Cloopen Receives NYSE Non-compliance Letter Regarding ADS Trading Price

Rhea-AI Summary

Cloopen Group Holding Limited (NYSE: RAAS) announced on June 29, 2022, that it received a non-compliance letter from the NYSE due to its American depositary shares trading below the $1.00 compliance standard. The notification, dated May 31, 2022, requires the company to raise its average share price above $1.00 by November 30, 2022, or face delisting. Cloopen is considering its options while monitoring market conditions to address this issue.

Positive

• None.

Negative

• Received NYSE non-compliance letter regarding ADS trading price.
• Must achieve average share price above $1.00 by November 30, 2022, to avoid delisting.
• Failure to comply could lead to suspension and delisting procedures.

BEIJING, June 29, 2022 /PRNewswire/ -- Cloopen Group Holding Limited (NYSE: RAAS) ("Cloopen" or the "Company") today announced that it received a letter from the New York Stock Exchange (the "NYSE") dated May 31, 2022, notifying the Company that it is below compliance standards due to the trading price of the Company's American depositary shares (the "ADSs") and that the applicable cure period for the Company to regain compliance expires on November 30, 2022.

Pursuant to applicable NYSE continued listing standards, a company would be considered "below criteria" by the NYSE 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. The company must bring its share price and average share price back above US$1.00 by six months following receipt of the notification. 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. Alternatively, the company can also demonstrate an accelerated cure based on a US$1.00 share price on both the last trading day of any calendar month within the six-month cure period and the average share price over the 30 trading days preceding the end of that month.

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

About Cloopen Group Holding Limited

Cloopen Group Holding Limited is a leading multi-capability cloud-based communications solution provider in China offering a full suite of cloud-based communications solutions, covering communications platform as a service (CPaaS), cloud-based contact centers (cloud-based CC), and cloud-based unified communications and collaborations (cloud-based UC&C). Cloopen's mission is to enhance the daily communication experience and operational productivity for enterprises. Cloopen aspires to drive the transformation of enterprise communications industry by offering innovative marketing and operational tactics and SaaS-based tools.

For more information, please visit https://ir.yuntongxun.com. 

Forward-Looking Statements

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. Cloopen may also make written or oral forward-looking statements in its reports filed with or furnished to the SEC, 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 Cloopen's beliefs and expectations as well as its financial outlook, are forward-looking statements. These forward-looking statements are based on Cloopen's current expectations and involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors, risks and uncertainties include, but not limited to the following: Cloopen's goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to attract new customers or retain existing ones; its ability to continue developing solutions and the markets its solutions target; its ability to maintain collaborations with mobile network operators; its ability to enhance or upgrade its existing solutions and introduce new ones in a timely and cost-effective manner; its ability to maintain the compatibility of its solutions across devices, business systems and applications and physical infrastructure; relevant government policies and regulations relating to Cloopen's corporate structure, business and industry, as well as the industries in which its customers operate; and general economic and business condition in China. Further information regarding these and other risks, uncertainties or factors is included in Cloopen's filings with the SEC. All information provided in this press release is current as of the date of the press release, and Cloopen does not undertake any obligation to update such information, except as required under applicable law. All forward-looking statements are qualified in their entirety by this cautionary statement, and you are cautioned not to place undue reliance on these forward-looking statements.

For investor and media inquiries, please contact:

Cloopen Group Holding Limited

Investor Relations
Email: ir@yuntongxun.com

 

View original content:https://www.prnewswire.com/news-releases/cloopen-receives-nyse-non-compliance-letter-regarding-ads-trading-price-301577748.html

SOURCE Cloopen Group Holding Limited

FAQ

What triggered the NYSE non-compliance letter for RAAS?

Cloopen received a letter from the NYSE because its American depositary shares were trading below the $1.00 compliance threshold.

What is the deadline for Cloopen to regain compliance with NYSE standards?

Cloopen must raise its average share price above $1.00 by November 30, 2022.

What happens if Cloopen fails to comply with NYSE standards?

If Cloopen does not achieve compliance by the deadline, it may face suspension and delisting from the NYSE.

What actions is Cloopen taking in response to the non-compliance notice?

Cloopen is monitoring market conditions and considering its options to address the compliance issue.