Jianpu Technology Inc. Announces Receipt of NYSE Non-compliance Letter Regarding ADS Trading Price

Rhea-AI Summary

Jianpu Technology Inc. (NYSE: JT) has received a letter from the New York Stock Exchange notifying the company that it is below compliance standards due to the trading price of its American depositary shares (ADSs). The company has until July 24, 2024, to regain compliance by bringing its share price and average share price back above $1.00. Jianpu is considering its options to address this issue.

Positive

• None.

Negative

• The company is below compliance standards due to the trading price of its ADSs, which could lead to suspension and delisting procedures if not rectified within the cure period.

Insights

Financial Analyst

The notification received by Jianpu Technology from the NYSE regarding non-compliance with the minimum share price requirement is a critical concern for the company and its shareholders. The stipulation for a minimum average closing price of a security, specifically the ADS, is a standard measure to maintain orderly market conditions and protect investor interests. The potential delisting of Jianpu's ADSs, should the share price not recover, could lead to reduced liquidity and lesser visibility in the market.

From a financial perspective, the company's ability to regain compliance within the six-month cure period will be closely watched by investors. A successful elevation of the share price above the $1.00 threshold would likely restore investor confidence and could potentially attract additional investment. However, failure to do so may necessitate strategic actions such as a reverse stock split or other measures to consolidate shares and boost the price.

The short-term implications for stakeholders include the volatility of the share price as the market reacts to this news. In the long-term, the company's stock market performance and ability to attract capital for growth could be significantly impacted. It is critical for Jianpu to communicate its strategy effectively to the market to mitigate the risks associated with non-compliance and potential delisting.

Market Research Analyst

Understanding the broader market implications of Jianpu's current situation requires an examination of the company's market position and competitive landscape within China's financial product discovery and recommendation sector. The company's performance and stock price are influenced by factors such as user growth, product offerings, regulatory environment and technological advancements.

Market conditions, particularly in the tech and fintech sectors, can be volatile and subject to rapid change. Investors will be keen to assess whether Jianpu's challenges are indicative of wider market trends or specific to the company's operational and strategic decisions. Additionally, the regulatory climate in China, especially concerning fintech companies, has been tightening, which may have indirect effects on investor sentiment and the company's ability to navigate the market.

It is important to note that the stock price is not only a reflection of current performance but also of future expectations. The company's response to this challenge and its plans to innovate and adapt to changing market conditions will be crucial in determining its future trajectory and potential to regain compliance with NYSE standards.

BEIJING, Jan. 30, 2024 /PRNewswire/ -- Jianpu Technology Inc. ("Jianpu" or the "Company") (NYSE: JT), a leading independent open platform for discovery and recommendation of financial products in China, today announced that it has received a letter from the New York Stock Exchange (the "NYSE") dated January 24, 2024, notifying the Company that (i) it is below compliance standards due to the trading price of the Company's American depositary shares (the "ADSs"), (ii) the applicable cure period for the Company to regain compliance will expire on July 24, 2024, and (iii) with respect to the previous NYSE letter dated September 28, 2023 regarding ADS trading price, the receipt of which was announced by the Company on October 2, 2023, the NYSE confirmed that the Company had regained compliance as of November 30, 2023.

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 within the applicable cure period following receipt of the notification. The company can regain compliance at any time during the 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 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, Jianpu intends to monitor the market conditions of its listed securities and is still considering its options.

About Jianpu Technology Inc.

Jianpu Technology Inc. is a leading independent open platform for the discovery and recommendation of financial products in China. The Company connects users with financial service providers in a convenient, efficient, and secure way. By leveraging its proprietary technology, Jianpu provides users with customized search results and recommendations tailored to each user's particular financial needs and profile. The Company also enables financial service providers with sales and marketing solutions to reach and serve their target customers more effectively through integrated channels and enhance their competitiveness by providing them with tailored data, risk management services and solutions. The Company is committed to maintaining an independent open platform, which allows it to serve the needs of users and financial service providers impartially. For more information, please visit http://ir.jianpu.ai.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, financial condition and results of operations; the Company's expectations regarding demand for, and market acceptance of, its solutions and services; the Company's expectations regarding keeping and strengthening its relationships with users, financial service providers and other parties it collaborates with; trends, competition and regulatory policies relating to the industries the Company operates in; general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China: 
Jianpu Technology Inc.
(IR) Liting Lu, E-mail: IR@rong360.com
(PR) Amanda Hu, E-mail: Media@rong360.com
Tel: +86 (10) 6242 7068 

Christensen
Suri Cheng, E-mail: suri.cheng@christensencomms.com
Tel: +86 185 0060 8364  
Crystal Lai, E-mail: crystal.lai@christensencomms.com
Tel: +852 2232 3907  

In US: 
Christensen
Linda Bergkamp, E-mail: linda.bergkamp@christensencomms.com
Tel: +1 480 353 6648 

View original content:https://www.prnewswire.com/news-releases/jianpu-technology-inc-announces-receipt-of-nyse-non-compliance-letter-regarding-ads-trading-price-302047820.html

SOURCE Jianpu Technology Inc.

FAQ

What is the ticker symbol for Jianpu Technology Inc.?

The ticker symbol for Jianpu Technology Inc. is JT.

What is the compliance issue Jianpu Technology Inc. is facing?

Jianpu Technology Inc. is below compliance standards due to the trading price of its American depositary shares (ADSs).

What is the cure period for Jianpu Technology Inc. to regain compliance?

Jianpu Technology Inc. has until July 24, 2024, to regain compliance by bringing its share price and average share price back above $1.00.

What will happen if Jianpu Technology Inc. does not attain the required share prices?

If Jianpu Technology Inc. does not attain a $1.00 closing share price and a $1.00 average closing share price over the 30 trading-day period by the expiration of the cure period, the NYSE will commence suspension and delisting procedures.

What is Jianpu Technology Inc. considering to address the compliance issue?

Jianpu Technology Inc. intends to monitor the market conditions of its listed securities and is still considering its options to address the compliance issue.