Four Seasons Education Announces Receipt of NYSE Non-Compliance Letter Regarding ADS Trading Price

Rhea-AI Summary

Four Seasons Education (NYSE: FEDU) received a non-compliance letter from the NYSE on October 2, 2020, due to its American depositary shares trading below $1.00 for a consecutive 30-day period. The company has a six-month period to restore compliance by achieving an average closing price of at least $1.00. Failure to do so may result in suspension and delisting. Four Seasons Education aims to monitor market conditions while exploring options to address this issue. The company specializes in after-school education services, primarily focusing on math.

Positive

• Specializes in high-quality after-school education services
• Focus on enhancing student learning outcomes and cognitive abilities through proprietary content

Negative

• Received NYSE non-compliance letter due to shares trading below $1.00
• Must improve stock price within six months to avoid delisting

SHANGHAI, Oct. 21, 2020 /PRNewswire/ -- Four Seasons Education (Cayman) Inc. ("Four Seasons Education" or the "Company") (NYSE: FEDU), a leading Shanghai based educational company dedicated to providing comprehensive after-school education services with a focus on high-quality math education, today announced that it has received a letter from the New York Stock Exchange (the "NYSE") dated October 2, 2020, notifying Four Seasons Education that it is below compliance standards due to the trading price of Four Seasons Education's American depositary shares (the "ADSs"). 

Pursuant to NYSE rule 802.01C, a company will be considered to be below compliance standards if the average closing price of a security as reported on the consolidated tape is less than $1.00 over a consecutive 30 trading-day period. Once notified, the company must bring its share price and average share price back above $1.00 by six months following receipt of the notification. The company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period the company has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. In the event that at the expiration of the six-month cure period, both a $1.00 closing share price on the last trading day of the cure period and a $1.00 average closing share price over the 30 trading-day period ending on the last trading day of the cure period are not attained, the NYSE will commence suspension and delisting procedures.

To address this issue, Four Seasons Education intends to monitor the market conditions of its listed securities and is still considering its options.

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements, including the statements relating to the Company's future financial and operating results, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. Among other things, management's quotations and the Business Outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its ability to attract new students and retain existing students, its ability to deliver a satisfactory learning experience and improving their academic performance, PRC regulations and policies relating to the education industry in China, general economic conditions in China, and the Company's ability to meet the standards necessary to maintain listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. All information provided in this press release is as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by the Company is included in the Company's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F.

About Four Seasons Education (Cayman) Inc.

Four Seasons Education (Cayman) Inc. is a leading Shanghai based educational company dedicated to providing comprehensive after-school education services with a focus on high-quality math education. The Company's vision is to unlock students' intellectual potential through high quality and effective education that can profoundly benefit students' academic, career and life prospects. The Company provides educational programs that are primarily focused on elementary-level math and have expanded in recent years to also include other subjects, including physics, chemistry, and languages, and other grade levels, including kindergarten-level and middle school-level programs. The Company's proprietary educational content is designed to cultivate students' interests and enhance their cognitive and logic abilities. The Company develops its educational content through a systematic development process and updates it regularly based on student performance and feedback. Such process allows the Company to effectively drive better learning outcomes and serve students of different ages, aptitude levels and learning objectives. The Company's faculty is led by a group of experienced senior educators, including recognized scholars, award-winning teachers. Over the years, the quality of the Company's education services has been demonstrated by its student outstanding academic performance.

For more information, please visit http://ir.sijiedu.com.

For investor and media inquiries, please contact:

In China:
Four Seasons Education (Cayman) Inc.
Olivia Li
Tel: +86 (21) 6317-6678
E-mail: IR@fsesa.com

The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: fourseasons@tpg-ir.com

In the United States:
The Piacente Group, Inc.  
Brandi Piacente
Tel: +1-212-481-2050
E-mail: fourseasons@tpg-ir.com

 

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SOURCE Four Seasons Education Inc.

FAQ

What is the reason for Four Seasons Education's NYSE non-compliance letter dated October 2, 2020?

The non-compliance letter was issued because Four Seasons Education's American depositary shares traded below $1.00 over a consecutive 30-day period.

What steps must Four Seasons Education take to regain NYSE compliance?

The company must maintain a closing share price and average share price above $1.00 for at least 30 consecutive trading days within six months.

What could happen if Four Seasons Education does not meet the NYSE compliance standards?

If compliance is not achieved by the end of the six-month period, the NYSE will initiate suspension and delisting procedures.

What does Four Seasons Education focus on in its educational services?

The company provides after-school education with a primary focus on high-quality math education.

What is Four Seasons Education's stock symbol?

The stock symbol for Four Seasons Education is FEDU.