Cloopen Regains Compliance with NYSE Minimum Price Requirement

Rhea-AI Summary

Cloopen Group Holding Limited (NYSE: RAAS) announced on April 3, 2023 that it has regained compliance with the NYSE's minimum share price requirement. This follows a notification from the NYSE on October 5, 2022, indicating non-compliance due to the average closing price of its American depositary shares (ADSs) falling below US$1.00. To address this, Cloopen adjusted the ADS Ratio from 1:2 to 1:6, effective on March 15, 2023. The 30-day average closing price of ADSs exceeded US$1.00 by March 31, 2023, ensuring the ADSs will continue trading on the NYSE, contingent upon ongoing compliance.

Positive

• Cloopen regained compliance with NYSE's minimum share price requirement.
• ADS price exceeded US$1.00, allowing continued trading on the NYSE.

Negative

• None.

BEIJING, April 4, 2023 /PRNewswire/ -- Cloopen Group Holding Limited (NYSE: RAAS) ("Cloopen" or the "Company") today announced that, based on a notification letter the Company received from the New York Stock Exchange (the "NYSE") on April 3, 2023, the Company has regained compliance with the NYSE's continued listing standard for minimum share price.

On October 5, 2022, the NYSE notified the Company that it was not in compliance with the NYSE's continued listing standards because, as of October 4, 2022, the average closing price of the Company's American depositary shares (the "ADSs") was less than US$1.00 per ADS over a consecutive 30 trading-day period. In order to regain compliance with the minimum share price requirement, the Company changed the ratio of its ADSs to its Class A ordinary shares (the "ADS Ratio"), par value US$0.0001 per share, from the previous ADS Ratio of one (1) ADS representing two (2) Class A ordinary shares to the current ADS Ratio of one (1) ADS representing six (6) Class A ordinary shares, effective March 15, 2023.

On April 3, 2023, the Company received a confirmation from the NYSE that a calculation of the Company's average ADS price for the 30-trading days ended March 31, 2023 indicated that the Company's ADS price was above the NYSE's minimum requirement of US$1.00 based on a 30-trading day average. Accordingly, the Company is no longer considered below the US$1.00 continued listing criterion. As a result, the Company has regained compliance within the prescribed time, and the ADSs will continue to be traded on the NYSE, subject to the Company's continued compliance with all applicable continued listing standards.

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. 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

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SOURCE Cloopen Group Holding Limited

FAQ

What recent compliance announcement did Cloopen (RAAS) make?

Cloopen announced it regained compliance with the NYSE's minimum share price requirement on April 3, 2023.

When did Cloopen adjust its ADS Ratio?

Cloopen changed its ADS Ratio from 1:2 to 1:6 effective March 15, 2023.

What was the reason for Cloopen's previous non-compliance with NYSE?

Cloopen was notified of non-compliance due to its ADS price falling below US$1.00 on October 4, 2022.

Is Cloopen still listed on the NYSE?

Yes, Cloopen's ADSs will continue to be traded on the NYSE following compliance with listing standards.

What is the current status of Cloopen's ADS price?

As of the 30-day average ended March 31, 2023, Cloopen's ADS price is above US$1.00.