SOS Ltd. Announces Receipt of NYSE Non-compliance Letter Regarding ADS Trading Price

Rhea-AI Summary

SOS (NYSE: SOS) has received a non-compliance letter from the New York Stock Exchange (NYSE) due to the trading price of its American depositary shares (ADSs) falling below $1.00 over a consecutive 30 trading-day period. The company has a six-month cure period to bring its share price and average share price back above $1.00 to regain compliance.

SOS can regain compliance if, on the last trading day of any calendar month during the cure period, it has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the preceding 30 trading days. If compliance is not achieved by the end of the cure period, the NYSE may initiate suspension and delisting procedures. The notice does not immediately impact the listing of SOS's ADSs on the NYSE.

Positive

• The company's ADSs will continue to be listed and traded on the NYSE during the cure period
• SOS has a six-month window to regain compliance with NYSE listing standards

Negative

• SOS's ADS trading price has fallen below $1.00 for a consecutive 30 trading-day period
• The company risks potential suspension and delisting from the NYSE if compliance is not achieved within the cure period
• Non-compliance with NYSE standards may negatively impact investor confidence and stock liquidity

Insights

Financial Analyst

SOS's receipt of the NYSE non-compliance letter is a serious warning sign for investors. The company's inability to maintain a share price above $1 indicates significant market skepticism about its value and future prospects. This situation puts SOS at risk of delisting, which could severely impact liquidity and investor confidence.

The six-month cure period provides a narrow window for recovery, but achieving a sustained price increase may be challenging without substantial improvements in the company's fundamentals or market conditions. Investors should closely monitor SOS's efforts to regain compliance, as failure to do so could result in forced selling by institutional investors and index funds, potentially leading to further price declines.

Legal Expert

The NYSE's notification to SOS triggers a critical regulatory compliance issue. While the company has a six-month cure period, this situation raises several legal considerations:

• SOS must ensure transparent communication with shareholders about its plans to regain compliance.
• The company should review its disclosure obligations under securities laws, particularly regarding risk factors in its financial reports.
• If SOS considers a reverse stock split to boost its share price, it must navigate the legal requirements for such corporate actions.

Failure to address these issues promptly could expose SOS to potential shareholder litigation or regulatory scrutiny.

Market Research Analyst

SOS's non-compliance status reflects broader market challenges in the cryptocurrency and blockchain sectors. The company's multifaceted approach, combining blockchain operations with commodity trading, hasn't shielded it from the crypto market downturn. This suggests investors are skeptical about the synergies between these business lines.

To regain compliance, SOS needs to demonstrate a clear value proposition and sustainable growth strategy. The company should focus on:

• Enhancing transparency in its crypto operations
• Diversifying revenue streams
• Improving operational efficiency

Without these improvements, SOS may struggle to attract the investor confidence needed to lift its share price above the critical $1 threshold.

Qingdao, China, Aug. 21, 2024 (GLOBE NEWSWIRE) -- SOS Limited (NYSE: SOS) (the "Company" or "SOS"), a multifaceted company that engages in the blockchain and cryptocurrency operations and commodity trading, today announced the Company has received a letter from the New York Stock Exchange (the "NYSE") dated June 27, 2024, notifying SOS that it is below compliance standards due to the trading price of SOS's American depositary shares (the "ADSs").

Pursuant to NYSE rule 802.01C, a company will be considered to be below compliance standards if the average closing price of a security as reported on the consolidated tape is less than $1.00 over a consecutive 30 trading-day period. Once notified, the company must bring its share price and average share price back above $1.00 by six months following receipt of the notification. The company can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month during the cure period the company has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. In the event that at the expiration of the six-month cure period, both a $1.00 closing share price on the last trading day of the cure period and a $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.

The notice has no immediate impact on the listing of the Company's ADSs, which will continue to be listed and traded on the NYSE during the cure period subject to continued compliance with the other listing requirements of the NYSE.

About SOS Limited

SOS is an emerging blockchain-based service solution provider and also engaged in blockchain and cryptocurrency operations, which currently include cryptocurrency mining and maybe expand into cryptocurrency security. Since April 2021, we launched commodity trading via our subsidiary SOS International Trading Co. Ltd; major trading commodity includes mineral resin, soy bean, wheat, sesame, liquid sulfur, petrol coke and latex etc. For more information, please visit: http://www.sosyun.com/.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Federal Securities Act, including but not limited to our expectations of future financial performance, business strategy or business. These statements constitute forecasts, prospects and forward-looking statements and are not performance guarantees. SOS warns that forward-looking statements are subject to many assumptions, risks and uncertainties that will change over time. Forward looking statements may be identified by words such as "may", "can", "should", "will", "estimate", "plan", "project", "forecast", "intend", "expect", "predict", "believe", "seek", "target", "Outlook" or similar words. Specifically, forward-looking statements may include statements related to the following matters of the company:

• Ability to implement its business plan;
• Changes in SOS product and service market; and
• Expansion plans and opportunities.

These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

These risks and uncertainties include, but not are limited to, the risk factors described by SOS in its filings with the Securities and Exchange Commission ("SEC"). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:

• Local government's policies and regulatory oversight of crypto currency mining operation and our other operations;
• SOS's blockchian and supercomputing, commodity trading and marketing solutions businesses are still under development, with many uncertainties in the future direction and integration of these various business segments;
• Failure to manage the newly launched commodities trading business effectively;
• Loss of key customers in the commodity trading business;
• failure to access a large quantity of power at reasonable costs could significantly increase SOS operating expenses and adversely affect our demand for SOS's mining activities;
• any significant or prolonged failure in the data warehouse facilities and data mining facilities that SOS operates or services it provides, including events beyond its control, would lead to significant costs and disruptions and would reduce the attractiveness of its facilities, harm its business reputation and have a material adverse effect on its results of operation;
• security breaches or alleged security breaches of our data warehouses could disrupt SOS operations and have a material adverse effect on its business, financial condition and results of operation; uncertainty in global supply chain and international shipping and
• fluctuation in the crypto currency price.
• other risks and uncertainties indicated in SOS's SEC reports or documents filed or to be filed with the SEC by SOS.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Contact:

Steven Li
Chief Financial Officer
stevenli@sosyun.com
+8613816822093

FAQ

Why did SOS (NYSE: SOS) receive a non-compliance letter from the NYSE?

SOS received a non-compliance letter from the NYSE because its American depositary shares (ADSs) trading price fell below $1.00 over a consecutive 30 trading-day period, violating NYSE rule 802.01C.

How long does SOS (NYSE: SOS) have to regain compliance with NYSE standards?

SOS has a six-month cure period from the date of notification (June 27, 2024) to bring its share price and average share price back above $1.00 to regain compliance with NYSE standards.

What are the conditions for SOS (NYSE: SOS) to regain compliance with the NYSE?

To regain compliance, SOS must have a closing share price of at least $1.00 and an average closing share price of at least $1.00 over a 30 trading-day period on the last trading day of any calendar month during the cure period.

What happens if SOS (NYSE: SOS) fails to regain compliance within the cure period?

If SOS fails to regain compliance by the end of the six-month cure period, the NYSE may commence suspension and delisting procedures for the company's American depositary shares (ADSs).