Lixiang Education Received Notice of Failure to Satisfy Continued Listing Rule
Lixiang Education Holding Co., (NASDAQ: LXEH), a private education service provider in China, has received a notice from Nasdaq indicating non-compliance with the Minimum Market Value of Publicly Held Shares Rule. The company failed to maintain the required $5 million minimum market value of publicly held shares from July 15 to August 28, 2024. Lixiang has been given until February 25, 2025, to regain compliance by exceeding the $5 million threshold for at least 10 consecutive business days. Failure to comply may result in delisting, though the company may consider transferring to the Nasdaq Capital Market. The notice does not immediately affect LXEH's listing or trading status on the Nasdaq Global Market.
Lixiang Education Holding Co., (NASDAQ: LXEH), un fornitore privato di servizi educativi in Cina, ha ricevuto una comunicazione da Nasdaq riguardo alla non conformità con la Regola sul Valore di Mercato Minimo delle Azioni Pubbliche. L'azienda non è riuscita a mantenere il valore di mercato minimo di 5 milioni di dollari delle azioni pubbliche dal 15 luglio al 28 agosto 2024. Lixiang ha tempo fino al 25 febbraio 2025 per ristabilire la conformità superando la soglia di 5 milioni di dollari per almeno 10 giorni lavorativi consecutivi. Il mancato rispetto potrebbe comportare la delisting, sebbene l'azienda possa considerare il trasferimento al Nasdaq Capital Market. La comunicazione non influisce immediatamente sullo stato di quotazione o di trading di LXEH sul Nasdaq Global Market.
Lixiang Education Holding Co., (NASDAQ: LXEH), un proveedor privado de servicios educativos en China, ha recibido un aviso de Nasdaq indicando incumplimiento de la Regla de Valor de Mercado Mínimo de Acciones en Circulación. La empresa no logró mantener el valor de mercado mínimo de 5 millones de dólares de las acciones en circulación desde el 15 de julio hasta el 28 de agosto de 2024. Lixiang tiene plazo hasta el 25 de febrero de 2025 para recuperar el cumplimiento superando el umbral de 5 millones de dólares durante al menos 10 días hábiles consecutivos. El incumplimiento podría resultar en la exclusión de la lista, aunque la empresa podría considerar transferirse al Nasdaq Capital Market. El aviso no afecta de inmediato el estado de cotización o trading de LXEH en el Nasdaq Global Market.
Lixiang Education Holding Co., (NASDAQ: LXEH), 중국의 민간 교육 서비스 제공업체가 Nasdaq으로부터 공개 주식 최소 시장 가치 규정에 대한 불이행 통지를 받았습니다. 이 회사는 2024년 7월 15일부터 8월 28일까지 500만 달러의 최소 시장 가치를 유지하지 못했습니다. Lixiang은 2025년 2월 25일까지 500만 달러의 기준을 충족시키기 위해 최소 10일 연속 영업일 동안 초과해야 합니다. 불이행 시 상장 폐지로 이어질 수 있으나, 회사는 Nasdaq Capital Market으로의 이전을 고려할 수 있습니다. 이 통지는 LXEH의 Nasdaq Global Market 상장 또는 거래 상태에 즉각적인 영향을 미치지 않습니다.
Lixiang Education Holding Co., (NASDAQ: LXEH), un fournisseur privé de services éducatifs en Chine, a reçu un avis de Nasdaq indiquant un non-respect de la Règle sur la Valeur de Marché Minimale des Actions Publiques. La société n'a pas réussi à maintenir la valeur de marché minimale de 5 millions de dollars pour les actions publiques du 15 juillet au 28 août 2024. Lixiang a jusqu'au 25 février 2025 pour retrouver la conformité en dépassant le seuil de 5 millions de dollars pendant au moins 10 jours ouvrables consécutifs. En cas de non-respect, cela pourrait entraîner une radiation, bien que la société envisage de se transférer au Nasdaq Capital Market. L'avis n'affecte pas immédiatement l'état de cotation ou de négociation de LXEH sur le Nasdaq Global Market.
