Kaixin Holdings Announces Receipt of Nasdaq Letter Regarding Regaining Compliance with Minimum Bid Price Requirement

Rhea-AI Summary

Kaixin Holdings (NASDAQ: KXIN) has announced receiving a notification from the Nasdaq Hearing Panel confirming its regained compliance with the minimum bid price requirement under Listing Rule 5550(a)(2). The company will be subject to a Mandatory Panel Monitor for one year from November 12, 2024. If Kaixin falls out of compliance with the Bid Price Rule during this period, it won't be permitted to provide a compliance plan or receive additional time to regain compliance, instead facing a potential delisting process with an opportunity for a new hearing.

Positive

• Regained compliance with Nasdaq minimum bid price requirement
• Maintains Nasdaq listing status

Negative

• One-year mandatory monitoring period with strict compliance requirements
• Risk of immediate delisting process if bid price requirements are not met during monitoring period
• No compliance plan or additional time allowance if requirements are breached during monitoring

Insights

Financial Analyst

This regulatory compliance update regarding KXIN's minimum bid price requirement has significant implications. While regaining compliance is positive, the implementation of a Mandatory Panel Monitor for one year creates a strict oversight environment. The company must maintain its share price above $1 consistently, with no additional grace period if it falls below again within the monitoring period.

For a small-cap company with a market cap of just $3.2M, maintaining the minimum bid price could be challenging. The strict monitoring conditions increase the delisting risk if the stock price falters. Investors should monitor the company's fundamentals and market performance closely, as any price decline below $1 during the monitoring period could trigger an expedited delisting process.

HANGZHOU, China, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Kaixin Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) today announced the receipt of a notification letter dated November 12, 2024 from the Hearing Panel of the Nasdaq Stock Market (the “Hearing Panel”), notifying Kaixin that the Company has regained compliance with the minimum bid price requirement in Listing Rule 5550(a)(2) (the “Bid Price Rule”), as required by the Hearing Panel’s decision dated September 12, 2024.

In application of Listing Rule 5815(d)(4)(B), the Company will be subject to a Mandatory Panel Monitor for a period of one year from the date of the notification letter. If, within that one-year monitoring period, the Nasdaq Staff finds the Company again out of compliance with the Bid Price Rule that was the subject of the exception, notwithstanding Rule 5810(c)(2), the Company will not be permitted to provide the Staff with a plan of compliance with respect to that deficiency and Staff will not be permitted to grant additional time for the Company to regain compliance with respect to that deficiency, nor will the company be afforded an applicable cure or compliance period pursuant to Rule 5810(c)(3). Instead, Staff will issue a Delist Determination Letter and the Company will have an opportunity to request a new hearing with the initial Panel or a newly convened Hearings Panel if the initial Panel is unavailable. The Company will have the opportunity to respond/present to the Hearings Panel as provided by Listing Rule 5815(d)(4)(C).

About Kaixin Holdings
Kaixin Holdings is a leading new energy vehicle manufacturer in China, equipped with professional teams with rich experience in R&D, production, marketing, and production facilities with the capacity for stamping, welding, painting, and assembly operations. Kaixin produces multiple electric passenger and logistics vehicle models. The Company is committed to building up a competitive international market position that integrates online and offline presence and diversified business operations. Leveraging the expertise of its professional teams and driven by the inspiration for innovation and sustainability, Kaixin aims to contribute to achieving the goals of “peak carbon emissions and carbon neutrality”.

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" or other similar expressions. 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 announcement and in the attachments is as of the date of this announcement, 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 Holdings
Investor Relations
Email: ir@kaixin.com

FAQ

What did Nasdaq notify Kaixin Holdings (KXIN) about on November 12, 2024?

Nasdaq notified Kaixin Holdings that it has regained compliance with the minimum bid price requirement under Listing Rule 5550(a)(2).

How long will KXIN be under Mandatory Panel Monitor?

Kaixin Holdings will be under Mandatory Panel Monitor for one year from November 12, 2024.

What happens if KXIN fails to meet bid price requirements during the monitoring period?

If KXIN fails to meet bid price requirements during the monitoring period, it will face immediate delisting proceedings without the opportunity to submit a compliance plan or receive additional time to regain compliance.