Global Mofy Regains Compliance with Nasdaq Minimum Bid Price Rule

Rhea-AI Summary

Global Mofy AI (Nasdaq: GMM), a generative AI-driven technology solutions provider, has successfully regained compliance with Nasdaq's minimum bid price requirement. The company, which focuses on virtual content production and 3D digital asset development, received confirmation from Nasdaq on December 11, 2024, that it has met the necessary criteria by maintaining a closing bid price of $1.00 or higher for at least 10 consecutive trading days between November 26 and December 10, 2024. This resolves the non-compliance notice issued on September 25, 2024, and Nasdaq has officially closed the matter.

Positive

• Regained Nasdaq listing compliance, eliminating delisting risk
• Maintained stock price above $1.00 for required period
• Matter officially closed by Nasdaq

Negative

• Previously failed to maintain minimum bid price requirement
• Required regulatory intervention to maintain listing status

Insights

Financial Analyst

This regulatory compliance update signifies a positive development for Global Mofy AI, as maintaining Nasdaq listing requirements is important for market visibility and investor confidence. The company successfully addressed the minimum bid price deficiency within a relatively short timeframe of less than three months, without requiring more drastic measures like a reverse stock split. This quick resolution suggests underlying market support for the stock and potentially improved investor sentiment. However, while regaining compliance removes an immediate threat to the company's listing status, investors should note that maintaining compliance will require sustained market performance above the $1.00 threshold. For a small-cap AI company with a market cap of about $10.3M, this milestone helps secure its position in the public markets but doesn't fundamentally change its business outlook.

BEIJING, Dec. 12, 2024 (GLOBE NEWSWIRE) -- Global Mofy AI Limited (the “Company” or “Global Mofy”) (Nasdaq: GMM), a generative AI-driven technology solutions provider engaged in virtual content production and the development of 3D digital assets for use in the broader digital content industry, announced today that on December 11, 2024, it received written notice from the Listing Qualifications Staff of the Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company has regained compliance with the minimum bid price requirement (the “Minimum Bid Price Requirement”), as set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market.

The Company had been notified by Nasdaq on September 25, 2024, that it was not in compliance with the Minimum Bid Price Requirement because its Class A ordinary shares had failed to maintain a minimum bid price of $1.00 for 30 consecutive business days. In order to regain compliance with the Minimum Bid Price Requirement, the Company was required to maintain a minimum closing bid price of $1.00 or more for at least 10 consecutive trading days, which was achieved during the period between November 26, 2024, and December 10, 2024. Accordingly, Nasdaq has determined that this matter is now closed.

About Global Mofy AI Limited
Global Mofy AI Limited (Nasdaq: GMM) is a generative AI-driven technology solutions provider engaged in virtual content production, and the development of digital assets for the digital content industry. Utilizing its proprietary "Mofy Lab" technology platform, which consists of interactive 3D and artificial intelligence ("AI") technology, the Company creates high-definition virtual versions of a wide range of physical world objects in 3D ranging from characters, objects to scenes and more. The digital assets can be used in different applications, including movies, TV series, AR/VR, animation, advertising, gaming, and more. Global Mofy Metaverse is one of the leading digital asset banks in China, which consists of more than 100,000 high-precision 3D digital assets. For more information, please visit www.globalmofy.cn/ or ir.globalmofy.cn.

Forward-Looking Statement
This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:
Global Mofy AI Ltd.
Investor Relations Department
ir@mof-vfx.com

FAQ

When did Global Mofy (GMM) regain Nasdaq compliance?

Global Mofy regained Nasdaq compliance on December 11, 2024, after maintaining a minimum closing bid price of $1.00 for 10 consecutive trading days between November 26 and December 10, 2024.

What was the minimum bid price requirement for GMM to maintain Nasdaq listing?

GMM was required to maintain a minimum closing bid price of $1.00 or more for at least 10 consecutive trading days to comply with Nasdaq's listing requirements.

When was GMM first notified of Nasdaq non-compliance?

GMM was notified of non-compliance with Nasdaq's minimum bid price requirement on September 25, 2024.

What caused GMM's Nasdaq listing compliance issues?

GMM failed to maintain a minimum bid price of $1.00 for 30 consecutive business days, which violated Nasdaq Listing Rule 5550(a)(2).