Abits Group Inc Receives NASDAQ Minimum Bid Price Requirement Extension

Rhea-AI Summary

Abits Group Inc (NASDAQ: ABTS), a bitcoin mining company operating in the United States, has received an extension from NASDAQ to comply with its minimum bid price requirement. The company now has an additional 180 calendar days, until April 7, 2025, to meet the compliance standards.

To regain compliance, Abits Group's common shares must maintain a closing bid price of at least $1.00 for a minimum of ten consecutive business days before the new deadline. This extension provides the company with more time to address its stock price issues and maintain its NASDAQ listing.

Positive

• Received 180-day extension from NASDAQ for minimum bid price compliance
• Additional time to address stock price issues and maintain NASDAQ listing

Negative

• Current stock price below NASDAQ's $1.00 minimum bid requirement
• Risk of potential delisting if compliance is not achieved by April 7, 2025

Insights

Financial Analyst

The NASDAQ extension for Abits Group Inc is a double-edged sword. While it provides temporary relief from potential delisting, it also signals ongoing financial challenges. The company's inability to maintain a $1.00 share price reflects weak market confidence and potential liquidity issues.

This extension is not uncommon for smaller cap companies, especially in volatile sectors like cryptocurrency mining. However, it puts significant pressure on ABTS to improve its financial performance or consider alternative measures such as a reverse stock split. The 180-day window is important for the company to demonstrate value to investors and regain compliance.

Investors should closely monitor ABTS's strategic moves in the coming months, including potential capital raises, operational improvements, or corporate restructuring. The bitcoin mining sector's cyclical nature and regulatory uncertainties add layers of complexity to the company's path forward.

Hong Kong, Oct. 11, 2024 (GLOBE NEWSWIRE) -- Abits Group Inc (the “Company”) (NASDAQ: ABTS), a company engaged in bitcoin mining and related services in the United States, announced today on October 10, 2024, it received notification from The Nasdaq Stock Market LLC (“NASDAQ”) confirming the Company has been granted an additional 180 calendar day period for compliance under its minimum bid price requirement through April 7, 2025. To regain compliance with NASDAQ’s minimum bid price requirement, the closing bid price of the Company’s common shares needs to be at least $1.00 per share or greater for at least ten consecutive business days by April 7, 2025. 

About Abits Group Inc

Abits Group Inc (formerly Moxian (BVI) Inc), a company organized in the British Virgin Islands in May 2021, is the surviving company following its merger with Moxian, Inc. in August 2021. Abits Group Inc is a new generation digital company, with self-mining operations in the State of Tennessee through a wholly owned subsidiary, ABIT USA, Inc.

Forward-Looking Statements

This announcement contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements are based on the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and may be governed by terms such as “will,” “expect,” “anticipate,” “future,” “intend,” “plan,” Believe, “estimate”, “potential”, “continue”, “in progress”, “goal”, “guidance expectations” and similar statements are identified. The company may also include in its periodic reports to the US Securities and Exchange Commission (“SEC”), annual reports to shareholders, press releases and other written materials, as well as oral statements from third parties to the company’s management, directors or employees. Any statements that are not historical facts, including statements about the company’s philosophy and expectations, are forward-looking statements that involve factors, risks, and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These factors and risks include, but are not limited to, the following: company’s goals and strategies; future business development; financial status and operating results; expected growth of bitcoin mining industry and Internet media marketing industry; demand and acceptance of the company’s products and services; the relationship between the company and strategic partners; industry competition; and policies and regulations related to the company’s structure, business and industry. More detailed information about these and other risks and uncertainties is included in the company’s filings with the Securities and Exchange Commission. All information provided in the company’s introduction is the latest information as of the date of publication of the company. Except as provided by applicable law, the company is not obligated to update such information.

For further information, please contact:

Wanhong Tan
Chief Financial Officer
+852 9855 6575
yf@abitgrp.com

FAQ

What is the new deadline for Abits Group Inc (ABTS) to comply with NASDAQ's minimum bid price requirement?

Abits Group Inc (ABTS) has been granted an extension until April 7, 2025, to comply with NASDAQ's minimum bid price requirement.

How can Abits Group Inc (ABTS) regain compliance with NASDAQ's minimum bid price requirement?

To regain compliance, Abits Group Inc (ABTS) must maintain a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days before April 7, 2025.

What happens if Abits Group Inc (ABTS) fails to meet NASDAQ's minimum bid price requirement by the new deadline?

If Abits Group Inc (ABTS) fails to meet the minimum bid price requirement by April 7, 2025, the company may face potential delisting from the NASDAQ stock exchange.

What is Abits Group Inc's (ABTS) primary business activity?

Abits Group Inc (ABTS) is engaged in bitcoin mining and related services in the United States.