Top Wealth Group Holding Limited Announces Receipt of Nasdaq Notification Letter Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Top Wealth Group (NASDAQ: TWG), a Hong Kong-based luxury caviar supplier, received a notification from Nasdaq on December 9, 2024, regarding non-compliance with the minimum bid price requirement. The company's shares traded below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).

TWG has until June 9, 2025, to regain compliance by maintaining a closing bid price of $1.00 or higher for at least 10 consecutive business days. The company's shares continue trading on Nasdaq uninterrupted. If compliance isn't achieved by the deadline, TWG may be eligible for additional time if it meets other listing requirements and notifies Nasdaq of its intent to cure the deficiency.

Positive

• Trading continues uninterrupted on Nasdaq
• 180-day grace period granted until June 9, 2025
• Possibility for additional compliance period if other listing requirements are met

Negative

• Stock trading below $1.00 for 30 consecutive business days
• Risk of potential delisting from Nasdaq if compliance not achieved
• Non-compliance with Nasdaq minimum bid price requirement

Insights

Financial Analyst

This Nasdaq minimum bid price deficiency notice represents a significant risk for Top Wealth Group. With shares trading below $1.00 for 30 consecutive days, the company faces potential delisting if unable to regain compliance by June 2025. The $13.58M micro-cap company now has several challenging options: implementing a reverse stock split, improving fundamental performance to attract investors, or seeking additional capital. The 180-day compliance window provides some breathing room, but the company's small market cap suggests underlying business challenges. Historical patterns show that companies receiving such notices often struggle to maintain long-term listing status without significant operational improvements or corporate restructuring.

Market Research Analyst

The luxury caviar market context makes this notification particularly concerning. Top Wealth Group's sub-dollar share price and small market capitalization indicate weak market confidence in their business model and growth prospects. The timing of this notice could negatively impact investor sentiment and potentially affect relationships with luxury retail partners who value stability and prestige. Maintaining Nasdaq listing is important for international luxury goods companies as it provides credibility and access to capital markets. The company's management must now balance addressing the listing requirements while maintaining their premium market positioning in the competitive luxury seafood segment.

Hong Kong, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Top Wealth Group Holding Limited (NASDAQ: TWG) (“Top Wealth” or the “Company”), a Hong Kong-based supplier of luxury caviar products, today announced that it received a delinquency notification letter (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) on December 9, 2024, indicating that the Company is not currently in compliance with the minimum bid price requirement set forth in Nasdaq’s Listing Rules for continued listing on the Nasdaq Capital Market, as the closing bid price for the Company’s ordinary shares listed on the Nasdaq Capital Market was below $1.00 per share for 30 consecutive business days.

Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. The Notice provides that the Company has a period of 180 calendar days from the date of the Notice, or until June 9, 2025, to regain compliance with the minimum bid price requirement.

The receipt of the Notice has no immediate effect on the Company’s business operations or the listing of the Company’s ordinary shares, which will continue to trade uninterrupted on the Nasdaq under the ticker “TWG.” Pursuant to the Notice, the Company has until June 9, 2025, to regain compliance with the minimum bid price requirement, during which time the Company’s ordinary shares will continue to trade on the Nasdaq Capital Market. If at any time before June 9, 2025, the bid price of the Company’s ordinary shares closes at or above $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written confirmation of compliance to the Company.

In the event that the Company does not regain compliance by June 9, 2025, the Company may be eligible for additional time to regain compliance. To qualify, the Company would be required to meet the continued listing requirement for the market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, except for the minimum bid price requirement. In addition, the Company would be required to notify Nasdaq of its intent to cure the deficiency during the second compliance period. If the Company is unable to meet these requirements, Nasdaq may provide notice that the Company’s securities will be subject to delisting.

The Company is committed to regaining compliance with Nasdaq’s Listing Rules and maintaining its listing on the Nasdaq Capital Market. Management is evaluating all available options to resolve the deficiency and ensure compliance within the compliance period provided by Nasdaq.

About Top Wealth Group Holding Limited

Top Wealth Group Holding Limited is a holding company incorporated in the Cayman Islands, and all of its operations are carried out by its operating subsidiary in Hong Kong, Top Wealth Group (International) Limited. The Company specializes in supplying premium-class sturgeon caviar, and its caviar and caviar products are endorsed with the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”) permits. The Company supplies caviar to its customers under its customer’s brand labels (i.e. private labeling), and the Company also sells the caviar product under the Company’s caviar brand, “Imperial Cristal Caviar”, which has continuously achieved tremendous sales growth since its launch in the market.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of 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. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in verbal statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.

For more information, please contact:

Top Wealth Group Holding Limited

Investor Relations

Email: ir@topwealth.cc

FAQ

What is the minimum share price TWG needs to maintain for Nasdaq compliance?

TWG needs to maintain a minimum bid price of $1.00 per share to comply with Nasdaq Listing Rule 5550(a)(2).

When is TWG's deadline to regain Nasdaq compliance?

TWG has until June 9, 2025, to regain compliance with the minimum bid price requirement.

How can TWG regain Nasdaq compliance?

TWG can regain compliance if its share price closes at or above $1.00 for a minimum of 10 consecutive business days before June 9, 2025.

What happens if TWG fails to meet the June 9, 2025 deadline?

If TWG fails to meet the deadline, it may be eligible for additional time if it meets other listing requirements, or face potential delisting from Nasdaq.

Will TWG's stock continue trading during the compliance period?

Yes, TWG's shares will continue trading uninterrupted on Nasdaq under the ticker 'TWG' during the compliance period.