Tuniu Announces Receipt of Minimum Bid Price Notice from Nasdaq

Rhea-AI Summary

Tuniu Corporation (Nasdaq: TOUR) received a notification from Nasdaq regarding its non-compliance with the minimum bid price requirement. The company has 180 days to regain compliance or may be eligible for an additional 180-day compliance period.

Positive

• None.

Negative

• The non-compliance with the minimum bid price requirement may raise concerns among investors and traders, potentially impacting the stock price and the company's ability to attract new investors.

Insights

Market Research Analyst

The notification received by Tuniu Corporation from Nasdaq regarding the non-compliance with the minimum bid price requirement is a critical regulatory issue that can affect investor sentiment and the company's ability to raise capital. It is imperative to understand that the bid price is a reflection of the market's valuation of a company's stock and a prolonged period of sub-dollar share price suggests a market consensus of diminished confidence in the company's financial health or growth prospects.

From a market research perspective, this scenario could potentially lead to increased volatility in Tuniu's stock as investors may react to the perceived risk of delisting. Historically, companies facing similar issues have employed strategies like reverse stock splits to boost share prices, though such actions are not without risks and could be viewed unfavorably if seen as merely cosmetic changes rather than reflective of underlying business improvements.

Financial Analyst

The financial implications of falling below Nasdaq's minimum bid price requirement are multifaceted. For Tuniu Corporation, the short-term impact includes the stigma associated with being tagged as a 'penny stock,' which can deter institutional investors and restrict the pool of potential investors. This can lead to lower trading volumes and liquidity, making it more challenging for existing shareholders to sell their stakes without affecting the share price significantly.

In the long-term, if Tuniu fails to regain compliance, the threat of delisting could materialize, which would likely result in a further decline in investor confidence and share price. Being delisted from a major exchange like Nasdaq could also complicate the company's access to capital markets, as it would then have to rely on less regulated over-the-counter markets where investor protections might be less stringent.

Legal Expert

From a legal standpoint, Tuniu's receipt of the Nasdaq notification triggers certain disclosure obligations and initiates a compliance period that is clearly defined by Nasdaq Listing Rules. The company must now adhere to the procedural guidelines set forth for regaining compliance, including the possibility of an additional grace period. The legal team's role will be to ensure that all communications and actions taken by Tuniu in response to this notification are in strict accordance with securities laws and regulations to avoid further legal complications.

Moreover, it is crucial for the company to maintain transparency with its shareholders regarding its compliance efforts and any potential impacts on its listing status. Failure to do so could result in legal challenges or shareholder lawsuits, especially if the stock's performance continues to suffer or if the company is ultimately delisted.

NANJING, China, Jan. 12, 2024 /PRNewswire/ -- Tuniu Corporation (Nasdaq: TOUR) ("Tuniu" or the "Company"), a leading online leisure travel company in China, today announced that it has received written notification from the staff of the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") dated January 9, 2024, indicating that for the last 30 consecutive business days, the closing bid price for the Company's American depositary shares (the "ADSs") was below the minimum bid price of US$1.00 per share requirement set forth in Nasdaq Listing Rule 5450(a)(1). The Nasdaq notification letter has no current effect on the listing or trading of the Company's securities on the Nasdaq Global Market.

Pursuant to the Nasdaq Listing Rules 5810(c)(3)(A), the Company is provided with a compliance period of 180 calendar days, or until July 8, 2024, to regain compliance under the Listing Rules. If at any time during the 180-day compliance period, the closing bid price of the Company's ADSs is US$1.00 per share or higher for a minimum of ten consecutive business days, the Nasdaq will provide the Company written confirmation of compliance and the matter will be closed.

In the event the Company does not regain compliance by July 8, 2024, subject to the determination by the staff of Nasdaq, the Company may be eligible for an additional 180-day compliance period.

The Nasdaq notification letter will have no effect on the Company's business operations, and the Company will take all reasonable measures to regain compliance.

About Tuniu

Tuniu (Nasdaq: TOUR) is a leading online leisure travel company in China that offers integrated travel service with a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. Tuniu provides one-stop leisure travel solutions and a compelling customer experience through its online platform and offline service network, including a dedicated team of professional customer service representatives, 24/7 call centers, extensive networks of offline retail stores and self-operated local tour operators. For more information, please visit http://ir.tuniu.com.

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. Tuniu 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 Tuniu's 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 are not limited to the following: Tuniu's goals and strategies; the growth of the online leisure travel market in China; the demand for Tuniu's products and services; its relationships with customers and travel suppliers; the Company's ability to offer competitive travel products and services; Tuniu's future business development, results of operations and financial condition; competition in the online travel industry in China; relevant government policies and regulations relating to the Company's structure, business and industry; the impact of the COVID-19 on Tuniu's business operations, the travel industry and the economy of China and elsewhere generally; and the general economic and business condition in China and elsewhere. Further information regarding these and other risks, uncertainties or factors is included in the Company's 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 Tuniu does not undertake any obligation to update such information, except as required under applicable law.

View original content:https://www.prnewswire.com/news-releases/tuniu-announces-receipt-of-minimum-bid-price-notice-from-nasdaq-302033394.html

SOURCE Tuniu Corporation

FAQ

What is the company name and ticker symbol mentioned in the press release?

The company mentioned in the press release is Tuniu Corporation, and its ticker symbol is TOUR.

What notification did Tuniu Corporation receive from Nasdaq?

Tuniu Corporation received a notification from Nasdaq regarding its non-compliance with the minimum bid price requirement.

What is the compliance period provided by Nasdaq to Tuniu Corporation?

The company is provided with a compliance period of 180 calendar days, or until July 8, 2024, to regain compliance under the Listing Rules.

What happens if Tuniu Corporation does not regain compliance by July 8, 2024?

If the company does not regain compliance by July 8, 2024, it may be eligible for an additional 180-day compliance period, subject to the determination by the staff of Nasdaq.

How will the Nasdaq notification letter affect Tuniu Corporation's business operations?

The Nasdaq notification letter will have no effect on the company's business operations, and the company will take all reasonable measures to regain compliance.