Secoo Announces Receipt of Nasdaq Notice

Rhea-AI Summary

Secoo Holding Limited (NASDAQ: SECO) announced it received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. The closing bid price of its American Depositary Shares (ADSs) fell below US$1.00 for 30 consecutive business days as of December 17, 2021. Secoo has a 180-day grace period to regain compliance, expiring on June 15, 2022. The company is exploring options to rectify this, including adjusting its ADS-to-Class A ordinary share ratio. To comply, the ADSs need to be at least US$1.00 for ten consecutive business days during this period.

Positive

• Secoo has a 180-day grace period to regain compliance with Nasdaq's bid price requirements, providing time to explore options.
• The company has identified potential strategies, such as adjusting the ADS-to-Class A ordinary share ratio, to achieve compliance.

Negative

• The company’s ADSs have traded below US$1.00 for 30 consecutive business days, indicating potential financial distress.
• Failure to meet the Nasdaq minimum bid price requirement could lead to delisting risks if compliance is not regained.

BEIJING, Dec. 20, 2021 (GLOBE NEWSWIRE) -- Secoo Holding Limited (“Secoo” or the “Company”) (NASDAQ: SECO), Asia’s leading online integrated upscale products and services platform, today announced that it has received a written notification from the staff of the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”) dated December 17, 2021, indicating that because the closing bid price of the Company’s American Depositary Shares (“ADSs”) for the last 30 consecutive business days was below US$1.00 per share, the Company no longer meets the Nasdaq minimum bid price requirement, set forth in Nasdaq Listing Rule 5450(a)(1). Pursuant to the Nasdaq Listing Rules, the applicable grace period to regain compliance is 180 days, or until June 15, 2022. The Company intends to monitor the closing bid price of its ADSs between now and June 15, 2022, and is considering its options, including an adjustment of its ADS-to-Class A ordinary share ratio, in order to regain compliance with the Nasdaq minimum bid price requirement. The Company can cure this deficiency if the closing bid price of its ADSs is US$1.00 per share or higher for at least ten consecutive business days during the grace period. The Company intends to cure the deficiency within the prescribed grace period.

About Secoo Holding Limited

Secoo Holding Limited (“Secoo”) is Asia’s leading online integrated upscale products and services platform. Secoo provides customers a wide selection of authentic upscale products and lifestyle services on the Company’s integrated online and offline shopping platform which consists of the Secoo.com website, mobile applications and offline experience centers, offering over 420,000 SKUs, covering over 3,800 global and domestic brands. Supported by the Company’s proprietary database of upscale products, authentication procedures and brand cooperation, Secoo is able to ensure the authenticity and quality of every product offered on its platform. 

For more information, please visit http://ir.secoo.com.

Safe Harbor Statement

This press release contains 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 Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to Secoo management quotes and the Company’s financial outlook. These forward-looking statements can be identified by terminology such as “will,” “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “intend,” “potential,” “plan,” “goal” and similar statements. Secoo Holding Limited may also make written or oral forward-looking statements in its periodic reports 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. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These forward-looking statements include, but are not limited to, statements about: the Proposed Transaction, the Company’s goals and strategies; its future business development, financial condition and results of operations; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; Chinese governmental policies relating to the Company’s industry and general economic conditions in China. For additional information on these and other important factors that could adversely affect the Company's business, financial condition, results of operations and prospects, please see its filings with the U.S. Securities and Exchange Commission.

Secoo Holding Limited does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and Secoo Holding Limited undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:
Secoo Holding Limited
Jingbo Ma
Tel: +86 10 6588-0135
E-mail:  ir@secoo.com

The Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail:  Secoo@tpg-ir.com

In the United States:
The Piacente Group, Inc.  
Brandi Piacente
Tel: +1-212-481-2050
E-mail:  Secoo@tpg-ir.com

FAQ

What does the recent Nasdaq notification mean for Secoo (SECO)?

It means Secoo's American Depositary Shares have been trading below the minimum bid price of US$1.00, which could result in delisting if not resolved.

How long does Secoo have to regain compliance with Nasdaq?

Secoo has a 180-day grace period, ending on June 15, 2022, to regain compliance with Nasdaq's minimum bid price requirement.

What options is Secoo considering to address the Nasdaq notification?

Secoo is considering options, including adjusting its ADS-to-Class A ordinary share ratio to help increase the bid price.

What happens if Secoo fails to meet Nasdaq's minimum bid price requirement?

If Secoo does not regain compliance, it faces the risk of being delisted from the Nasdaq stock exchange.