Linkage Global Inc Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Linkage Global (NASDAQ: LGCB) has received a notification from Nasdaq on October 31, 2024, regarding non-compliance with the minimum bid price requirement. The company's stock has traded below the required $1 per share for 30 consecutive business days. Linkage has been granted an initial 180-day compliance period until April 29, 2025, to regain compliance. If unsuccessful, the company may be eligible for an additional 180-day period if it meets other listing requirements. The company is evaluating options to regain compliance, though success is not guaranteed.

Positive

• 180-day compliance period granted by Nasdaq
• Possibility of additional 180-day extension if other listing requirements are met

Negative

• Stock trading below $1 minimum bid requirement
• Risk of potential delisting from Nasdaq if compliance is not achieved
• No guarantee of successful compliance achievement

Insights

Financial Analyst

This Nasdaq deficiency notice represents a significant challenge for Linkage Global. The stock's persistent trading below $1 triggers potential delisting concerns, though the company has until April 29, 2025, to rectify this situation. The most likely remediation paths include a reverse stock split or naturally improving share price through business performance.

With a relatively small market cap of $5.2M, the company faces heightened scrutiny. The 180-day compliance window provides some breathing room, but historical patterns show that companies receiving such notices often struggle to regain compliance naturally. The potential for an additional 180-day extension offers some flexibility, but investors should monitor this situation closely as delisting risk could significantly impact liquidity and institutional investment potential.

Tokyo Japan, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Linkage Global Inc (the “Company” or “Linkage”), (NASDAQ: LGCB), a cross-border e-commerce integrated services provider headquartered in Japan, today announced that, on October 31, 2024, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that based upon the closing bid price of the Class A ordinary shares of the Company for the last 30 consecutive business days, the Company no longer meets the continued listing requirement of Nasdaq under Nasdaq Listing Rules 5550(a)(2) to maintain a minimum bid price of $1 per share.

The notification has no immediate effect on the listing or trading of the Company’s Class A ordinary shares on Nasdaq. Nasdaq has provided the Company with an 180 calendar days compliance period, or until April 29, 2025, in which to regain compliance with Nasdaq continued listing requirement. In the event that the Company does not regain compliance in the compliance period, the Company may be eligible for an additional 180 calendar days, should the Company meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and is able to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. However, if it appears that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq will provide notice that the Company’s securities will be subject to delisting.

The Company is currently evaluating options to regain compliance and intends to timely regain compliance with Nasdaq’s continued listing requirement. Although the Company will use all reasonable efforts to achieve compliance with Rule 5550(a)(2), there can be no assurance that the Company will be able to regain compliance with that rule or will otherwise be in compliance with other Nasdaq continued listing requirement.

About Linkage Global Inc

Linkage Global Inc is a holding company incorporated in the Cayman Islands with no operations of its own. Linkage Cayman conducts its operations through its operating subsidiaries in Japan, Hong Kong, and mainland China. As a cross-border e-commerce integrated services provider headquartered in Japan, through its operating subsidiaries, the Company has developed a comprehensive service system comprised of two lines of business complementary to each other, including (i) cross-border sales and (ii) integrated e-commerce services. For more information, please visit www.linkagecc.com.

Safe Harbor Statement

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “assesses,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s annual reports on Form 20-F and other filings with the U.S. Securities and Exchange Commission.

For more information, please contact:

Investor Relations
WFS Investor Relations Inc.
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742

FAQ

Why did Linkage Global (LGCB) receive a Nasdaq deficiency notice?

Linkage Global received a Nasdaq deficiency notice on October 31, 2024, because its stock price traded below the minimum requirement of $1 per share for 30 consecutive business days.

What is the deadline for Linkage Global (LGCB) to regain Nasdaq compliance?

Linkage Global has until April 29, 2025 (180 calendar days) to regain compliance with Nasdaq's minimum bid price requirement.

What happens if LGCB doesn't meet Nasdaq compliance by April 29, 2025?

If LGCB doesn't comply by April 29, 2025, it may be eligible for an additional 180-day period if it meets other listing requirements. If unable to comply, the stock may face delisting from Nasdaq.