LAIX Inc. Announces Receipt of NYSE Non-Compliance Letter

Rhea-AI Summary

LAIX Inc. (NYSE: LAIX) announced on September 13, 2021, it received a notification from the NYSE regarding non-compliance with listing standards due to low market capitalization and stockholders' equity. As of September 7, 2021, LAIX's average market cap was approximately $49.7 million, below the $50 million threshold, and its reported stockholders' equity was $(104.7) million. The company has until December 8, 2021, to submit a business plan to demonstrate compliance, with a cure period expiring on March 8, 2023.

Positive

• LAIX is actively considering options to regain compliance with NYSE listing standards.

Negative

• Current market capitalization is approximately $49.7 million, below the $50 million compliance threshold.
• Stockholders' equity reported as $(104.7) million, indicating financial distress.

SHANGHAI, Sept. 13, 2021 /PRNewswire/ -- LAIX Inc. ("LAIX" or the "Company") (NYSE: LAIX), an artificial intelligence (AI) company in China that creates and delivers products and services to popularize English learning, today announced that it has received a letter (the "Letter") from the New York Stock Exchange (the "NYSE") dated September 8, 2021 and further e-mail communication on the same date, notifying the Company that (i) it is below compliance standards due to the Company's total market capitalization and stockholder's equity, (ii) the due date for the Company to submit a business plan that demonstrates compliance is December 8, 2021 and (iii) the applicable cure period for the Company to regain compliance expires on March 8, 2023.

Pursuant to applicable NYSE continued listing standards, a company would be considered "below criteria" by the NYSE if its total market capitalization is less than $50 million over a 30 trading-day period and its stockholders' equity is less than $50 million. A review of the current financial condition of the Company by NYSE shows that, as of September 7, 2021, the Company's 30 trading-day average market capitalization was approximately $49.7 million and its last reported stockholders' equity as of June 30, 2021 was approximately $(104.7) million. Accordingly, the Company is now subject to the procedures as set forth in Sections 801 and 802 of the NYSE Listed Company Manual, and is required to respond within 90 days of the Letter with a business plan that demonstrates compliance with the continued listing standard within 18 months of receipt of the Letter. The business plan will be reviewed for final disposition by the Listings Operations Committee of the NYSE.

To address this issue, LAIX intends to comply with the applicable procedures and is still considering its options to regain compliance.

About LAIX Inc.

LAIX Inc. ("LAIX" or the "Company") is an artificial intelligence (AI) company in China that creates and delivers products and services to popularize English learning. Its proprietary AI teacher utilizes cutting-edge deep learning and adaptive learning technologies, big data, well-established education pedagogies and the mobile internet. LAIX believes its innovative approach fundamentally transforms learning. LAIX provides its products and services on demand via its mobile apps, primarily its flagship "English Liulishuo" mobile app launched in 2013. On the Company's platform, AI technologies are seamlessly integrated with diverse learning content incorporating well-established language learning pedagogies, gamified features and strong social elements to deliver an engaging, adaptive learning experience. LAIX provides a variety of courses inspired by a broad range of topics and culture themes to make English learning more interesting and is committed to offering a fun, interactive learning environment to motivate and engage its users.

For more information, please visit: http://ir.laix.com.

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," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue" or other similar expressions. LAIX may also make written or oral forward-looking statements in its periodic reports to the Securities and Exchange Commission, 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 but not limited to statements about LAIX's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a variety of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: LAIX's goals and strategies; LAIX's future business development, results of operations and financial condition; the expected growth of the education market; LAIX's ability to monetize the user base; fluctuations in general economic and business conditions in China; PRC governmental policies, laws and regulations relating to the Company's industry; the potential impact of the COVID-19 to LAIX's business operations and the economy in China and elsewhere generally; 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 Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

LAIX Inc.
Jiazhuo Zheng
Investor Relations
Email: ir@laix.com 

The Piacente Group Investor Relations
Brandi Piacente
Tel: +1-212-481-2050
Email: liulishuo@tpg-ir.com

Emilie Wu
Tel: +86-21-6039-8363
Email: liulishuo@tpg-ir.com

View original content:https://www.prnewswire.com/news-releases/laix-inc-announces-receipt-of-nyse-non-compliance-letter-301374889.html

SOURCE LAIX Inc.

FAQ

What is LAIX's current market capitalization?

As of September 7, 2021, LAIX's average market capitalization was approximately $49.7 million.

What did LAIX announce on September 13, 2021?

LAIX announced it received a non-compliance letter from NYSE regarding its market capitalization and stockholders' equity.

When is the deadline for LAIX to respond to the NYSE?

LAIX must submit a business plan by December 8, 2021.

What are the financial implications for LAIX?

LAIX's stockholders' equity is reported at $(104.7) million, indicating financial challenges.

What is the cure period for LAIX to regain compliance?

The cure period for LAIX to regain compliance with the NYSE listing standards expires on March 8, 2023.