Viomi Announces Receipt of Minimum Bid Price Notice from Nasdaq

Rhea-AI Summary

Viomi Technology Co., (NASDAQ: VIOT) received a notification from Nasdaq about non-compliance with the minimum bid price requirement. The company has 180 days to regain compliance by maintaining a closing bid price of at least US$1.00 per share for ten consecutive business days.

Positive

• None.

Negative

• Viomi Technology Co., received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, indicating potential financial challenges.
• The company faces the risk of delisting from Nasdaq if it fails to meet the compliance requirements within the specified timeframe.

Insights

Market Analyst

The notice received by Viomi Technology from Nasdaq regarding the non-compliance with the minimum bid price rule is a signal of potential risk to investors and could have implications on investor confidence. When a company's share price falls below $1, it often reflects underlying concerns about the company's financial health, market position, or future prospects. While the company has a 180-day period to regain compliance, the pressure is on to improve its stock performance, which might involve strategic initiatives or financial restructuring.

From a market perspective, such notifications can lead to increased volatility in the stock's trading. Investors may react to the perceived risk of delisting, which could lead to a further decline in share price or increased trading volume as investors adjust their positions. However, if Viomi successfully implements measures to boost its stock price, this could potentially lead to a positive reevaluation of the company's value.

Financial Analyst

Viomi's current challenge with Nasdaq's minimum bid price requirement could impact its access to capital and cost of financing. The market often interprets the threat of delisting as a negative indicator, which can affect not only the stock's liquidity but also the company's ability to raise funds through equity financing. It is important for investors to monitor the company's financials and any strategic moves it makes to address this issue.

Investors should also consider the company's performance relative to its peers in the IoT and smart home technology sector. A comparative analysis might reveal whether Viomi's stock price issue is a symptom of broader market trends or specific to the company's operations and strategy.

Compliance Specialist

The notification from Nasdaq is a procedural outcome of the exchange's regulatory framework designed to maintain market standards. For Viomi, the path to compliance likely involves either a reverse stock split or improving its financial performance to organically boost the stock price. The company's statement about taking 'all reasonable measures' to regain compliance is expected, but the actual steps and their feasibility will be critical for stakeholders.

Investors should be aware of the timeline and specific criteria for regaining compliance. The requirement that the closing bid price of the ADSs must be at least $1.00 per share for a minimum of ten consecutive business days introduces a layer of complexity, as short-term fluctuations could extend the compliance period or even require additional measures to maintain the required bid price level.

GUANGZHOU, China, March 27, 2024 /PRNewswire/ -- Viomi Technology Co., Ltd ("Viomi" or the "Company") (NASDAQ: VIOT), a leading IoT @ Home technology company in China, today announced that it has received a written notification from the staff of the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") dated March 26, 2024, indicating that because the closing bid price of the Company's American Depositary Shares ("ADSs") for the last 30 consecutive business days was below US$1.00 per share, the Company no longer meets the Nasdaq minimum bid price requirement, set forth in Nasdaq Listing Rule 5450(a)(1).

Pursuant to the Nasdaq Listing Rules, the Company is provided with a compliance period of 180 calendar days, or until September 23, 2024, to regain compliance. If at any time during the 180-day compliance period, the closing bid price of the Company's ADSs is at lease US$1.00 per share for a minimum of ten consecutive business days, Nasdaq will provide the Company written confirmation of compliance and that matter will be closed.

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 Viomi Technology

Viomi's mission is to redefine the future home via the concept of IoT @ Home.

Viomi has developed a unique IoT @ Home platform consisting of an ecosystem of innovative IoT-enabled smart home products, together with a suite of complementary consumable products and value-added businesses. This platform provides an attractive entry point into the consumer home, enabling consumers to intelligently interact with a broad portfolio of IoT products in an intuitive and human-like manner to make daily life more convenient, efficient and enjoyable, while allowing Viomi to grow its household user base and capture various additional scenario-driven consumption events in the home environment.

For more information, please visit: http://ir.viomi.com.

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 business outlook and quotations from management in this announcement, as well as Viomi's strategic and operational plans, contain forward-looking statements. Viomi may also make written or oral forward-looking statements in its periodic reports to the United States Securities and Exchange Commission (the "SEC"), 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 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, including but not limited to the following: the Company's growth strategies; the cooperation with Xiaomi, the recognition of the Company's brand; trends and competition in global IoT-enabled smart home market; development and commercialization of new products, services and technologies; governmental policies and relevant regulatory environment relating to the Company's industry and/or aspects of the business operations and general economic conditions in China and around the globe, 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 SEC. All information provided in this press release is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact: 

In China:

Viomi Technology Co., Ltd
Claire Ji
E-mail: ir@viomi.com.cn 

Piacente Financial Communications
Hui Fan
Tel: +86-10-6508-0677
E-mail: viomi@tpg-ir.com 

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: viomi@tpg-ir.com

View original content:https://www.prnewswire.com/news-releases/viomi-announces-receipt-of-minimum-bid-price-notice-from-nasdaq-302100480.html

SOURCE Viomi Technology Co., Ltd

FAQ

What notification did Viomi Technology Co., receive from Nasdaq?

Viomi Technology Co., received a notification from Nasdaq stating that its closing bid price for the last 30 consecutive business days was below US$1.00 per share, leading to non-compliance with the minimum bid price requirement.

What is the compliance period provided by Nasdaq to Viomi Technology Co., ?

Nasdaq has provided Viomi Technology Co., with a compliance period of 180 calendar days, until September 23, 2024, to regain compliance by maintaining a closing bid price of at least US$1.00 per share for ten consecutive business days.

What actions will Viomi Technology Co., take to address the non-compliance issue?

Viomi Technology Co., stated that it will take all reasonable measures to regain compliance with the Nasdaq minimum bid price requirement.

What will happen if Viomi Technology Co., fails to meet the compliance requirements within the specified timeframe?

If Viomi Technology Co., fails to maintain a closing bid price of at least US$1.00 per share for ten consecutive business days within the compliance period, it risks potential delisting from Nasdaq.