Smart Share Global Limited Regains Compliance with the Nasdaq Minimum Bid Price Requirement

Rhea-AI Summary

Energy Monster (Nasdaq: EM) has successfully regained compliance with Nasdaq's minimum bid price requirement. The company, which provides mobile device charging services, received confirmation from Nasdaq on January 31, 2025, that it has met the minimum bid price requirement of US$1.00 per share.

This development follows a notification received on August 9, 2024, when Energy Monster was given a 180-day compliance period until February 3, 2025, to meet the requirement after its ADS price fell below US$1.00 for 30 consecutive business days. The company's ADSs maintained a closing bid price of US$1.00 or higher for 10 consecutive business days from January 16 to January 30, 2025, satisfying Nasdaq's compliance criteria.

Positive

• Regained Nasdaq listing compliance, eliminating delisting risk
• Maintained ADS price above $1.00 for required compliance period

Negative

• Previously traded below $1.00 threshold, triggering compliance issues

Insights

Financial Markets Compliance Expert

Regaining Nasdaq compliance marks a significant milestone for Energy Monster, effectively removing a major regulatory overhang that could have severely impacted investor confidence and market accessibility. This development carries several important implications:

Market Access and Liquidity
Maintaining Nasdaq listing ensures continued access to U.S. capital markets and preserves trading liquidity - important factors for institutional investors who often have mandate restrictions against investing in non-compliant or OTC-traded securities. This compliance status helps protect shareholder value by avoiding the potential market disruption and value erosion typically associated with delisting events.

Institutional Investment Potential
The resolution of compliance issues typically triggers renewed interest from institutional investors who may have been sidelined by compliance concerns. With a market cap of $298.5 million, Energy Monster now presents a cleaner investment case for both institutional and retail investors focused on the growing mobile device charging service sector in China.

Strategic Positioning
For Chinese companies listed in the U.S., maintaining Nasdaq compliance amid regulatory scrutiny carries additional significance. It demonstrates corporate governance standards and market stability at a time when many Chinese ADRs face heightened scrutiny. The company's ability to resolve this issue relatively quickly and well before the deadline reflects positively on management's capability to address regulatory challenges.

SHANGHAI, Feb. 03, 2025 (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 received a notification letter (the “Compliance Notification”) from the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”), dated January 31, 2025, notifying the Company that it has regained compliance with the requirement of minimum bid price of US$1.00 per share set forth under Nasdaq Listing Rule 5550(a)(2).

As announced on August 9, 2024, the Company received a letter from Nasdaq indicating that it was not in compliance with Nasdaq Listing Rule 5550(a)(2), as the closing bid price of its American Depositary Shares (the “ADSs”) had been below US$1.00 per ADS for the previous 30 consecutive business days. The Company was provided with a compliance period of 180 calendar days, or until February 3, 2025, to regain compliance with the minimum bid price requirement.

On January 31, 2025, Nasdaq confirmed in the Compliance Notification that the closing bid price of the Company’s ADSs has been at US$1.00 per share or higher for the 10 consecutive business days from January 16, 2025 to January 30, 2025. Accordingly, the Company has regained compliance with the minimum bid price requirement, and the matter is now closed.

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 June 30, 2024, the Company had 9.5 million power banks in 1,267,000 POIs across more than 2,100 counties and county-level districts in China.

Contact Us
Investor Relations
Hansen Shi
ir@enmonster.com

FAQ

When did Energy Monster (EM) regain Nasdaq compliance?

Energy Monster regained Nasdaq compliance on January 31, 2025, after maintaining its ADS price above $1.00 for 10 consecutive business days from January 16 to January 30, 2025.

What was the minimum bid price requirement for Energy Monster (EM) to maintain Nasdaq listing?

Energy Monster needed to maintain a minimum bid price of US$1.00 per ADS to comply with Nasdaq Listing Rule 5550(a)(2).

How long was Energy Monster (EM) given to regain Nasdaq compliance?

Energy Monster was given a 180-day compliance period, from August 9, 2024, until February 3, 2025, to regain compliance with the minimum bid price requirement.

What triggered Energy Monster's (EM) initial Nasdaq compliance issue?

The compliance issue was triggered when Energy Monster's ADS closing bid price remained below US$1.00 for 30 consecutive business days, as reported on August 9, 2024.