Origin Agritech Regains NASDAQ Listing Compliance

Rhea-AI Summary

Origin Agritech Ltd. (NASDAQ: SEED) has announced that it has regained compliance with NASDAQ listing requirements after previously being non-compliant due to insufficient stockholders' equity, market value, and net income. On March 6, 2020, the company was notified of the deficiencies, but from July 2 to July 30, 2020, it maintained a market value of at least $35 million. The compliance notification marks a positive turnaround for the company, enhancing its standing on the NASDAQ Capital Market.

Positive

• Regained compliance with NASDAQ listing requirements.
• Maintained a market value of at least $35 million for 20 consecutive business days.

Negative

• None.

BEIJING, Aug. 5, 2020 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture technology company, today announced that it has received notice from Nasdaq stating that the Company has regained compliance with NASDAQ listing requirements.

On March 6, 2020, the Company was notified by NASDAQ that it did not comply with the minimum $2.5 million stockholders' equity, $35 million market value of listed securities, or $500,000 of net income from continuing operations requirements for The Nasdaq Capital Market. Since then, NASDAQ officials determined that for the 20 consecutive business days, from July 2 through July 30, 2020, the Company's market value of listed securities has been $35,000,000 or greater and accordingly, the Company has regained compliance with NASDAQ listing requirements.

About Origin Agritech Limited

Origin Agritech Limited, founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is China's leading agricultural technology. 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: http://www.originseed.com.cn or http://www.originseed.com.cn/en/.

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.

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SOURCE Origin Agritech Limited

FAQ

What does it mean for SEED to regain NASDAQ listing compliance?

Regaining NASDAQ listing compliance means Origin Agritech met the required financial standards set by NASDAQ, which can enhance investor confidence and retention on the exchange.

When did Origin Agritech receive notice of non-compliance?

Origin Agritech was notified of non-compliance on March 6, 2020.

How long did SEED maintain compliance with NASDAQ requirements?

Origin Agritech maintained compliance for 20 consecutive business days from July 2 to July 30, 2020.

What were the financial criteria for SEED's NASDAQ compliance?

The criteria included having at least $2.5 million in stockholders' equity, a market value of at least $35 million, and a minimum of $500,000 in net income from continuing operations.

How did SEED achieve compliance with NASDAQ after being non-compliant?

SEED achieved compliance by increasing its market value of listed securities to $35 million or greater over the required period.