NCI Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Neo-Concept International Group Holdings (Nasdaq: NCI) announced it received a notification from Nasdaq on July 8, 2024, indicating the company has failed to meet the minimum bid price requirement of $1 per share for its ordinary shares, as stipulated by Nasdaq Listing Rules 5550(a)(2). The deficiency covers the period from May 21, 2024, to July 5, 2024, but the company's shares remain listed for now.

Nasdaq has granted NCI a compliance period of 180 calendar days, ending January 6, 2025, to rectify the issue. Should NCI fail to regain compliance within this period, they may qualify for an additional 180 days if they meet other criteria, including market value of publicly held shares, and notify Nasdaq of their intention to address the deficiency, possibly through a reverse stock split.

If NCI cannot meet the requirements or fails to qualify for the additional compliance period, Nasdaq will move to delist the company's shares. The company is actively exploring options to comply with Nasdaq's rules but can offer no guarantee of success.

Positive

• None.

Negative

• The company has failed to meet the minimum bid price requirement of $1 per share.
• Shares may be delisted if compliance is not achieved by January 6, 2025.
• There is no assurance that the company will regain compliance.

HONG KONG, July 09, 2024 (GLOBE NEWSWIRE) -- Neo-Concept International Group Holdings Limited (Nasdaq: NCI) (the “Company”), announced that, on July 8, 2024, the Company received a letter from the Listing Qualifications staff of The Nasdaq Stock Market ("Nasdaq") notifying the Company that based on the closing bid price of the Company for the period from May 21, 2024 to July 5, 2024, 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 of the Company's ordinary shares. Nasdaq has provided the Company with an 180 calendar days compliance period, or until January 6, 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.

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About Neo-Concept International Group Holdings Limited

Neo-Concept International Group Holdings Limited (“NCI”) is a one-stop apparel solution services provider. It offers a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management serving customers located in the European and North American markets. It also sells its own branded apparel products under the licensed brand “Les100Ciels” through retail stores in UK as well as the e-commerce platform www.les100ciels.com.

NCI is dedicated to minimizing its environmental footprint by implementing various eco-friendly practices. It prioritizes recycling, clean processes, and traceable sourcing as part of its commitment to reducing environmental impact. Additionally, NCI actively seeks sustainable solutions throughout the garment production process, aiming to meet the needs of its customers in an environmentally responsible manner.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and actual events may differ materially from current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes to the market for securities, political or financial instability and other factors which are set forth in the Company’s Registration Statement on Form F-1 (File No. 333-275242), as amended, and in all filings with the SEC made by the Company subsequent to the filing thereof. 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 SEC, which are available for review at www.sec.gov.

Enquiries:

Neo-Concept International Group Holdings Limited Investor Relations Contact:

10/F, Seaview Centre
No.139-141 Hoi Bun Road
Kwun Tong, Kowloon, Hong Kong
(+852) 2798-8639
Email: ir@neo-ig.com

FAQ

What was the reason for Nasdaq's notification to NCI on July 8, 2024?

NCI received a notification from Nasdaq on July 8, 2024, because it failed to meet the minimum bid price requirement of $1 per share as per Nasdaq Listing Rules 5550(a)(2).

What is the compliance period given to NCI by Nasdaq after the notification?

Nasdaq has provided NCI with a compliance period of 180 calendar days, until January 6, 2025, to regain compliance with the minimum bid price requirement.

What happens if NCI does not regain compliance by January 6, 2025?

If NCI does not regain compliance by January 6, 2025, it may qualify for an additional 180 days if it meets other criteria. If not, Nasdaq will delist the company's shares.

Is there any assurance that NCI will be able to regain compliance with Nasdaq's minimum bid price requirement?

There is no assurance that NCI will be able to regain compliance with Nasdaq's minimum bid price requirement.

What could NCI do to regain compliance with Nasdaq's minimum bid price requirement?

NCI could potentially regain compliance by effecting a reverse stock split, among other strategies.