Happiness Development Group Limited Received Nasdaq Notification Letter Regarding Bid Price Deficiency

Rhea-AI Summary

Happiness Development Group Limited (HAPP) has received a notification from Nasdaq due to its Class A ordinary shares trading below the $1.00 minimum bid price for 30 consecutive business days. The company has until May 10, 2022, to regain compliance by achieving a closing bid price of at least $1.00 for 10 consecutive business days. If non-compliance persists, HAPP may qualify for an additional 180 days to rectify the issue, potentially through a reverse stock split. This notification does not immediately affect the listing status.

Positive

• The company has until May 10, 2022, to regain compliance with Nasdaq listing rules.
• Eligible for an additional 180 days for compliance if necessary criteria are met.

Negative

• Current share price has been below $1.00, indicating ongoing financial challenges.
• Potential for a reverse stock split may dilute shareholder value.

NANPING, China, Nov. 16, 2021 /PRNewswire/ -- Happiness Development Group Limited ("HAPP" or the "Company"), (NASDAQ: HAPP) announced today that the Company received a notification letter from the Nasdaq Listing Qualifications Staff of The NASDAQ Stock Market LLC ("Nasdaq") on November 11, 2021, notifying the Company that the minimum bid price per share for its Class A ordinary shares 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).

The notification received has no immediate effect on the listing of the Company's Class A ordinary shares on Nasdaq. Under the Nasdaq Listing Rules, the Company has until May 10, 2022 to regain compliance. If at any time during such 180-day period the closing bid price of the Company's Class A ordinary shares is at least $1 for a minimum of 10 consecutive business days, Nasdaq will provide the Company written confirmation of compliance.

If the Company does not regain compliance during such 180-day period, the Company may be eligible for an additional 180 calendar days, provided that the Company meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq except for Nasdaq Listing Rule 5550(a)(2), and provide a written notice of its intention to cure this deficiency during the second compliance period, by effecting a reverse stock split, if necessary. 

About Happiness Biotech Group Limited

Headquartered in Nanping, China, Happiness Biotech Group Limited currently has three business lines: nutraceutical and dietary supplements, e-commerce and automobile sales. The nutrition and dietary supplements business is focusing on the research, development, manufacture and marketing of various products made from Chinese herbal extracts and other ingredients. Over the past 17 years, we have established a product portfolio consisting of 23 PRC National Medical Products Administration registered "Blue-Cap" SKUs of nutraceutical and dietary supplements products. Our e-commerce business focuses on offering e-commerce solutions, including advertising and information technology services to small and medium-sized enterprises in China. We also run our online stores which carries our products of dietary supplements and other selected products sourced from the small and medium-sized enterprises in China. Our mission for the e-commerce business is to enable small and medium-sized enterprises to fully leverage the power of e-commerce to grow rapidly. Our automobile sales adopts the B2B business model and is committed to optimizing the auto supply chain by connecting car dealers on our online automobile sales platform and offering the overall services for purchasing automobiles. For more information, please visit: www.happ.org.cn

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. 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. 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 following:  the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China, the COVID-19 outbreak and its impact on our operations and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission.  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 U.S. Securities and Exchange Commission, 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.

 

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SOURCE Happiness Biotech Group Limited

FAQ

What notification did Happiness Development Group Limited receive from Nasdaq regarding HAPP?

HAPP received a notification indicating that its Class A ordinary shares have been below the $1.00 minimum bid price for 30 consecutive business days.

What does Happiness Development Group need to do to maintain its Nasdaq listing for HAPP?

HAPP must achieve a closing bid price of at least $1.00 for 10 consecutive business days by May 10, 2022.

What happens if HAPP does not regain compliance with Nasdaq listing rules?

If HAPP fails to regain compliance, it may qualify for an additional 180 days to cure the deficiency.

How might a reverse stock split affect HAPP shareholders?

A reverse stock split could dilute the value of shareholders' holdings if implemented.