LIZHI Receives Approval to Transfer to The Nasdaq Capital Market

Rhea-AI Summary

LIZHI INC. (NASDAQ: LIZI) announced on March 29, 2023, that it received approval from Nasdaq to transfer the listing of its American Depositary Shares (ADSs) from The Nasdaq Global Market to The Nasdaq Capital Market, effective March 30, 2023. This transfer follows a compliance notice received on October 11, 2022, due to the ADS price falling below $1.00 for 30 consecutive business days. LIZHI has until April 10, 2023, to regain compliance or may seek an additional compliance period under specific conditions. The company continues to monitor its bid price requirement to explore options for resolving any deficiencies.

Positive

• Transfer to Nasdaq Capital Market provides an opportunity for an additional compliance period.
• Company continues to actively monitor minimum bid price requirements.

Negative

• Received a compliance notice from Nasdaq due to ADS price under $1.00.
• If non-compliance persists post-transfer, it may risk delisting.

GUANGZHOU, China, March 29, 2023 (GLOBE NEWSWIRE) -- LIZHI INC. (“LIZHI” or the “Company” or “We”) (NASDAQ: LIZI), an audio-based social and entertainment platform, today announced that on March 29, 2023, the Listing Qualifications department of The Nasdaq Stock Market LLC (“Nasdaq”) approved the Company’s request to transfer the listing of the Company’s American Depositary Shares (the “ADSs”) from The Nasdaq Global Market to The Nasdaq Capital Market.

The transfer is expected to take effect at the opening of business on March 30, 2023. The transfer of the Company’s listing to The Nasdaq Capital Market is not expected to have any impact on trading in the Company’s ADSs. The Company’s ADSs will continue to trade uninterruptedly under the symbol “LIZI.” The Nasdaq Capital Market operates in substantially the same manner as The Nasdaq Global Market, and companies on The Nasdaq Capital Market must meet certain financial and corporate governance requirements to qualify for continued listing.

As previously disclosed, on October 11, 2022, the Company received a letter from Nasdaq indicating that the Company was not in compliance with Nasdaq Listing Rule 5450(a)(1), as the closing bid price of the ADSs had been below US$1.00 per ADS for the previous 30 consecutive business days. The Company was given a compliance period of 180 calendar days, or until April 10, 2023, to regain compliance with the minimum bid price requirement. In response, the Company submitted an application to transfer the listing of its ADSs from The Nasdaq Global Market to The Nasdaq Capital Market, and upon transfer, the Company will be afforded the remainder of this compliance period.

As a result of the transfer to The Nasdaq Capital Market, and if compliance with the $1.00 bid price requirement cannot be demonstrated by April 10, 2023, the Company may be eligible for an additional compliance period if it meets the continued listing requirement for the 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.

The Company intends to continue actively monitoring the minimum bid price requirement and, as appropriate, will consider available options to resolve any deficiencies and regain compliance.

About LIZHI INC.

LIZHI INC. has created a comprehensive audio-based social ecosystem with a global presence. The Company aims to cater to users’ interests in audio entertainment and social networking through its product portfolios. LIZHI INC. envisions an audio ecosystem where everyone can be connected and interact through voices. LIZHI INC. has been listed on Nasdaq since January 2020.

For more information, please visit: http://ir.lizhi.fm.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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, and 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: LIZHI’s goals and strategies; LIZHI’s future business development, results of operations and financial condition; the expected growth of the online audio market; the expectation regarding the rate at which to gain active users, especially paying users; LIZHI’s ability to monetize the user base; fluctuations in general economic and business conditions in China and overseas markets; the impact of the COVID-19 to LIZHI’s business operations and the economy in China and elsewhere generally; any adverse changes in laws, regulations, rules, policies or guidelines applicable to LIZHI; and assumptions underlying or related to any of the foregoing. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the Securities Exchange Commission. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:
In China:

LIZHI INC.
IR Department
Tel: +86 (20) 3866-4265
E-mail: ir@lizhi.fm

The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: Lizhi@tpg-ir.com

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: Lizhi@tpg-ir.com

FAQ

What is the recent news about LIZHI on March 29, 2023?

LIZHI received approval to transfer its listing from The Nasdaq Global Market to The Nasdaq Capital Market.

What impact does the transfer to Nasdaq Capital Market have on LIZHI's shares?

The transfer is not expected to impact the trading of the ADSs, which will continue under the symbol 'LIZI'.

Why did LIZHI transfer to the Nasdaq Capital Market?

The transfer was necessary due to non-compliance with the minimum bid price requirement of $1.00 for 30 consecutive business days.

What is the deadline for LIZHI to regain compliance with Nasdaq?

LIZHI has until April 10, 2023, to demonstrate compliance with the minimum bid price requirement.

What happens if LIZHI does not regain compliance by April 10, 2023?

If compliance is not demonstrated, LIZHI may still be eligible for an additional compliance period if it meets other listing requirements.