NewGenIvf Receives Nasdaq Notifications Regarding Market Value of Publicly Held Shares and Market Value of Listed Securities

Rhea-AI Summary

On May 24, 2024, NewGenIvf Group (NASDAQ: NIVF) received two notifications from Nasdaq indicating non-compliance with Nasdaq Listing Rules. The first notice highlighted that the company's Class A Ordinary Shares did not meet the minimum $15,000,000 Market Value of Publicly Held Shares (MVPHS) for 35 consecutive business days. The second notice stated that the shares failed to meet the $50,000,000 Market Value of Listed Securities (MVLS) requirement over the same period. The company has 180 days, until November 20, 2024, to regain compliance with these requirements. Failing to do so may result in delisting, though the company can also apply to transfer to The Nasdaq Capital Market. Currently, the shares continue to trade on Nasdaq under the symbol 'NIVF.'

Positive

• NewGenIvf has 180 days to regain compliance with Nasdaq's MVPHS and MVLS requirements.
• Class A Shares will continue trading uninterrupted on Nasdaq under the ticker 'NIVF'.
• The company can apply to transfer its securities to The Nasdaq Capital Market if necessary.

Negative

• Class A Shares did not meet the minimum $15,000,000 MVPHS requirement for 35 consecutive business days.
• Class A Shares failed to meet the $50,000,000 MVLS requirement for the same period.
• Non-compliance with these requirements may result in delisting from Nasdaq.
• Potential uncertainty regarding the stock's market value and investor confidence during the compliance period.

Financial Analyst

NewGenIvf's receipt of deficiency notifications from Nasdaq is an important signal for investors to consider. The deficiencies in market value highlight underlying issues in shareholder confidence and overall company valuation. The minimum $15,000,000 Market Value of Publicly Held Shares (MVPHS) and $50,000,000 Market Value of Listed Securities (MVLS) requirements emphasize the current undervaluation. This situation could lead to potential delisting if not addressed.

From a short-term perspective, the stock may experience increased volatility as the company works towards regaining compliance. For long-term investors, this news could indicate deeper financial and operational challenges. Investors should keep an eye on how NewGenIvf plans to address these deficiencies. Possible actions could include restructuring, strategic partnerships, or capital infusions, all of which could affect stock performance and shareholder value.

The compliance period of 180 days provides some breathing room, but the company must act decisively to avoid potential delisting. Investors should remain vigilant and monitor any developments closely.

Market Research Analyst

From a market position standpoint, the notifications from Nasdaq put NewGenIvf in a precarious situation. An MVPHS and MVLS deficiency typically reflects broader issues such as declining investor interest or insufficient market confidence. These deficiencies can also impact the company's ability to attract new investors and capital, potentially limiting growth opportunities.

For retail investors, it's important to understand that while the stock remains listed for now, there is a heightened risk of volatility. The company's options to regain compliance may include measures that could dilute existing shareholders' value, such as issuing additional shares or seeking new capital investments.

Monitoring how the management responds and the market's reception to these efforts will be key in assessing future stock performance. Additionally, investors should consider how these deficiencies compare with industry norms and whether this signifies a broader trend within the sector or specific to NewGenIvf.

BANGKOK, May 28, 2024 (GLOBE NEWSWIRE) -- NewGenIvf Group Limited (NASDAQ: NIVF) (“NewGen” or the “Company”), today announced that on May 24, 2024, the Company received two letters from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it is currently not in compliance with certain requirements under the relevant Nasdaq Listing Rules.

The first letter (the “MVPHS Deficiency Letter”) notified the Company that, for the preceding 35 consecutive business days of the MVPHS Deficiency Letter, the Company’s Class A Ordinary Shares (the “Class A Shares”) did not meet the minimum $15,000,000 Market Value of Publicly Held Shares (“MVPHS”) requirement for continued listing on Nasdaq pursuant to Nasdaq Listing Rules 5450(b)(2)(C) (the “MVPHS Requirement”).

