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Sunlands Technology Group Regains Compliance with NYSE Minimum Price Continued Listing Criterion

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Sunlands Technology Group (NYSE: STG) announced its compliance with the NYSE's listing requirements after receiving a notification on October 1, 2021. Previously, it was flagged for failing to meet the minimum average share price of $1.00, as reported on July 23, 2021. To regain compliance, Sunlands adjusted the ADS ratio of its Class A ordinary shares on August 31, 2021. The company confirmed that its average closing share price exceeded $1.00 for the 30 trading days ending September 30, 2021.

Positive
  • Regained compliance with NYSE minimum share price requirement.
  • Adjustment of ADS ratio effectively addressed compliance issue.
Negative
  • Previously breached minimum share price requirement.
  • Dependent on stock price fluctuations to maintain NYSE compliance.

BEIJING, Oct. 4, 2021 /PRNewswire/ -- Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), a leader in China's online post-secondary and professional education, today announced that it has received a notification letter from the New York Stock Exchange (the "NYSE") dated October 1, 2021, informing the Company that it has regained compliance with the NYSE's continued listing criterion of a minimum share price as set forth in Section 802.01C of the NYSE Listed Company Manual.

As previously announced, the Company received a letter from the NYSE dated July 23, 2021 notifying the Company that it was below compliance standards due to the fact that the average closing price of the Company's American depositary shares (the "ADSs") was less than $1.00 for a consecutive 30 trading-day period. In order to regain compliance with the minimum share price requirement, the Company changed the ratio of the ADSs representing its Class A ordinary shares from one (1) ADS representing one twenty-fifth (1/25) Class A ordinary shares to one (1) ADS representing one half (1/2) Class A ordinary shares. The change of the ADS ratio became effective on August 31, 2021.

On October 1, 2021, NYSE provided confirmation to the Company that its average closing share price for the consecutive 30-trading days ended September 30, 2021 was above the NYSE's minimum requirement of $1.00 per share. Accordingly, the Company is no longer considered below the $1 continued listing criterion and has regained compliance on this matter.

About Sunlands

Sunlands Technology Group (NYSE: STG) ("Sunlands" or the "Company"), formerly known as Sunlands Online Education Group, is the leader in China's online post-secondary and professional education. With a one to many, live streaming platform, Sunlands offers various degree and diploma-oriented post-secondary courses as well as online professional courses and educational content, to help students prepare for professional certification exams and attain professional skills. Students can access its services either through PC or mobile applications. The Company's online platform cultivates a personalized, interactive learning environment by featuring a virtual learning community and a vast library of educational content offerings that adapt to the learning habits of its students. Sunlands offers a unique approach to education research and development that organizes subject content into Learning Outcome Trees, the Company's proprietary knowledge management system. Sunlands has a deep understanding of the educational needs of its prospective students and offers solutions that help them achieve their goals.

Safe Harbor Statement

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. Sunlands may also make written or oral forward-looking statements in its reports filed with or furnished 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. Any statements that are not historical facts, including statements about Sunlands' beliefs and expectations, are forward-looking statements that involve factors, risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Sunlands' goals and strategies; its expectations regarding demand for and market acceptance of its brand and services; its ability to retain and increase student enrollments; its ability to offer new courses and educational content; its ability to improve teaching quality and students' learning results; its ability to improve sales and marketing efficiency and effectiveness; its ability to engage, train and retain new faculty members; its future business development, results of operations and financial condition; its ability to maintain and improve technology infrastructure necessary to operate its business; competition in the online education industry in China; relevant government policies and regulations relating to Sunlands' corporate structure, business and industry; and general economic and business condition in China. Further information regarding these and other risks, uncertainties or factors is included in the Sunlands' filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Sunlands does not undertake any obligation to update such information, except as required under applicable law.

For investor and media enquiries, please contact:

Sunlands Technology Group
Investor Relations
Email: sl-ir@sunlands.com

The Piacente Group, Inc. 
Brandi Piacente
Tel: +1-212-481-2050
Email: sunlands@tpg-ir.com

Yang Song
Tel: +86-10-6508-0677
Email: sunlands@tpg-ir.com   

Cision View original content:https://www.prnewswire.com/news-releases/sunlands-technology-group-regains-compliance-with-nyse-minimum-price-continued-listing-criterion-301391451.html

SOURCE Sunlands Technology Group

FAQ

What led to Sunlands Technology Group (NYSE: STG) regaining NYSE compliance?

Sunlands regained compliance by adjusting the ADS ratio, which increased its average share price above the $1.00 minimum.

When did Sunlands Technology Group last report a compliance notification from the NYSE?

Sunlands received the compliance notification on October 1, 2021.

What was the previous share price issue for Sunlands Technology Group?

Sunlands was notified on July 23, 2021, that it was below the minimum share price requirement of $1.00.

How did Sunlands Technology Group adjust its ADS ratio?

The company changed the ADS ratio from 1 ADS for every 25 Class A ordinary shares to 1 ADS for every 2 Class A ordinary shares.

What is the current status of Sunlands Technology Group's share price compliance?

As of October 1, 2021, Sunlands' average closing share price met the NYSE's minimum requirement.

Sunlands Technology Group, American Depositary Shares, American Depositary Shares, every two (2) ADSs representing one (1)

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Education & Training Services
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