Golden Heaven Group Holdings Ltd. Announces Receipt of Nasdaq Delisting Determination and Plans to Appeal

Rhea-AI Summary

Golden Heaven Group Holdings (GDHG), a Chinese amusement park operator, has received a delisting determination from Nasdaq due to failure to meet the $1.00 minimum bid price requirement. The company's stock price was $0.12 as of August 8, 2024. Golden Heaven plans to appeal the decision by August 16, 2024, which will temporarily stay the suspension of its securities. If unsuccessful, the company's Class A ordinary shares will be suspended from trading on August 20, 2024. Golden Heaven is considering various options, including a reverse stock split, to address the situation and maintain its Nasdaq listing.

Positive

• Company plans to appeal the delisting determination
• Considering options like reverse stock split to maintain listing

Negative

• Received Nasdaq delisting determination
• Failed to meet $1.00 minimum bid price requirement
• Stock price at $0.12 as of August 8, 2024
• Risk of suspension from Nasdaq trading on August 20, 2024
• Not eligible for additional 180-day compliance period

Insights

Financial Analyst

The delisting notice from Nasdaq is a serious concern for Golden Heaven Group Holdings The company's failure to maintain a minimum bid price of $1.00 per share reflects significant market skepticism. With the current share price at just $0.12, the company faces a steep challenge to regain compliance. The planned appeal and consideration of a reverse stock split are standard tactics, but their effectiveness is questionable given the depth of the price decline. This situation often indicates underlying financial or operational issues, which investors should scrutinize carefully. The potential delisting could lead to reduced liquidity and institutional investment, further pressuring the stock price.

Legal Expert

The delisting process follows Nasdaq's established procedures, giving Golden Heaven due process. The company's right to appeal and the automatic stay of delisting pending the hearing are critical protections. However, the Panel's decisions typically favor Nasdaq unless the company can demonstrate a clear path to compliance. The tight timeline - appeal by August 16, potential suspension on August 20 - puts significant pressure on Golden Heaven. If delisted, the company may face reporting challenges and potential covenant breaches in any agreements tied to its listed status. Shareholders should be aware that delisting often triggers automatic sale provisions for some institutional investors, potentially exacerbating selling pressure.

Market Research Analyst

The potential delisting of Golden Heaven from Nasdaq could have far-reaching implications for the company's market position. Operating in China's amusement park sector, which faces challenges from changing consumer behaviors and economic pressures, the company's low share price may reflect broader industry concerns. The delisting threat could erode investor confidence, making it harder to raise capital for growth or operations. This is particularly important in the capital-intensive amusement park industry. Moreover, the loss of Nasdaq listing could reduce visibility among international investors, potentially limiting the company's ability to tap into global capital markets. This situation underscores the importance of maintaining investor relations and financial performance in highly competitive and evolving markets.

NANPING, China, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Golden Heaven Group Holdings Ltd. ("Golden Heaven" or the "Company") (Nasdaq: GDHG), an amusement park operator in China, today announced the Company received a staff determination letter (the “Letter”), on August 9, 2024, from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that, due to the Company's failure to regain compliance with the minimum bid price of $1.00 per share requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Requirement"), Nasdaq has determined (the “Determination”) that the Company's securities will be scheduled for delisting from Nasdaq unless the Company requests an appeal of such Determination to a Hearings Panel (the "Panel").

On February 8, 2024, the Company received a letter from Nasdaq (the "Notice"), notifying the Company that, based upon the closing bid price of its Class A ordinary shares for the last 30 consecutive business days preceding the Notice, the Company was not in compliance with the Minimum Bid Requirement. In accordance with Listing Rule 5810(c)(3)(A), the Notice provided the Company a period of 180 calendar days from the date of the Notice, or until August 6, 2024, to regain compliance with the Minimum Bid Requirement.

According to the Letter, the Company had not regained compliance with the Minimum Bid Requirement as of August 6, 2024, and is not eligible for a second 180-day period. Specifically, Nasdaq does not believe the Company will cure the deficiency and sustain compliance with the Minimum Bid Requirement. In that regard, Nasdaq notes in the Letter that, as of August 8, 2024, the closing bid price of the Company’s Class A ordinary shares was $0.12. Unless the Company requests an appeal of the Determination by August 16, 2024, the Company’s Class A ordinary shares will be suspended at the opening of business on August 20, 2024, and a Form 25-NSE will be filed with the U.S. Securities and Exchange Commission, which will remove the Company’s Class A ordinary shares from listing and registration on Nasdaq.

The Company plans to timely appeal the Determination to the Panel in due course. A hearing request will stay the suspension of the Company’s securities and the filing of Form 25-NSE pending the Panel’s decision. The Company is considering all options available to it, including a reverse stock split, and will provide its shareholders with material updates when they are available.

About Golden Heaven Group Holdings Ltd.

The Company is an offshore holding company incorporated in the Cayman Islands with no material operations of its own. Through its Chinese operating entities, the Company manages and operates amusement parks, water parks and complementary recreational facilities. The parks offer a broad selection of exhilarating and recreational experiences, including both thrilling and family-friendly rides, water attractions, gourmet festivals, circus performances, and high-tech facilities. For more information, please visit the Company's website at https://ir.jsyoule.com/.

Forward-Looking Statements

This press release contains "forward-looking statements". Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or similar expressions. The Company undertakes no obligation to update or revise publicly 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 such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:
Golden Heaven Group Holdings Ltd.
Email: group@jsyoule.com

Ascent Investors Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: tina.xiao@ascent-ir.com

FAQ

Why is Golden Heaven Group Holdings (GDHG) facing delisting from Nasdaq?

Golden Heaven Group Holdings (GDHG) is facing delisting from Nasdaq because it failed to meet the minimum bid price requirement of $1.00 per share for continued listing on The Nasdaq Capital Market.

What is the current stock price of Golden Heaven Group Holdings (GDHG)?

As of August 8, 2024, the closing bid price of Golden Heaven Group Holdings (GDHG) Class A ordinary shares was $0.12.

When will Golden Heaven Group Holdings (GDHG) be suspended from Nasdaq trading?

If Golden Heaven Group Holdings (GDHG) does not appeal the delisting determination, its Class A ordinary shares will be suspended from Nasdaq trading at the opening of business on August 20, 2024.

What options is Golden Heaven Group Holdings (GDHG) considering to maintain its Nasdaq listing?

Golden Heaven Group Holdings (GDHG) is considering various options to maintain its Nasdaq listing, including a reverse stock split.