Kaixin Auto Holdings Announces Receipt of Nasdaq Letter Regarding Second Minimum Bid Price Compliance Period

Rhea-AI Summary

Kaixin Auto Holdings (NASDAQ: KXIN) received a Nasdaq notification on March 28, 2023, indicating that it has not met the minimum bid price requirement of $1 per share. However, Nasdaq has granted the company an additional 180 days, until September 25, 2023, to achieve compliance. If the share price reaches $1 for at least 10 consecutive business days during this period, compliance will be confirmed. Failure to comply by the deadline may lead to delisting, but the company retains the right to appeal.

Kaixin is transitioning from a dealership network to a key player in China's electric vehicle market amidst the growing used car sector.

Positive

• Eligible for an additional 180-day compliance period until September 25, 2023.
• Potential to regain compliance if the share price reaches $1 for 10 consecutive days.

Negative

• Currently does not meet Nasdaq's minimum bid price requirement.
• Risk of delisting if compliance is not achieved by the deadline.

BEIJING, March 29, 2023 (GLOBE NEWSWIRE) -- Kaixin Auto Holdings ("Kaixin" or the "Company") (NASDAQ: KXIN) today announced the receipt of a notification letter (the “Nasdaq Letter”) dated on March 28, 2023 from the Listing Qualifications department of the Nasdaq Stock Market (“Nasdaq”), notifying Kaixin that, as of March 28, 2023, the Company’s listed security has not regained compliance with the requirement of maintaining a minimum bid price of $1 per share pursuant to Nasdaq Rule 5550(a)(2). However, the Nasdaq Staff has determined that the Company is eligible for an additional 180 calendar day period, or until September 25, 2023, to regain compliance pursuant to Nasdaq Rule 5810(c)(3)(A).

If at any time during this additional time period the closing bid price of the Company’s security is at least $1 per share for a minimum of 10 consecutive business days, the Nasdaq will provide written confirmation of compliance and this matter will be closed. If compliance cannot be demonstrated by September 25, 2023, the Staff will provide written notification that the Company’s securities will be delisted. At that time, the Company may appeal the Staff’s determination to a Hearings Panel.

About Kaixin Auto Holdings

Kaixin Auto Holdings is one of the primary dealership networks in the premium used car segment and new car sales in China. Supported by the rapid growth of China's used car market and leveraging its own hybrid business model that offers both strong online and offline presence, Kaixin is in the process of transforming from a nationwide dealerships network to one of the important players in China’s electric vehicle market.

Safe Harbor Statement

This announcement may contain 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" and similar statements. Among other things, the business outlook for 2021 and quotations from management in this announcement, as well as Kaixin’s strategic and operational plans, contain forward-looking statements. Kaixin may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Kaixin’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: our goals and strategies; our future business development, financial condition and results of operations; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with auto dealerships; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our other documents filed with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kaixin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Kaixin Auto Holdings 
Investor Relations
Email: ir@kaixin.com 

SOURCE: Kaixin Auto Holdings

FAQ

What is the latest update for Kaixin Auto Holdings (KXIN) regarding Nasdaq compliance?

Kaixin Auto Holdings has been notified that it is not in compliance with Nasdaq's minimum bid price requirement but has been granted 180 additional days to meet the requirement.

What happens if Kaixin Auto Holdings fails to regain compliance with Nasdaq?

If Kaixin fails to meet the compliance requirement by September 25, 2023, its securities may be delisted.

How can Kaixin Auto Holdings regain compliance with Nasdaq?

Kaixin can regain compliance if its shares close at $1 or more for at least 10 consecutive business days before the compliance deadline.

When was the notification letter from Nasdaq received by Kaixin Auto Holdings?

The notification letter was received by Kaixin Auto Holdings on March 28, 2023.