Lixiang Education Regains Compliance with Nasdaq Minimum Bid Price Requirement

Rhea-AI Summary

Lixiang Education Holding Co., (NASDAQ: LXEH), a private education service provider in China, has regained compliance with Nasdaq's minimum bid price requirement. The company received a letter from Nasdaq on October 14, 2024, confirming that for 10 consecutive business days from September 30 to October 11, 2024, the closing bid price of its American Depositary Shares was $1.00 or higher.

This development resolves the compliance issue raised on May 7, 2024, when Nasdaq notified the company of its failure to maintain a minimum bid price of $1.00 per share for over 30 consecutive trading days. LXEH was given until November 4, 2024, to regain compliance. The company implemented a 1-for-10 reverse stock split effective September 30, 2024, which likely contributed to meeting the minimum bid price requirement.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• Avoided potential delisting from Nasdaq
• Successfully implemented a 1-for-10 reverse stock split to boost share price

Negative

• Previously faced risk of delisting due to low share price
• Needed to implement a reverse stock split, which may be viewed negatively by some investors

LISHUI, China, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Lixiang Education Holding Co., Ltd. (the “Company” or NASDAQ: LXEH), a prestigious private education service provider in China, today announced that on October 14, 2024, it received a letter from the Listing Qualification Department of Nasdaq Stock Market LLC (the “Nasdaq”) notifying the Company that “for the last 10 consecutive business days, from September 30 to October 11, 2024, the closing bid price of the Company’s American Depositary Shares has been at $1.00 per share or greater. Accordingly, the Company has regained compliance with Listing Rule 5450(a)(1), and this matter is now closed.”

On May 7, 2024, the Company was notified by Nasdaq of its failure to maintain a minimum bid price of $1.00 per share for more than 30 consecutive trading days under Nasdaq Listing Rule 5450(a)(1), and was given a compliance period of 180 calendar days, or until November 4, 2024 to regain compliance. Effective September 30, 2024, the Company effected a 1-for-10 reverse stock split.

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

When did Lixiang Education (LXEH) regain compliance with Nasdaq's minimum bid price requirement?

Lixiang Education (LXEH) regained compliance with Nasdaq's minimum bid price requirement on October 14, 2024, as confirmed by a letter from Nasdaq's Listing Qualification Department.

What was the minimum bid price requirement that LXEH had to meet?

LXEH had to maintain a closing bid price of $1.00 or higher for its American Depositary Shares for at least 10 consecutive business days to regain compliance with Nasdaq's Listing Rule 5450(a)(1).

How did Lixiang Education (LXEH) address the low share price issue?

Lixiang Education (LXEH) implemented a 1-for-10 reverse stock split effective September 30, 2024, to address the low share price issue and regain compliance with Nasdaq's minimum bid price requirement.

What was the deadline for Lixiang Education (LXEH) to regain compliance with Nasdaq?

Lixiang Education (LXEH) had until November 4, 2024, to regain compliance with Nasdaq's minimum bid price requirement, as specified in the notification received on May 7, 2024.