Lixiang Education Holding Co., (NASDAQ: LXEH), ein privater Bildungsdienstleister in China, hat eine Mitteilung von Nasdaq erhalten, die auf die Nichteinhaltung der Regel zum Mindestmarktwert der öffentlich gehaltenen Aktien hinweist. Das Unternehmen konnte den erforderlichen Mindestmarktwert von 5 Millionen Dollar für öffentlich gehaltene Aktien vom 15. Juli bis zum 28. August 2024 nicht aufrechterhalten. Lixiang hat bis zum 25. Februar 2025 Zeit, die Einhaltung wiederherzustellen, indem es den Wert von 5 Millionen Dollar an mindestens 10 aufeinanderfolgenden Geschäftstagen übersteigt. Bei Nichteinhaltung könnte es zu einer Delistung kommen, obwohl das Unternehmen einen Transfer zum Nasdaq Capital Market in Betracht ziehen könnte. Die Mitteilung hat keinen unmittelbaren Einfluss auf den Listing- oder Handelsstatus von LXEH am Nasdaq Global Market.
- Company given 180 days to regain compliance with Nasdaq listing requirements
- Current listing and trading status on Nasdaq Global Market remains unaffected
- Failed to maintain minimum $5 million market value of publicly held shares
- Risk of potential delisting from Nasdaq Global Market if compliance not achieved by February 25, 2025
- Indication of declining market value and investor interest in the company's shares
Insights
This notice from Nasdaq is a significant red flag for Lixiang Education. The company's market value of publicly held shares falling below
The compliance issue faced by Lixiang Education reflects broader challenges in China's private education sector. Recent regulatory crackdowns on for-profit tutoring have created a hostile environment for education companies. LXEH's struggle to maintain market value suggests it may be failing to adapt to these new realities. The company needs to demonstrate a clear strategy for navigating the changing landscape, possibly by pivoting towards non-academic or vocational education services that are less affected by regulations. Without a compelling turnaround plan, LXEH risks losing both investor confidence and its competitive edge in a rapidly evolving market.
Lixiang Education's predicament is part of a larger trend affecting Chinese companies listed on U.S. exchanges. Geopolitical tensions, regulatory uncertainties and concerns about financial transparency have led to a broad devaluation of Chinese stocks. LXEH's low market value might not solely reflect company-specific issues but also this broader market sentiment. To regain compliance, LXEH needs to not only improve its financial performance but also enhance its investor relations and transparency efforts. This could include more frequent communications, clearer financial reporting and potentially seeking strategic partnerships or investments to boost investor confidence and market value.
LISHUI, China, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Lixiang Education Holding Co., Ltd. (the “Company” or NASDAQ: LXEH), a prestigious private education service provider in China, today announced that it received a written notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq Global Market on August 29, 2024 indicating that the Company was not in compliance with Listing Rule 5450(b)(1)(C)(the “Minimum Market Value of Publicly Held Shares Rule”), which requires the Company to maintain a minimum market value of publicly held shares of US
The Minimum Market Value of Publicly Held Shares Rule requires listed securities to maintain a minimum market value of publicly held shares of US
The Company intends to actively monitor its market value of publicly held shares between now and February 25, 2025.
The Notice is only notification of deficiency, not of imminent delisting, and has no current effect on the listing or trading of the Company’s securities on the Nasdaq Global Market.
About Lixiang Education Holding Co., Ltd.
Founded in Lishui City, China, Lixiang Education Holding Co., Ltd. is a prestigious private education service provider in Zhejiang Province. The Company’s education philosophy is to guide the healthy development of students and to establish a solid foundation for their lifelong advancement and happiness. For more information, please visit: www.lixiangeh.com.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to 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,” “likely to,” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “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 the Company’s beliefs, plans, 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: the Company’s strategies, future business development, and financial condition and results of operations; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; the Company’s ability to maintain and enhance its brand. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For more information, please contact:
Siyi Ye
Tel: +86-578-2267142
Email: irlxeh@lsmxjy.com
FAQ
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