UCLOUDLINK GROUP INC. Announces Receipt of Nasdaq Notification Regarding Minimum Market Value of Publicly Held Shares

Rhea-AI Summary

UCLOUDLINK GROUP INC. (NASDAQ: UCL) announced it received a notification from Nasdaq stating it no longer meets the minimum Market Value of Publicly Held Shares (MVPHS) requirement of $5,000,000, as its MVPHS was below this threshold for 30 consecutive business days.

The company has 180 days from September 22, 2022, to regain compliance. Management is evaluating options to ensure continued listing, including potentially transferring to the Nasdaq Capital Market. Failure to comply may lead to delisting.

Positive

• Management is exploring options to regain compliance with Nasdaq listing requirements.
• Potential to transfer to Nasdaq Capital Market if unable to meet current requirements.

Negative

• Failed to meet Nasdaq's minimum MVPHS requirement of $5,000,000.
• Risk of delisting if compliance is not regained within the grace period.

HONG KONG, Sept. 26, 2022 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (“UCLOUDLINK” or the “Company”) (NASDAQ: UCL), the world’s first and leading mobile data traffic sharing marketplace, today announced that it received a written notification from the Staff of the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”) dated September 22, 2022, indicating that the Company no longer meets the continued listing requirement of minimum Market Value of Publicly Held Shares (“MVPHS”) for the Nasdaq Global Market, as set forth in the Nasdaq Listing Rule 5450(b)(1)(C), because the Company’s MVPHS for the last 30 consecutive business days was below the minimum MVPHS requirement of US$5,000,000.

Pursuant to the Nasdaq Listing Rules, the applicable grace period to regain compliance is 180 calendar days, or until March 21, 2023. The Company can cure this deficiency if its MVPHS closes at US$5,000,000 or more for a minimum of ten consecutive business days during the compliance period. The Company’s management is looking into various options available to regain compliance and maintain its continued listing on The Nasdaq Global Market. In the event the Company does not regain compliance with the Rule prior to the expiration of the compliance period, it will receive written notification that its securities are subject to delisting. Alternatively, the Company may apply to transfer the Company’s securities to The Nasdaq Capital Market, subject to the Nasdaq Capital Market’s continued listing requirements.

About UCLOUDLINK GROUP INC.

UCLOUDLINK is the world’s first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Company’s products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing.

Safe Harbor Statement

This announcement 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. Among other things, the financial guidance and quotations from management in this announcement, as well as UCLOUDLINK’s strategic and operational plans, contain forward-looking statements. UCLOUDLINK 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 oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about UCLOUDLINK’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, including but not limited to the following: UCLOUDLINK’s strategies; UCLOUDLINK’s future business development, financial condition and results of operations; UCLOUDLINK’s ability to increase its user base and usage of its mobile data connectivity services, and improve operational efficiency; competition in the global mobile data connectivity service industry; changes in UCLOUDLINK’s revenues, costs or expenditures; governmental policies and regulations relating to the global mobile data connectivity service industry, general economic and business conditions globally and in China; the impact of the COVID-19 pandemic to UCLOUDLINK’s business operations and the economy in China and elsewhere generally; and assumptions underlying or related to any of the foregoing. 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 and in the attachments is as of the date of the press release, and UCLOUDLINK undertakes no duty to update such information, except as required under applicable law.

For more information, please contact:

UCLOUDLINK GROUP INC.

Jillian Zeng

Tel: +852-2180-6111

E-mail: ir@ucloudlink.com

Investor Relations:

The Equity Group Inc.

Alice Zhang, Investor Relations Analyst

Tel: +1-212-836-9610

E-mail: azhang@equityny.com

In China:

Lucy Ma, Associate

Tel: +86 10 5661 7012

E-mail: lma@equityny.com

FAQ

What is the recent Nasdaq notification for UCLOUDLINK (UCL)?

UCLOUDLINK received a notification indicating it no longer meets the minimum MVPHS requirement of $5,000,000 as of September 22, 2022.

How long does UCLOUDLINK have to regain Nasdaq compliance?

UCLOUDLINK has 180 days from September 22, 2022, to regain compliance.

What happens if UCLOUDLINK does not regain compliance with Nasdaq?

If compliance is not regained, UCLOUDLINK may face delisting.

Can UCLOUDLINK transfer to another market if delisted?

Yes, UCLOUDLINK may apply to transfer its securities to the Nasdaq Capital Market.