mF International Limited Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

mF International (Nasdaq: MFI), a Hong Kong-based financial trading solution provider, has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. The company's stock failed to maintain a minimum bid price of $1.00 per share for 30 consecutive business days from June 18 to July 31, 2024. mF International has been given until January 28, 2025, to regain compliance by achieving a closing bid price of at least $1.00 for a minimum of 10 consecutive business days.

If the company fails to meet this requirement, it may face potential delisting. mF International is considering options to address the issue, including the possibility of a reverse share split. The notification does not immediately affect the company's listing on the Nasdaq Capital Market or its business operations.

Positive

• The company has 180 calendar days (until January 28, 2025) to regain compliance
• Current business operations are not affected by the notification
• The company is considering options to address the issue, including a potential reverse share split

Negative

• mF International is not in compliance with Nasdaq's minimum bid price requirement of $1.00 per share
• The company's stock price has been below $1.00 for 30 consecutive business days
• Potential risk of delisting from Nasdaq if compliance is not regained

Insights

Financial Analyst

The Nasdaq notification regarding mF International's minimum bid price deficiency is a significant concern for investors. This situation often indicates underlying financial challenges or market perception issues. The $1.00 minimum bid requirement is important for maintaining Nasdaq listing and failure to meet it could lead to delisting, potentially impacting liquidity and investor confidence.

While the company has until January 28, 2025, to regain compliance, this timeline is relatively short for organic stock price recovery. The mention of a potential reverse stock split is noteworthy, as it's a common but often viewed negatively by the market. Investors should closely monitor mF International's financial performance and any strategic moves to address this issue, as the outcome could significantly impact the stock's future tradability and value.

Market Research Analyst

This notification highlights broader market challenges for small-cap stocks, particularly in the fintech sector. mF International's situation reflects a trend where smaller companies struggle to maintain investor interest and market valuation. The 30% decline in stock price over 30 days (implied by falling below $1) suggests significant market skepticism or sector-wide pressures.

Investors should consider:

• Sector trends affecting fintech trading solution providers
• Competitive landscape changes
• Potential for market consolidation

The company's response and ability to regain compliance will be important indicators of its market position and long-term viability. This situation may present both risks and potential value opportunities for discerning investors.

HONG KONG, Aug. 06, 2024 (GLOBE NEWSWIRE) -- mF International Limited (the “Company” or “mF International”) (Nasdaq: MFI), a Hong Kong-based experienced financial trading solution provider, today announced that the Company received a written notification letter (the “Notification Letter”) from the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”) on August 1, 2024, notifying the Company that it is not in compliance with the minimum bid price requirement as set forth under Nasdaq Listing Rule 5550(a)(2) for continued listing on Nasdaq. This press release is issued pursuant to Nasdaq Listing Rule 5810(b), which requires prompt disclosure upon the receipt of a deficiency notification.

Nasdaq Listing Rule 5550(a)(2) requires listed companies to maintain a minimum bid price of US$1.00 per share and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company’s ordinary shares for the 30 consecutive business days from June 18, 2024 to July 31, 2024, the Company no longer meets the minimum bid price requirement.

The Notification Letter does not impact the Company’s listing on the Nasdaq Capital Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided 180 calendar days, or until January 28, 2025, to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the Company’s ordinary shares must have a closing bid price of at least US$1.00 for a minimum of 10 consecutive business days. In the event the Company does not regain compliance by the end of the 180 calendar day period, which is January 28, 2025, the Company may be eligible for additional time to regain compliance or may face delisting.

The Company’s business operations are not affected by the receipt of the Notification Letter. The Company intends to monitor the closing bid prices of its ordinary shares and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse share split, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.

About mF International Limited

mF International Limited is a British Virgin Islands holding company with three operating subsidiaries in Hong Kong. The Company’s principal Hong Kong subsidiary, m-FINANCE Limited (“mF” or m-FINANCE), is a Hong Kong-based experienced financial trading solution provider principally engaged in the development and provision of financial trading solutions via internet or platform as software as a service, or SaaS. m-FINANCE has approximately 20 years of experience providing real-time mission critical forex, bullion/commodities trading platform solutions, financial value-added services, mobile applications and financial information for brokers and institutional clients in the region. With clients located over mainland China, Hong Kong and Southeast Asia, m-FINANCE provides customers with the mF4 Trading Platform, Bridge and Plugins, CRM System, ECN System, Liquidity Solutions, Cross-platform “Broker+” Solution, Social Trading Apps and other value-added services. For more information, please visit the Company’s website: https://ir.m-finance.com/.

Forward-Looking Statements

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 find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar. 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 registration statement and other filings with the U.S. Securities and Exchange Commission.

For investor and media inquiries, please contact:

mF International Limited

Investor Relations Department
Email: ir@m-finance.net

Ascent Investor Relations LLC

Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What is the minimum bid price requirement for mF International (MFI) to maintain Nasdaq listing?

mF International (MFI) must maintain a minimum bid price of $1.00 per share to comply with Nasdaq Listing Rule 5550(a)(2) for continued listing.

How long does mF International (MFI) have to regain compliance with Nasdaq's minimum bid price requirement?

mF International (MFI) has been given 180 calendar days, until January 28, 2025, to regain compliance with Nasdaq's minimum bid price requirement.

What options is mF International (MFI) considering to address the Nasdaq compliance issue?

mF International (MFI) is considering available options, including the possibility of implementing a reverse share split, to regain compliance with Nasdaq's minimum bid price requirement.

What happens if mF International (MFI) fails to regain compliance by January 28, 2025?

If mF International (MFI) fails to regain compliance by January 28, 2025, the company may be eligible for additional time to comply or may face delisting from Nasdaq.