Q&K Receives Minimum Bid Price Notice from Nasdaq

Rhea-AI Summary

QK International Group Limited (NASDAQ: QK) announced it received a notification from Nasdaq indicating it no longer meets the minimum bid price requirement. The Company’s American Depositary Shares (ADSs) have closed below $1.00 for 30 consecutive business days. QK has until March 28, 2022, to regain compliance by maintaining a bid price of at least $1.00 for 10 consecutive days. The Company plans to implement measures to achieve compliance during this 180-day period.

Positive

• QK has a compliance period until March 28, 2022, to regain Nasdaq listing requirements.
• The Company plans to take measures to regain compliance.

Negative

• QK's ADSs closed below $1.00 for 30 consecutive business days.
• Failure to comply by the deadline may lead to delisting.

SHANGHAI, China, Oct. 04, 2021 (GLOBE NEWSWIRE) --  Q&K International Group Limited (NASDAQ: QK) (“Q&K” or the “Company”), a leading technology-driven long-term apartment rental platform in China, announced that it received a notification letter (“Notice”) from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) dated September 28, 2021, indicating that the Company no longer meets the minimum bid price requirement set forth in Nasdaq Listing Rule 5450(a)(1) as the closing bid price of the Company’s American Depositary Shares (“ADSs”) was below US$1.00 per ADS for a period of 30 consecutive business days.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of 180 calendar days, or until March 28, 2022 (the “Compliance Period”), to regain compliance with Nasdaq’s minimum bid price requirement. If at any time during the Compliance Period, the closing bid price per ADS is at least US$1.00 for a minimum of 10 consecutive business days, Nasdaq will provide the Company a written confirmation of compliance and the matter will be closed. In the event that the Company does not regain compliance by March 28, 2022, subject to the determination by the staff of Nasdaq, it may be eligible for additional time as stated in the Notice. The Company will take reasonable measures to regain compliance.

About Q&K

Q&K International Group Limited (NASDAQ: QK) is a leading technology-driven long-term apartment rental platform in China. The Company offers young, emerging urban residents conveniently-located, ready-to-move-in, and affordable branded apartments as well as facilitates a variety of value-added services. Q&K leverages advanced IT and mobile technologies to manage rental apartments in various cities in China. Technology is the core of Q&K’s business and is applied to its operational process from apartment sourcing, renovation, and tenant acquisition, to property management. The focus on technology enables Q&K to operate a large, dispersed, and fast-growing portfolio of apartments with high operational efficiency and deliver a superior user experience.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in 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” and similar statements. Among other things, the quotations from management in this press release and the Company and its subsidiaries’ (collectively, the “Group”) operations and business outlook contain forward-looking statements. Such statements involve certain risks, uncertainties and other factors that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include, but are not limited to the following: the Group’s ability to access financing on favorable terms in a timely manner and maintain and expand its cooperation with financial institutions; the Group’s ability to continue as a going concern in the future or achieve or maintain profitability; the Group’s ability to effectively respond to the challenges and uncertainties resulting from the COVID-19 pandemic and other outbreaks and catastrophes; the Group’s ability to manage its growth; the Group’s ability to integrate strategic investments, acquisitions and new business initiatives; the Group’s ability to control the quality of its operations, including the operation of the rental apartments managed by its own apartment managers or by third-party contractors; the Group’s ability to attract and retain tenants and landlords, including tenants and landlords from its acquired lease contracts; the Group’s ability to resolve disputes with third parties; the Group’s ability to manage its brand and reputation; the Group’s goal and strategies; the Group’s limited operating history; the Group’s ability to compete effectively; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Group’s filings with the U.S. Securities and Exchange Commission. Except as required by law, the Group does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

For investor and media inquiries, please contact:

Q&K

E-mail: ir@qk365.com

Christensen

In China

Mr. Rene Vanguestaine

Phone: +852-6686-1376

E-mail: rvanguestaine@ChristensenIR.com

In U.S.

Ms. Linda Bergkamp

Phone: +1-480-614-3004

Email: lbergkamp@christensenir.com

FAQ

What does the Nasdaq notice mean for QK International Group?

The notice indicates that QK's ADSs have been trading below the minimum bid price of $1.00 for 30 consecutive days, requiring the Company to regain compliance.

When does QK need to regain compliance with Nasdaq?

QK has until March 28, 2022, to regain compliance with Nasdaq's minimum bid price requirement.

What will happen if QK does not meet Nasdaq requirements?

If QK fails to regain compliance by the deadline, it may face delisting from Nasdaq.

How is QK planning to regain compliance with Nasdaq?

QK has stated it will take reasonable measures to increase its ADS price above $1.00 during the compliance period.

What has caused QK's stock price to fall below $1.00?

The press release does not specify the reasons for the stock price decline; however, it is related to market conditions and company performance.