OneSmart Announces Receipt of NYSE Non-compliance Letter Regarding ADS Trading Price

Rhea-AI Summary

OneSmart International Education Group Limited (NYSE: ONE) has received a non-compliance letter from the NYSE regarding its American depositary shares (ADSs). This letter, dated August 3, 2021, states that OneSmart's ADSs have been trading below the $1.00 threshold over a consecutive 30-day period, as per NYSE rule 802.01C. To regain compliance, OneSmart must have a closing share price of at least $1.00 by the end of a six-month cure period. The company will monitor the situation and explore its options.

Positive

• OneSmart has a six-month cure period to regain compliance with NYSE listing standards.

Negative

• The company's ADSs are currently trading below the $1.00 threshold, risking delisting from NYSE.
• Failure to meet compliance by the end of the six-month period could lead to suspension and delisting.

SHANGHAI, Aug. 4, 2021 /PRNewswire/ -- OneSmart International Education Group Limited ("OneSmart" or the "Company") (NYSE: ONE), a leading education company in China, today announced that, it has received a letter from the New York Stock Exchange (the "NYSE") dated August 3, 2021, notifying OneSmart that it is below compliance criteria in connection with the performance of trading price of OneSmart's American depositary shares (the "ADSs").

Pursuant to NYSE rule 802.01C, a company will be considered to be below compliance criteria if the average closing price of a security as reported on the consolidated tape is less than US$1.00 over a consecutive 30 trading-day period. Once notified, the company must bring its share price and average share price back above US$1.00 by six months following receipt of the notification. The company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period the company has a closing share price of at least US$1.00 and an average closing share price of at least US$1.00 over the 30 trading-day period ending on the last trading day of that month. In the event that at the expiration of the six-month cure period, both a US$1.00 closing share price on the last trading day of the cure period and a US$1.00 average closing share price over the 30 trading-day period ending on the last trading day of the cure period are not attained, the NYSE will commence suspension and delisting procedures.

To address this issue, the Company intends to monitor the market conditions of its listed securities and is still considering its options.

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995.  These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. OneSmart may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, 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. Any statements that are not historical facts, including statements about OneSmart's beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: OneSmart's goals and strategies; its future business development, financial condition and results of operations; its ability to continue to penetrate premium K-12 after-school education services market; diversify and enrich our education offerings; enhance the development and management of our teacher team and teaching materials; competition in our industry in China; its ability to maintain and expand online education presence; relevant government policies and regulations relating to the corporate structure, business and industry; and its ability to protect our students' information and adequately address privacy concerns. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update such information, except as required under applicable law.

About OneSmart

Founded in 2008 and headquartered in Shanghai, OneSmart International Education Group Limited is a leading education company in China. Our vision is to be the most trusted and heart-warming education company and our mission is POWER LEARNING changes the future with technology advancement. Our company culture is centered on the core values of customer focus, excellence, integrity, and technology and innovation. As of February 28, 2021, OneSmart operates a nationwide network of 457 learning centers in China.

For more information on OneSmart, please visit http://ir.onesmart.org/.

For further information, please contact:

OneSmart
Ms. Ida Yu
+86-21-2250-5891
E-mail: ir@onesmart.org

ICA (Institutional Capital Advisory)
Mr. Kevin Yang
Phone: +86-21-8028-6033
E-mail: onesmart@icaasia.com

View original content:https://www.prnewswire.com/news-releases/onesmart-announces-receipt-of-nyse-non-compliance-letter-regarding-ads-trading-price-301348077.html

SOURCE OneSmart

FAQ

What does the NYSE non-compliance letter mean for OneSmart (ONE)?

The NYSE non-compliance letter indicates that OneSmart's American depositary shares (ADSs) have been trading below $1.00, necessitating action to restore compliance.

What is the deadline for OneSmart to comply with NYSE regulations?

OneSmart has a six-month period following the August 3, 2021 notification to restore its ADS closing price above $1.00.

What happens if OneSmart does not regain compliance with NYSE?

If OneSmart fails to meet the compliance criteria by the end of the six-month period, the NYSE will commence suspension and delisting procedures.

How can OneSmart regain compliance with the NYSE?

OneSmart can regain compliance by closing at least $1.00 on the last trading day of any month during the six-month period and maintaining that average price.