Hanryu Holdings, Inc. Announces Receipt of a Delinquency Compliance Alert Notice from Nasdaq

Rhea-AI Summary

Hanryu Holdings (NASDAQ:HRYU) has received a delinquency compliance alert from Nasdaq due to its failure to timely file its Q2 2024 10-Q. This puts the company in non-compliance with Nasdaq's continued listing requirements under Rule 5250(c)(1). Hanryu has until September 4, 2024, to submit an updated plan to regain compliance.

This alert follows a previous notification on April 18, 2024, regarding the company's late filing of its 2023 Annual Report. Although Hanryu filed the 10-K on July 16, 2024, the company now has a maximum of 180 calendar days from the initial delinquent filing's due date (until October 14, 2024) to regain compliance with all subsequent delinquent filings.

Positive

• Company filed its previously delayed 2023 Annual Report on July 16, 2024

Negative

• Received delinquency compliance alert from Nasdaq for late Q2 2024 10-Q filing
• Non-compliance with Nasdaq's continued listing requirements
• Risk of potential delisting if compliance is not regained by October 14, 2024

Insights

Financial Analyst

This delinquency compliance alert from Nasdaq is a significant red flag for Hanryu Holdings, Inc. (NASDAQ:HRYU). The company's failure to file its Q2 2024 10-Q on time, following a previous delay in filing its 2023 annual report, raises serious concerns about its financial reporting capabilities and overall governance. This pattern of late filings could indicate deeper issues, such as internal control weaknesses or potential financial irregularities.

Investors should be wary, as continued non-compliance with Nasdaq listing rules could lead to delisting, which would severely impact the stock's liquidity and value. The company now faces a tight deadline (October 14, 2024) to regain full compliance, adding pressure to its operations. While Hanryu has until September 4 to submit an updated compliance plan, the repeated delays suggest potential underlying problems that may take time to resolve, posing significant risks to shareholders in the short to medium term.

Legal Expert

The receipt of a delinquency compliance alert from Nasdaq is a serious legal and regulatory issue for Hanryu Holdings. This non-compliance with Nasdaq Listing Rule 5250(c)(1) puts the company at risk of potential enforcement actions and penalties. The company's failure to file timely reports violates SEC regulations, which could lead to investigations and possible legal consequences.

Hanryu's situation is particularly precarious given its history of late filings. The 180-day maximum exception period ending October 14, 2024, leaves little room for error. If the company fails to regain compliance within this timeframe, it could face delisting procedures, which would have severe implications for its status as a public company. Shareholders should closely monitor the company's ability to submit and execute a credible compliance plan by the September 4 deadline, as this will be important for Hanryu's future on the Nasdaq exchange.

Market Research Analyst

Hanryu Holdings' repeated failures to meet filing deadlines could significantly impact investor confidence and market perception. As a company operating in the competitive media-tech and social media space, timely and transparent financial reporting is crucial. The delays in filing both annual and quarterly reports suggest potential operational or financial instabilities that could be deterring investors and partners.

The market typically reacts negatively to such compliance issues, often leading to increased stock volatility and decreased valuation. Hanryu's focus on K-culture fans globally through its FANTOO platform requires consistent growth and user engagement, which may be hampered if resources are diverted to addressing these regulatory challenges. Competitors could capitalize on Hanryu's struggles, potentially eroding its market position. Investors should carefully assess the company's ability to overcome these hurdles and maintain its growth trajectory in the face of these regulatory pressures.

SEOUL, KOREA / ACCESSWIRE / August 23, 2024 / Seoul, Republic of South Korea, August 23, 2024 -- Hanryu Holdings, Inc. (NASDAQ:HRYU) ("Hanryu" or the "Company"), a media-tech company and creator of FANTOO, an all-in-one social media experience connecting k-culture fans globally, today announced that on August 20, 2024, it received a delinquency compliance alert notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") advising the Company that due to the Company's failure to timely file its Quarterly Report on Form 10-Q for the period ended June 30, 2024 (the "Q2 2024 10-Q") with the Securities and Exchange Commission (the "SEC"), the Company is not in compliance with Nasdaq's continued listing requirements under Nasdaq Listing Rule 5250(c)(1) (the "Rule"), which requires the timely filing of all required periodic reports with the SEC.

As previously reported, on April 18, 2024, Nasdaq notified the Company that it no longer complied with the Rule as it had not yet filed its Annual Report on Form 10-K ("Form 10-K") for the period ended December 31, 2023 ("Initial Delinquent Filing"). The Company has since filed its Form 10-K on July 16, 2024, but as result of the Initial Delinquent Filing, any additional exception to allow the Company to regain compliance with all subsequent delinquent filings, is limited to a maximum of 180 calendar days from the due date of the Initial Delinquent Filing, or October 14, 2024.

With respect to the Q2 2024 10-Q, Nasdaq provided the Company until September 4, 2024, to submit an update to its original plan to regain compliance with the Rule (the "Plan"). The Company intends to submit the Plan to Nasdaq by September 4, 2024.

About Hanryu Holdings, Inc.

Hanryu Holdings, Inc., is the creator of the engaging and innovative social media platform, "FANTOO" FANTOO connects users around the world that share similar interests by providing distinctive service offerings, technologies, applications, and websites. Through FANTOO, we provide a global multi-media platform for our users to interact with other like-minded users, to share their appreciation of various types of entertainment and cultures, create their own content, enjoy other users' content, engage in commerce, and experience a "fandom" community we believe is unlike any other. For more information, please visit www.hanryuholdings.biz.

Forward-Looking Statements

This announcement contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the statements about the Company's ability to regain compliance with the Rule and timing of submission of the Plan to Nasdaq. The words "will," "intend," "estimate," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. While the Company believes its plans, intentions and expectations reflected in those forward-looking statements are reasonable, these plans, intentions or expectations may not be achieved. The Company's actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. For information about the factors that could cause such differences, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2023, including the information discussed under the captions "Item 1 Business," "Item 1A. Risk Factors" and "Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations," as well as the Company's various other filings with the SEC. Given these uncertainties, you should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update any forward-looking statement.

Company Contact:

Hanryu Holdings, Inc.
Taehoon Kim
ktn@hanryuholdings.biz

Investor Contact:

Hanryu Holdings, Inc.
Taehoon Kim
ktn@hanryuholdings.biz

SOURCE: Hanryu Holdings Inc.

View the original press release on accesswire.com

FAQ

Why did Hanryu Holdings (HRYU) receive a delinquency compliance alert from Nasdaq?

Hanryu Holdings (HRYU) received a delinquency compliance alert from Nasdaq on August 20, 2024, due to its failure to timely file its Quarterly Report on Form 10-Q for the period ended June 30, 2024.

What is the deadline for Hanryu Holdings (HRYU) to submit an updated compliance plan to Nasdaq?

Hanryu Holdings (HRYU) has until September 4, 2024, to submit an updated plan to Nasdaq to regain compliance with the continued listing requirements.

When is the final deadline for Hanryu Holdings (HRYU) to regain compliance with Nasdaq's listing requirements?

Hanryu Holdings (HRYU) has until October 14, 2024, which is 180 calendar days from the due date of the initial delinquent filing, to regain compliance with all subsequent delinquent filings.

What Nasdaq rule is Hanryu Holdings (HRYU) currently not complying with?

Hanryu Holdings (HRYU) is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires the timely filing of all required periodic reports with the SEC.