Ever-Glory Announces Voluntary Delisting from the Nasdaq Global Market

Rhea-AI Summary

Ever-Glory International Group, Inc. (NASDAQ: EVK) announced its voluntary delisting from the NASDAQ Global Market following stockholder approval on December 18, 2022. The delisting, effective December 23, 2022, is due to the negative impact of COVID-19 on sales and high reporting costs under the Securities Exchange Act. The company's stock price fell from $6 to below $1, triggering non-compliance with NASDAQ's minimum bid price requirements. Trading will shift to OTC Pink as of December 27, 2022.

Positive

• Decision to delist may reduce compliance costs and administrative burdens for the company.

Negative

• Stock price has dropped from $6 to below $1, indicating significant devaluation.
• Non-compliance with NASDAQ listing requirements due to low stock price.

NANJING, China, Dec. 22, 2022 /PRNewswire/ -- Ever-Glory International Group, Inc. (the "Company" or "Ever-Glory") (NASDAQ: EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider, today announced that after stockholders' approval in the meeting on December 18, 2022, the Company has applied to voluntarily delist its common stock from the NASDAQ Global Market. December 23, 2022 will be the last trading day of the Company's common stock on Nasdaq Global Market.

The primary reason for this delisting is that the COVID-19 has negatively impacted the Company's wholesale and retail sales in the last three years, and that the Company has evaluated discretionary expenses and determined that the costs associated with its reporting obligations under the Securities Exchange Act of 1934, as amended, (the "Exchange Act") were no longer justified. In addition, due to the geo-economic impacts experienced by the China-based issuers in recent years and the policy of suppressing the U.S.-listed companies, the Company's stock price has been significantly undervalued and dropped from $6 to less than $1. On November 4, 2022, the Company received a notification letter from the Nasdaq Listing Qualifications Staff notifying the Company that the minimum bid price per share for its common stock has been below $1.00 for a period of 30 consecutive business days and the Company therefore no longer meets the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2). As of today, the Company has not regained compliance with its bid price deficiency.

The common stock will be trading on OTC Pink starting on December 27, 2022.

About Ever-Glory International Group, Inc.

Based in Nanjing, China, Ever-Glory International Group, Inc. is a retailer of branded fashion apparel and a leading global apparel supply chain solution provider. Ever-Glory is the first Chinese apparel Company listed on the American Stock Exchange (now named as NYSE MKT) in July 2008 and then transferred to The NASDAQ Global Market on December 31, 2015. Ever-Glory offers apparel to woman in China under its own brands "La go go", "Velwin" and "idole". Ever-Glory is also a leading global apparel supply chain solution provider with a focus on middle-to-high end casual wear, outerwear, and sportswear brands. Ever-Glory services a number of well-known brands and retail stores by providing a complete set of supply chain management services, including: fabric development and design, sampling, sourcing, quality control, manufacturing, logistics, customs clearance and distribution.

Forward-Looking Statements

Certain statements in this release and other written or oral statements made by or on behalf of Ever-Glory International Group, Inc. (the "Company") are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and the Company's future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including, without limitation, market acceptance of the Company's products and offerings, development and expansion of the Company's wholesale and retail operations, the Company's continued access to capital, currency exchange rate fluctuation, impacts from the ongoing COVID-19 pandemic on local, national and global economic conditions in general and on our industry and business in particular,  and other risks and uncertainties. The actual results the Company achieves (including, without limitation, the results stemming from the future implementation of the Company's strategies and the revenue, net income and new retail store projections set forth herein) may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties (many of which are beyond the Company's control). These statements are based on management's current expectations and speak only as of the date of such statements. Readers should carefully review the risks and uncertainties described in the Company's latest Annual Report on Form 10-K and other documents that the Company files from time to time with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

View original content:https://www.prnewswire.com/news-releases/ever-glory-announces-voluntary-delisting-from-the-nasdaq-global-market-301708855.html

SOURCE Ever-Glory International Group, Inc.

FAQ

What led to Ever-Glory's delisting from NASDAQ?

Ever-Glory's delisting was primarily due to the negative impact of COVID-19 on sales and increased reporting costs.

When will Ever-Glory's stock stop trading on NASDAQ?

Ever-Glory's common stock will stop trading on NASDAQ on December 23, 2022.

Where will Ever-Glory's stock trade after delisting?

After delisting, Ever-Glory's stock will trade on OTC Pink starting December 27, 2022.

What was Ever-Glory's stock price drop from and to?

Ever-Glory's stock price dropped from $6 to less than $1.

Why is Ever-Glory's stock considered undervalued?

The stock is considered undervalued due to geo-economic impacts on China-based issuers and suppressive policies affecting U.S.-listed companies.