UTime Limited Regains Compliance with Nasdaq Minimum Closing Bid Price Rule

Rhea-AI Summary

UTime (Nasdaq: WTO), a mobile device manufacturing company, has regained compliance with Nasdaq's minimum bid price requirement. The company received formal notification from Nasdaq that it has met the listing rule 5550(a)(2), which mandates a minimum bid price of $1.00 per share. This compliance was achieved after UTime's closing bid price remained at or above $1.00 for 11 consecutive business days from July 26, 2024 to August 9, 2024. As a result, the bid price deficiency matter has been closed, ensuring UTime's continued listing on the Nasdaq Stock Market.

Positive

• Regained compliance with Nasdaq listing requirements
• Maintained closing bid price above $1.00 for 11 consecutive business days
• Resolved bid price deficiency issue

Negative

• None.

Insights

Financial Analyst

UTime 's regaining of Nasdaq compliance is a positive development for the company's market position. This resolution of the minimum bid price issue removes a significant risk of delisting, which could have severely impacted investor confidence and the company's ability to raise capital. However, it's important to note that while compliance has been achieved, the stock price barely met the minimum requirement, indicating potential ongoing challenges.

Investors should consider that this compliance doesn't necessarily reflect improved financial performance or business fundamentals. It's essential to examine UTime's revenue growth, profit margins and market share in the competitive mobile device manufacturing industry. The company's focus on cost-effective products for low-income markets could be a double-edged sword, potentially limiting profitability while expanding market reach. Future stability of the stock price above the $1 threshold will be a key indicator to watch.

Market Research Analyst

UTime's compliance with Nasdaq rules is a short-term relief but doesn't address underlying market challenges. The mobile device industry is highly competitive, with established players dominating the market. UTime's strategy to target low-income consumers in emerging markets could provide a niche advantage, but it also faces risks:

• Thin profit margins in budget device segment
• Potential market saturation in emerging economies
• Currency fluctuations impacting costs and revenues

Investors should monitor UTime's market share growth, especially in key emerging markets and its ability to differentiate its products in a crowded field. The company's success will largely depend on balancing cost-effectiveness with innovation to attract price-sensitive consumers while maintaining profitability.

NEW YORK, Aug. 13, 2024 (GLOBE NEWSWIRE) -- UTime Limited (“UTime” or the “Company”) (Nasdaq: WTO), a mobile device manufacturing company committed to providing cost effective products and solutions to consumers globally and helping low-income individuals from established and emerging markets, announced today that it received a formal notification from the Nasdaq Stock Market LLC (“Nasdaq”) that the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2), which requires the Company’s ordinary shares to maintain a minimum bid price of $1.00 per share.

The Nasdaq staff made this determination of compliance after the closing bid price of the Company’s common stock has been at $1.00 per share or greater for the last 11 consecutive business days from July 26, 2024 to August 9, 2024. Accordingly, the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2) and this bid price deficiency matter is now closed.

About UTime

UTime Ltd., established in 2008, is committed to providing cost-effective mobile devices to consumers globally and to helping low-income individuals from established markets, including the United States and emerging markets such as India and other countries in South Asia and Africa have better access to updated mobile technology. Since July 2023, we have added smart electric vehicle chargers into our product lines in response to the global demand for energy conservation and carbon reduction. For more information, visit the Company’s website at http://www.utimeworld.com/.

Forward-Looking Statements

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the ability of the Company to regain compliance with Nasdaq continued listing requirements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed in the “Risk Factors” section of the Annual Report in Form 20-F filed with the SEC on August 8, 2023. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

For more information, please contact:

PR Email: pr@westock.com

FAQ

What Nasdaq rule did UTime (UTME) comply with on August 13, 2024?

UTime (UTME) regained compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share.

How long did UTime (UTME) maintain its stock price above $1.00 to regain Nasdaq compliance?

UTime (UTME) maintained its closing bid price at $1.00 or above for 11 consecutive business days, from July 26, 2024 to August 9, 2024.

What was the outcome of UTime 's (UTME) compliance with Nasdaq's minimum bid price rule?

As a result of regaining compliance, UTime 's (UTME) bid price deficiency matter was closed, ensuring its continued listing on the Nasdaq Stock Market.