The second letter (the “MVLS Deficiency Letter”) notified the Company that, for the preceding 35 consecutive business days, the Class A Shares did not meet the minimum $50,000,000 Market Value of Listed Securities (“MVLS”) requirement for continued listing on Nasdaq pursuant to Nasdaq Listing Rules 5450(b)(2)(A) (the “MVLS Requirement”).

This press release is issued pursuant to Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt(s) of a deficiency notification(s). The MVPHS Deficiency Letter and the MVLS Deficiency Letter have no immediate effect on the listing of the Company’s Class A Shares, which will continue to trade uninterrupted on Nasdaq under the ticker symbol “NIVF.”

Pursuant to Nasdaq Listing Rule 5810(c)(3)(D), the Company has an initial compliance period of 180 calendar days, or until November 20, 2024 (the “Compliance Date”), to regain compliance with the MVPHS Requirement. Pursuant to Nasdaq Listing Rule 5810(c)(3)(C), the Company also has an initial compliance period of 180 calendar days, or until the Compliance Date, to regain compliance with the MVLS Requirement. If at any time the (i) MVPHS for the Class A Shares is at least $15,000,000 for a minimum of ten consecutive business days or (ii) MVLS for the Class A Shares is at least $50,000,000 for a minimum of ten consecutive business days, the Staff will provide the Company written confirmation of compliance with such requirements, as applicable.

In the event the Company does not regain compliance with the above requirements prior to the expiration of the compliance period, it will receive written notification that its securities are subject to delisting. Alternatively, the Company may apply to transfer the Company’s securities to The Nasdaq Capital Market. The Company intends to monitor the MVPHS and MVLS of the Class A Shares and may, if appropriate, consider available options to regain compliance with the MVPHS and MVLS requirements.

About NewGen

NewGen is a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments. With a mission to aid couples and individuals in building families regardless of fertility challenges, NewGen has dedicated itself to creating increased access to infertility treatment and providing comprehensive fertility services for its customers. NewGen and its management have over a decade of experience in the fertility industry. NewGen’s clinics are located in Thailand, Cambodia, and Kyrgyzstan, and present a full suite of services for its patients, including comprehensive infertility and assisted reproductive technology treatments, egg and sperm donation, and surrogacy, in the appropriate jurisdictions, respectively. To learn more, visit www.newgenivf.com. The information contained on, or accessible through, NewGen’s website is not incorporated by reference into this press release, and you should not consider it a part of this press release.

Forward-Looking Statements

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. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of NewGenIvf’s future commercial operations. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, such as the Company’s or NewGenIvf’s inability to implement its business plans, identify and realize additional opportunities, or meet or exceed its financial projections and changes in the regulatory or competitive environment in which the Company or NewGenIvf operates. You should carefully consider the foregoing factors and the other risks and uncertainties described in NewGenIvf’s annual report on Form 20-F and other documents filed or to be filed by NewGenIvf’s with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. Copies of these documents are available on the SEC’s website, www.sec.gov. All information provided herein is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

ICR, LLC
Robin Yang
Phone: +1 (212) 537-4406
Email: Newgenivf.IR@icrinc.com

FAQ

What is the compliance issue faced by NewGenIvf (NIVF)?

NewGenIvf received notifications from Nasdaq for not meeting the minimum $15,000,000 MVPHS and $50,000,000 MVLS requirements.

What happens if NewGenIvf (NIVF) does not regain compliance by November 20, 2024?

If compliance is not regained, NewGenIvf may face delisting from Nasdaq or may apply to transfer its securities to The Nasdaq Capital Market.

Will NewGenIvf (NIVF) shares continue to trade during the compliance period?

Yes, NewGenIvf's shares will continue to trade uninterrupted on Nasdaq under the ticker 'NIVF' during the compliance period.

What are NewGenIvf's options to regain compliance with Nasdaq requirements?

NewGenIvf can monitor and take appropriate actions to increase the MVPHS and MVLS values. If necessary, it can also apply to transfer to The Nasdaq Capital Market.