SHANGHAI, Nov. 12,
2024 /PRNewswire/ -- XChange TEC.INC (NASDAQ:
XHG) (the "Company"), today announced that it has received a notice
(the "Notice") from The Nasdaq Stock Market LLC ("Nasdaq") dated
November 8, 2024 stating that the
Company is not in compliance with the requirement to maintain a
minimum bid price of $1 per share as
set forth under Nasdaq Listing Rule 5550(a)(2) (the "Bid Price
Rule") for continued listing on The Nasdaq Capital Market.
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. Based upon
the closing bid price of the Company's American Depositary Shares
("ADSs") for the last 30 consecutive business days, the
Company no longer meets this requirement. Normally, a company would
be afforded a 180-calendar day period to demonstrate compliance
with the Bid Price Rule. However, pursuant to Nasdaq Listing Rule
5810(c)(3)(A)(iv), the Company is not eligible for any compliance
period specified in Rule 5810(c)(3)(A) due to the fact that the
Company effected one or more reverse stock splits over the prior
two-year period with a cumulative ratio of 250 shares or more to
one. Accordingly, unless the Company requests a hearing before a
Hearings Panel (the "Panel"), trading of the Company's ADSs will be
suspended. Accordingly, the Company intends to timely request a
hearing before the Panel and such request will automatically stay
any suspension or delisting action pending the Panel's decision of
the hearing. There can be no assurance as to the decision of the
Panel.
About XChange TEC.INC
XChange TEC.INC, through its subsidiaries and consolidated
variable interest entities, operates insurance agency and insurance
technology business. The insurance agency is PRC-licensed and
operates nationwide in the PRC with a wide range of insurance
products underwritten by major insurance companies, including
industry leading and/or state-owned property and casualty insurance
companies as well as certain regional property and casualty
insurance companies in the PRC. The insurance technology
business is focused on operating and developing insurance
technology in the PRC, including developing SaaS platform to
connect consumers and underwriting support.
Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements include, among
others, statements regarding the Company's plans to regain
compliance with Nasdaq Rules for continued listing. The Company's
actual results may differ materially from those expressed in any
forward-looking statements as a result of various factors and
uncertainties. The reports filed by the Company with the U.S.
Securities and Exchange Commission discuss these and other
important factors and risks that may affect the Company's business,
results of operations and financial conditions. For these reasons,
among others, investors are cautioned not to place undue reliance
upon any forward-looking statements in this press release. The
Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
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SOURCE XChange TEC.INC