ATA Creativity Global Announces Receipt of a Bid Deficiency Notice from Nasdaq

The notice has no immediate listing effect, but compliance requires a sustained recovery in the ADS closing bid price.

Rhea-AI Summary

ATA Creativity Global (NASDAQ: AACG) received a Nasdaq notice on September 29, 2026, that its depositary shares failed the minimum bid-price requirement.

The American Depositary Shares (ADSs), each representing two common shares, had traded below $1.00 for 31 consecutive business days. The notice has no immediate effect on their listing. The company has until March 29, 2027 to regain compliance by maintaining a closing bid price of at least $1 for a minimum of 10 consecutive business days. An additional 180 calendar days may be available if it meets the specified other listing standards and provides written notice of its intention to cure the deficiency, through a reverse stock split if necessary.

1 point · 0 major

NegativeiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Minor pointNasdaq listing is not immediately affected by the bid-price deficiency notice.

Negative

• Moderate pointADS bid price below $1.00 for 31 consecutive business days triggered noncompliance with Nasdaq Rule 5550(a)(2).
• Minor point. Forward-looking: it has not happened yet and may not happen.March 29, 2027 compliance deadline requires closing bids of at least $1 for a minimum of 10 consecutive business days.
• Minor point. Forward-looking: it has not happened yet and may not happen.Additional 180 calendar days depend on other listing standards and written intent to cure, with a reverse split if necessary.

Key Figures

Bid price deficiency: Below $1.00 for 31 consecutive business days Compliance deadline: March 29, 2027 Compliance price condition: At least $1 for 10 consecutive business days +1 more

Bid price deficiency

Below $1.00 for 31 consecutive business days

Nasdaq minimum bid price requirement

Compliance deadline

March 29, 2027

Deadline to regain compliance

Compliance price condition

At least $1 for 10 consecutive business days

Closing bid price condition for Nasdaq confirmation

Additional compliance period

180 calendar days

Potential extension subject to Nasdaq requirements

Key Terms

american depositary shares, par value, reverse stock split

3 terms

american depositary shares financial

"minimum bid price per share for its American Depositary Shares"

American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.

par value financial

"two common shares, par value $0.01 per share"

Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.

reverse stock split financial

"by effecting a reverse stock split, if necessary"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Beijing, China, Oct. 02, 2026 (GLOBE NEWSWIRE) -- ATA Creativity Global (“AACG” or the “Company”), (NASDAQ: AACG) announced today that on September 29, 2026, 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 American Depositary Shares (the “ADSs”), each representing two common shares, par value $0.01 per share, has been below $1.00 for a period of 31 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 ADSs on Nasdaq. Under the Nasdaq Listing Rules, the Company has until March 29, 2027 to regain compliance. If at any time during such 180-day period the closing bid price of the Company’s ADSs 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 ATA Creativity Global

ATA Creativity Global has been engaged in the business of providing international educational services company, with a focus on quality learning experiences that cultivate and enhance students’ creativity. As part of the Company’s ongoing business transformation, it completed the disposition of certain subsidiaries and variable interest entity on June 30, 2026, while continuing to operate its education business through its subsidiary in mainland China. For more information, please visit AACG’s website at https://aacg.online.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. 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. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following:  the Company’s goals and strategies; the Company’s future business development; the Company’s future acquisition opportunities; the Company’s ability to identify any acquisition opportunities that fit with our business strategies; the Company’s ability to consummate an attractive acquisition and realize the benefits of such transaction; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission.  For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For investor and media inquiries, please contact:

At the Company
ATA Creativity Global
Ruobai Sima, CFO
+86 10 6518 1133 x 5518
simaruobai@acgedu.cn

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why did ATA Creativity Global (AACG) receive a Nasdaq bid-price deficiency notice?

ATA Creativity Global received the notice because its ADS bid price remained below $1.00 for 31 consecutive business days, failing Nasdaq Listing Rule 5550(a)(2). The notice was received on September 29, 2026, and has no immediate effect on the ADS listing.

How can ATA Creativity Global (AACG) regain Nasdaq bid-price compliance?

ATA Creativity Global has until March 29, 2027 to maintain an ADS closing bid price of at least $1 for a minimum of 10 consecutive business days. Nasdaq would then provide written confirmation of compliance. A further 180 calendar days may be available subject to the specified listing standards and written intention to cure the deficiency.