Antelope Enterprise Holdings Limited Receives Deficiency Letter from NASDAQ Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Antelope Enterprise Holdings (AEHL) has received a deficiency letter from Nasdaq due to non-compliance with the minimum bid price requirement of $1.00 per share. The company has been given an initial 180-day period until January 22, 2024, to regain compliance. If AEHL's shares close at or above $1.00 for at least 10 consecutive business days, it will regain compliance. A second 180-day period may be granted if needed. The company may consider options including a reverse stock split to meet requirements, though compliance is not guaranteed.

Positive

• Potential eligibility for additional 180-day compliance period if initial period fails
• Right to appeal any delisting determination to NASDAQ Listing Qualifications Panel

Negative

• Stock trading below $1.00 minimum bid requirement for 30 consecutive business days
• Risk of potential delisting from Nasdaq if compliance not achieved
• Possible need for reverse stock split which could affect share value

Insights

Financial Analyst

This NASDAQ deficiency notice represents a significant risk for AEHL shareholders. The company's consistent sub-$1.00 share price threatens its NASDAQ listing status, with potential delisting if compliance isn't achieved by April 30, 2025. While the initial 180-day compliance period provides some breathing room, the micro-cap company ($4M market cap) faces substantial challenges.

The most likely remedy would be a reverse stock split, which typically doesn't address underlying business fundamentals and often leads to continued price deterioration. The dual-business model combining natural gas power generation with Chinese livestreaming e-commerce hasn't inspired market confidence. Delisting would severely impact liquidity and institutional investment access, potentially forcing the stock to trade over-the-counter.

NEW YORK, NY, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Antelope Enterprise Holdings Limited (NASDAQ Capital Market: AEHL) (“Antelope Enterprise”, “AEHL” or the “Company”), a provider of electricity through natural gas power generation, and the majority interest owner of KylinCloud, a livestreaming e-commerce business in China, announced today that on November 1, 2024, it received a deficiency letter from the Listing Qualifications Department (the “Staff”) of the Nasdaq Stock Market (“Nasdaq”). The deficiency letter advised that for the last 30 consecutive business days the bid price for the Company’s Class A ordinary shares had closed below the minimum $1.00 per share requirement for continued inclusion on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”). The deficiency letter does not result in the immediate delisting of the Company’s Class A ordinary shares from the Nasdaq Capital Market.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A) (the “Compliance Period Rule”), the Company has been provided an initial period of 180 calendar days, or until January 22, 2024 (the “Compliance Date”), to regain compliance with the Bid Price Rule. If, at any time before the Compliance Date, the bid price for the Company’s Class A ordinary shares closes at $1.00 or more for a minimum of 10 consecutive business days as required under the Compliance Period Rule, the Staff will provide written notification to the Company that it complies with the Bid Price Rule, unless the Staff exercises its discretion to extend this 10 day period pursuant to Nasdaq Listing Rule 5810(c)(3)(H). If the Company is not in compliance with the Bid Price Rule by April 30, 2025, the Company may be afforded a second 180 calendar day period to regain compliance. To qualify, the Company would be required to meet the continued listing requirement for the market value of its publicly held shares and all other initial listing standards for The Nasdaq Capital Market, except for the minimum bid price requirement. In addition, the Company would be required to notify Nasdaq of its intent to cure the minimum bid price deficiency, which may include, if necessary, implementing a reverse stock split.

If the Company does not regain compliance with the Bid Price Rule by the Compliance Date and is not eligible for an additional compliance period at that time, the Staff will provide written notification to the Company that its Class A ordinary shares may be delisted. The Company would then be entitled to appeal the Staff’s determination to a NASDAQ Listing Qualifications Panel and request a hearing. There can be no assurance that, if the Company does appeal the delisting determination by the Staff to the NASDAQ Listing Qualifications Panel, that such appeal would be successful.

The Company intends to monitor the closing bid price of its Class A ordinary shares and may, if appropriate, consider available options to regain compliance with the Bid Price Rule, which could include effecting a reverse stock split. However, there can be no assurance that the Company will be able to regain compliance with the Bid Price Rule.

About Antelope Enterprise Holdings Limited

Antelope Enterprise Holdings Limited (“Antelope Enterprise”, “AEHL” or the “Company”) engages in energy infrastructure solutions through natural gas power generation via its wholly owned subsidiary AEHL US LLC and holds a 51% ownership position in Hainan Kylin Cloud Services Technology Co. Ltd (“Kylin Cloud”), which operates a livestreaming e-commerce business in China. Kylin Cloud provides access to over 800,000 hosts and influencers. For more information, please visit our website at  https://aehltd.com.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this press release include, without limitation, the continued stable macroeconomic environment in the PRC, the PRC technology sectors continuing to exhibit sound long-term fundamentals, and our ability to continue to grow our energy, livestreaming ecommerce, business management and information system consulting businesses. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2023 and otherwise in our SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

Contact Information:
Antelope Enterprise Holdings Limited
Edmund Hen, Chief Financial Officer
Email: info@aehltd.com

Precept Investor Relations LLC
David Rudnick, Account Manager
Email: david.rudnick@preceptir.com
Phone: +1 646-694-8538

FAQ

What is the deadline for AEHL to regain Nasdaq compliance?

AEHL has until January 22, 2024, to regain compliance with Nasdaq's minimum bid price requirement.

What happens if AEHL stock price stays above $1.00 for 10 consecutive days?

If AEHL's stock closes at $1.00 or above for minimum 10 consecutive business days, the company will regain compliance with Nasdaq's bid price rule.

What options does AEHL have to maintain Nasdaq listing?

AEHL can implement a reverse stock split, appeal any delisting determination, or qualify for an additional 180-day compliance period if they meet other listing requirements.