 9.4 million power banks in 1,245,000 POIs across more than 2,000 counties and county-level districts in China.

Safe Harbor Statement

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. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission (“SEC”), in its annual reports 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 the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Energy Monster’s strategies; its future business development, financial condition and results of operations; the impact of technological advancements on the pricing of and demand for its services; competition in the mobile device charging service industry; Chinese governmental policies and regulations affecting the mobile device charging service industry; changes in its revenues, costs or expenditures; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Contact Us

Investor Relations
Hansen Shi
ir@enmonster.com

FAQ

Why did Smart Share Global (EM) receive a notice from Nasdaq?

Energy Monster (EM) received a notice from Nasdaq because its ADS closing bid price was below the minimum requirement of $1.00 per share for 34 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).

What is the deadline for Smart Share Global (EM) to regain compliance with Nasdaq?

Energy Monster (EM) has until February 3, 2025, to regain compliance with Nasdaq's minimum bid price requirement.

How can Smart Share Global (EM) regain compliance with Nasdaq's listing rules?

Energy Monster (EM) can regain compliance if its ADS closing bid price is $1.00 or higher for at least ten consecutive business days during the 180-day compliance period.

What happens if Smart Share Global (EM) doesn't meet Nasdaq's requirements by February 3, 2025?

If Energy Monster (EM) doesn't meet requirements by February 3, 2025, it may be eligible for an additional 180-day compliance period if it meets other Nasdaq Capital Market listing standards.