Origin Agritech Regains Compliance with Nasdaq Listing Standards

Rhea-AI Summary

Origin Agritech Ltd. (NASDAQ: SEED) has regained compliance with Nasdaq's market value requirement, ensuring continued listing on The Nasdaq Stock Market. Dr. Gengchen Han, Chairman and CEO, expressed optimism for the future, emphasizing the company's commitment to growth and shareholder value.

Insights

Market Research Analyst

Origin Agritech's announcement of regaining compliance with Nasdaq's market value of listed securities requirement is a positive signal to investors and stakeholders. The company's ability to maintain its listing status avoids the potential volatility and negative perception that could accompany a delisting scenario. This news indicates a stabilization of the company's market valuation, which is crucial for investor confidence.

From a market research perspective, this development could attract more institutional investors who may have mandates that restrict them from investing in companies not meeting certain exchange requirements. The maintenance of the Nasdaq listing also ensures that Origin Agritech remains accessible to a broader range of investors, potentially increasing liquidity and reducing the cost of capital for future endeavors.

However, it is essential to monitor the company's future performance to ensure that it sustains the compliance. Investors should consider the company's strategies in agricultural technology and how they plan to drive sales growth and enhance product offerings. The agricultural sector is rapidly evolving with increased demand for technology-driven solutions and Origin's ability to capitalize on these trends will be critical for long-term growth.

Financial Analyst

Regaining compliance with Nasdaq's listing requirements removes a layer of financial risk for Origin Agritech and its shareholders. It suggests that the company has achieved a market value for its listed securities that meets Nasdaq's minimum requirement, which is a fundamental indicator of financial health and stability.

For current and potential investors, this development can be seen as a mitigating factor against the risk of decreased stock liquidity and marketability. It's also indicative of the company's management effectiveness in navigating financial criteria and maintaining corporate governance standards that align with Nasdaq's expectations.

Investors should now focus on the company's financials to assess whether the improved market valuation is mirrored by solid fundamentals such as revenue growth, profitability and cash flow. It is also important to evaluate the company's competitive position within the agricultural technology industry and the sustainability of its financial performance in the context of market dynamics and global economic conditions.

Agricultural Technology Expert

The commitment of Origin Agritech to leverage its strengths in agricultural technology is noteworthy given the sector's increasing reliance on innovation to improve crop yields, sustainability and adapt to climate change. The company's focus on driving significant sales growth and enhancing product offerings aligns with the industry's trajectory towards more technologically advanced and efficient agricultural practices.

Understanding the specific technologies and products that Origin is developing or improving can provide insight into the company's potential to disrupt the market and increase its market share. For example, advancements in biotechnology, seed genetics, or precision farming could position Origin Agritech as a leader in the field, which would have a positive impact on its long-term market valuation and financial performance.

Stakeholders should monitor the company's R&D investments and pipeline, as well as its ability to commercialize new technologies and respond to the evolving needs of the agricultural sector. The success of these initiatives will be a determinant in the company's ability to deliver value to shareholders and maintain its competitive edge.

BEIJING, Feb. 20, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, today announced that it has regained compliance with Nasdaq's market value of listed securities requirement as set forth in Listing Rule 5550(b)(2). Therefore, the Company is in compliance with the Nasdaq Capital Market's continued listing requirements. Consequently, the scheduled hearing before the Hearings Panel has been cancelled. The Company's securities will continue to be listed and traded on The Nasdaq Stock Market.

Dr. Gengchen Han, Chairman and CEO of Origin Agritech, stated, "We are pleased to regain compliance with Nasdaq's listing standards and to move forward as a Nasdaq-listed company. Looking ahead, we remain focused on leveraging our strengths in agricultural technology to capitalize on new opportunities and deliver value to our shareholders. We are committed to delivering on our promises, driving significant sales growth, and enhancing our product offerings to meet the evolving needs of the agricultural sector."

About Origin Agritech Limited

Origin Agritech Limited, founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is a leading Chinese agricultural technology company. In crop seed biotechnologies, Origin Agritech's phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China's Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline including products with glyphosate tolerance and pest resistance (Bt) traits. For further information, please visit the Company's website at www.originagritech.com. The Company also maintains a Twitter account for updating investors on company and industry developments, which is https://x.com/origin_agritech.

Forward-Looking Statements

This communication contains "forward-looking statements" as defined in the federal securities laws, including Section 27A of the Securities Act of 1933 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. Forward-looking statements address expected future business and financial performance and financial condition, and contain words like "expect," "anticipate," "intend," "plan," "believe," "seek," "will," "would," "target," and similar expressions and variations. Forward-looking statements address matters that are uncertain. Forward-looking statements are not guarantees of future performance and are based on assumptions and expectations which may not be realized. They are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates but involve a number of risks and uncertainties, many of which are beyond the company's control. Some of the important factors that could cause the company's actual results to differ materially from those discussed in forward-looking statements are: failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting our products; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; natural disasters and weather events and patterns; ability to protect and enforce the company's intellectual property rights; and separation of underperforming or non-strategic assets or businesses. The company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments, or new information or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.

For more information, please contact:

Origin Agritech Limited Contact:
Kate Lang (Mandarin/English)
Director of Investor Relations
Phone: +86 186-1839-3368
Email: bing.lang@originseed.com.cn

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

View original content:https://www.prnewswire.com/news-releases/origin-agritech-regains-compliance-with-nasdaq-listing-standards-302065593.html

SOURCE Origin Agritech Limited

FAQ

What is the ticker symbol for Origin Agritech Ltd.?

The ticker symbol for Origin Agritech Ltd. is SEED.

What compliance requirement did Origin Agritech Ltd. regain with Nasdaq?

Origin Agritech Ltd. regained compliance with Nasdaq's market value of listed securities requirement.

Who is the Chairman and CEO of Origin Agritech Ltd.?

Dr. Gengchen Han is the Chairman and CEO of Origin Agritech Ltd.

What market will Origin Agritech Ltd. continue to be listed and traded on?

Origin Agritech Ltd. will continue to be listed and traded on The Nasdaq Stock Market.

What are Origin Agritech Ltd.'s future plans as mentioned in the press release?

Origin Agritech Ltd. plans to leverage its strengths in agricultural technology, drive sales growth, and enhance product offerings to meet agricultural sector needs.

What was the outcome of the scheduled hearing before the Hearings Panel?

The scheduled hearing before the Hearings Panel was cancelled as Origin Agritech Ltd. regained compliance with Nasdaq's listing standards.