Meiwu Technology Company Limited Received Nasdaq Notification Letter Regarding Bid Price Deficiency

Rhea-AI Summary

Meiwu Technology Company (NASDAQ: WNW) has received a notification from Nasdaq regarding its failure to meet the minimum bid price requirement. The company's ordinary shares have been trading below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). WNW has until March 10, 2025, to regain compliance by maintaining a closing bid price of at least $1 for a minimum of 10 consecutive business days. If unsuccessful, the company may be eligible for an additional 180-day compliance period, provided it meets other listing requirements and expresses intent to cure the deficiency, possibly through a reverse stock split.

Positive

• None.

Negative

• Stock price has fallen below $1.00 for 30 consecutive business days
• Risk of potential delisting from Nasdaq if compliance is not regained
• Possible need for a reverse stock split to meet listing requirements

Insights

Financial Analyst

Meiwu Technology's Nasdaq listing is at risk due to their share price falling below $1 for 30 consecutive business days. This situation often signals financial distress or market skepticism about a company's prospects. The 180-day compliance period, potentially extendable, gives WNW time to address this issue. However, failure to meet the minimum bid requirement could lead to delisting, severely impacting investor confidence and the company's ability to raise capital. A potential reverse stock split might be considered as a short-term fix, but it doesn't address underlying business challenges. Investors should closely monitor WNW's financial performance and any strategic moves to boost investor confidence in the coming months.

Market Research Analyst

This notification reflects broader market sentiment towards WNW and possibly the sector it operates in. The extended period of low share price suggests a lack of investor interest or concerns about the company's growth prospects. It's important to analyze WNW's recent financial reports and market position to understand the root causes. If this is an industry-wide trend, it could indicate systemic challenges. However, if it's company-specific, it might point to operational or strategic issues unique to WNW. The company's response to this situation, including any plans to improve financial performance or enhance shareholder value, will be critical in determining its future market perception and share price trajectory.

Legal Expert

The Nasdaq notification triggers a critical compliance period for WNW. While the initial 180-day window provides some breathing room, the company faces significant legal and regulatory challenges. Failure to meet listing requirements could result in forced delisting, potentially breaching covenants in financing agreements and triggering investor lawsuits. Management must carefully navigate this period, ensuring all public communications and actions comply with securities laws to avoid additional regulatory scrutiny. The mention of a possible reverse stock split as a remedy should be approached cautiously, as it requires shareholder approval and can sometimes be viewed negatively by the market. WNW's board should consider forming a special committee to oversee compliance efforts and explore all strategic options.

Shenzhen, China, Sept. 11, 2024 (GLOBE NEWSWIRE) -- Meiwu Technology Company Limited (“WNW” or the “Company”), (NASDAQ: WNW) announced today that on September 10, 2024, the Company received a notification letter from the Nasdaq Listing Qualifications Staff of The NASDAQ Stock Market LLC (“Nasdaq”) notifying the Company that the minimum bid price per share for its ordinary shares has been below $1.00 for a period of 30 consecutive business days and the Company therefore no longer meets the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2).

The notification received has no immediate effect on the listing of the Company’s ordinary shares on Nasdaq. Under the Nasdaq Listing Rules, the Company has until March 10, 2025, to regain compliance. If at any time during such 180-day period the closing bid price of the Company’s ordinary shares is at least $1 for a minimum of 10 consecutive business days, Nasdaq will provide the Company written confirmation of compliance.

If the Company does not regain compliance during such 180-day period, the Company may be eligible for an additional 180 calendar days, provided that the Company meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq except for Nasdaq Listing Rule 5550(a)(2), and provide a written notice of its intention to cure this deficiency during the second compliance period, by effecting a reverse stock split, if necessary.

About Meiwu Technology Company Limited

Meiwu Technology Company Limited is a British Virgin Islands company incorporated on December 4, 2018, and conduct our business in China through our subsidiaries and variable interest entity, Meiwu Zhishi Technology (Shenzhen) Co., Ltd (“VIE”). The VIE is an online and mobile commerce company and conduct our business through our online retail store on the website www.wnw108.com. The VIE sell a myriad of food products on the website all the food products sold on the website are from the suppliers. The VIE do not sell genetically modified food and committed to providing our customers with safe, high-quality, nutritious, tasty and non-genetically modified food products through our portfolio of trusted and well-known suppliers. Optimizing the Website and real-time data, the VIE able to respond to and match supply with demand for food products in keeping with consumer trends. On June 23, 2022, we had completed the acquisition of Mahaotiaodong (Xiamen) Technology Company Limited (“Mahao”). Mahao is a company engaging in providing internet access and related services based in Xiamen, China. Mahao operated a short message service platform to send customized content to terminal customers. Mahao is a mobile information service provider with rich industry experience. Enterprise Short Message Service (“SMS”) is currently the main business form of Mahao. Mahao utilizes its accumulated system development technology and business understanding based on customers’ industry to provide professional enterprise SMS services to customers. Mahao mainly provides customers with a complete set of services around enterprise SMS through various forms such as customized system development, enterprise instant messaging platform, API system docking, etc., including early debugging and opening of customer and Mahao platform docking, maintenance and upgrading of customer SMS operation system during operation, and solving problems such as delay in SMS transmission, ensuring smooth and fast SMS transmission. At the same time, Mahao takes auditing information security and optimizing customer experience as its responsibility. Through a rigorous program, mobile information content is audited to ensure that various enterprise SMS messages, including information verification, user notifications, member reminders, and marketing promotion, can be safely and effectively delivered to information recipients. On the basis of ensuring efficient transmission of mobile information and content security, Mahao provides various enterprise SMS services, including mobile business scenario construction, product operation support, consumer relationship management and support, for various financial, internet, e-commerce, express logistics and other enterprise customers.

Safe Harbor Statement

Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company’s filings with the Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.

Contact
Meiwu Technology Company Limited
Xinliang Zhang
Email: meiwuBS@usmeiwu.com

FAQ

What is the deadline for WNW to regain compliance with Nasdaq's minimum bid price requirement?

Meiwu Technology Company (WNW) has until March 10, 2025, to regain compliance with Nasdaq's minimum bid price requirement.

How can WNW regain compliance with Nasdaq's minimum bid price rule?

WNW can regain compliance if its closing bid price is at least $1 for a minimum of 10 consecutive business days before March 10, 2025.

What happens if WNW fails to meet Nasdaq's minimum bid price requirement by March 10, 2025?

If WNW fails to meet the requirement by March 10, 2025, it may be eligible for an additional 180-day compliance period, provided it meets other listing standards and intends to cure the deficiency.

Is WNW at immediate risk of being delisted from Nasdaq due to the bid price deficiency?

No, the notification has no immediate effect on WNW's listing on Nasdaq. The company has been given time to regain compliance.