TIAN RUIXIANG Holdings Ltd Receives Notification of Non-compliance from Nasdaq Relating to Late Filing of Annual Report on Form 20-F
- None.
- TIRX received a notice of non-compliance from Nasdaq for not filing its annual report on time, impacting its compliance with Nasdaq Listing Rule 5250(c)(1). This situation may raise concerns among investors about the company's adherence to regulatory requirements and its financial reporting practices.
Insights
The notice of non-compliance received by TIAN RUIXIANG Holdings Ltd from Nasdaq is a significant regulatory event that can potentially impact investor confidence and the company's stock performance. The delay in filing the annual report indicates operational or financial issues that require attention. Investors and analysts typically scrutinize such reports for insights into a company's financial health, strategic direction and operational efficiency. The delay could signal underlying problems such as accounting irregularities or challenges in internal controls.
While the immediate effect on the stock's listing status is non-existent, the potential long-term implications cannot be ignored. If the company fails to submit a satisfactory plan or regain compliance within the given timeframe, it risks delisting. A delisting could severely reduce the stock's liquidity and attractiveness to institutional investors, potentially leading to a decline in share price and market capitalization.
From a legal standpoint, the failure to meet the Nasdaq Listing Rule 5250(c)(1) is a matter of concern as it reflects on the company's governance and compliance framework. The SEC requires timely filings to ensure transparency and protect investors. Non-compliance may attract regulatory scrutiny and erode stakeholder trust. It is essential for the company to address the root cause of the delay and implement corrective measures to ensure future compliance.
Moreover, the company's ability to submit a convincing plan to regain compliance is crucial. The plan should not only outline the steps to file the overdue report but also demonstrate measures to prevent future occurrences. This will be a test of the company's commitment to regulatory adherence and could influence investor perception.
The news of non-compliance may also impact the company's competitive position within the insurance brokerage industry. As trust and reliability are key factors in this sector, potential clients may be deterred, affecting the company's ability to attract and retain business. The market will be observing closely how TIAN RUIXIANG addresses this issue, as it could be indicative of the company's operational resilience and management's ability to navigate regulatory landscapes.
Furthermore, the industry benchmark for regulatory compliance is high and any deviation from this norm is usually met with investor caution. The company's response to this challenge will be pivotal in maintaining its industry standing and ensuring that it does not lose ground to competitors who are in good regulatory standing.
BEIJING, March 25, 2024 (GLOBE NEWSWIRE) -- TIAN RUIXIANG Holdings Ltd (Nasdaq: TIRX) (the "Company"), a China-based insurance broker conducting business through its variable interest entity in China, today announced that on March 20, 2024, it received a notice of non-compliance from Nasdaq Listing Qualifications which states that, as a result of not having timely filed its annual report on Form 20-F for the fiscal year ended October 31, 2023 (the "2023 Form 20-F"), the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic reports with the Securities and Exchange Commission (the "SEC"). This notice has no immediate effect on the listing or trading of TIRX's Class A ordinary shares on the Nasdaq Capital Market.
Under Nasdaq’s listing rules, the Company has 60 calendar days, or until May 20, 2024, to submit a plan to regain compliance. If the plan is accepted by Nasdaq, the Company can be granted up to 180 calendar days from the 2023 Form 20-F's due date, or until September 10, 2024, to regain compliance.
About TIAN RUIXIANG Holdings Ltd
TIAN RUIXIANG Holdings Ltd, headquartered in Beijing, China, is an insurance broker operating in China through its China-based variable interest entity. It distributes a wide range of insurance products, which are categorized into two major groups: (1) property and casualty insurance, such as automobile insurance, commercial property insurance, liability insurance; and (2) other insurance, such as life insurance and health insurance. For more information, visit the company's website at http://ir.tianrx.com/.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. 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 the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review risk factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission.
For investor and media enquiries, please contact:
TIAN RUIXIANG Holdings Ltd
Investor Relations Department
Email: ir@tianrx.com
Wealth Financial Services LLC
Connie Kang
Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)
FAQ
What notice did TIRX receive from Nasdaq?
What is the deadline for TIRX to submit a plan to regain compliance?
How long does TIRX have to regain compliance if its plan is accepted by Nasdaq?
