Aesthetic Medical International Holdings Group Ltd. Announces Receipt of a Letter of Expected Delisting Determination From Nasdaq Staff and Intention to Request a Hearing before the Nasdaq Hearings Panel
Aesthetic Medical International Holdings Group Limited (AIH) announced its request for a hearing before the Nasdaq Hearings Panel to seek an extension for compliance with the minimum bid price requirement. The company had not regained compliance within the initial 180-day grace period and faces delisting unless a hearing is requested by March 13, 2024.
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The company is at risk of delisting from Nasdaq if it fails to regain compliance with the Minimum Bid Price Rule within the specified timeframe.
Aesthetic Medical International Holdings Group Limited's announcement of its intent to request a Nasdaq Hearings Panel for an extension to meet the minimum bid price requirement is a critical juncture for the company. The inability to maintain the minimum $1 bid price as per Nasdaq Listing Rule 5550(a)(2) signals potential liquidity issues and investor skepticism about the company's valuation. This development is particularly impactful for current and prospective investors as it raises concerns about the company's financial stability and future growth prospects. A delisting from a major exchange like Nasdaq often results in reduced visibility in the market, diminished investor confidence and limited access to capital markets, which can be detrimental to a company's growth trajectory.
Moreover, the trading of the company's securities on an over-the-counter (OTC) market post-delisting could result in lower trading volumes and higher volatility. This scenario typically leads to a more challenging environment for raising funds and dilutes the stock's attractiveness to institutional investors. It's imperative to monitor the company's strategic moves closely, including cost management and revenue enhancement initiatives, which could be pivotal in regaining compliance and investor trust.
The aesthetic medical services industry in China is characterized by its rapid growth and increasing consumer demand for cosmetic procedures. However, the sector is also highly competitive and fragmented, with numerous players vying for market share. Aesthetic Medical International Holdings Group's current regulatory challenge with Nasdaq could be symptomatic of broader market pressures, including aggressive pricing strategies, regulatory changes and shifts in consumer preferences. From a market perspective, the company's ability to navigate these challenges and articulate a clear strategic vision will be crucial in differentiating itself from competitors.
It's essential to assess the company's market positioning, service offerings and consumer engagement strategies. A successful turnaround plan could involve expanding into emerging markets, leveraging technological advancements, or forming strategic partnerships. These actions could potentially enhance the company's market share and improve its stock performance in the long term, notwithstanding the immediate hurdles posed by the Nasdaq compliance issue.
The formal process of requesting a hearing before the Nasdaq Hearings Panel is a legal recourse available to companies facing delisting. It provides an opportunity for Aesthetic Medical International Holdings Group to present a plan of compliance and argue for the continued listing of its securities. The legal intricacies of this process involve demonstrating a credible strategy to achieve and sustain compliance with Nasdaq's requirements, which may include measures such as a reverse stock split or other corporate actions.
While the company's securities remain tradable pending the hearing outcome, the overhang of potential delisting can still affect contractual agreements, such as debt covenants and partnerships, that may have clauses triggered by stock exchange listings. The company's legal team must navigate this process meticulously, ensuring transparent communication with stakeholders and adherence to SEC regulations. The outcome of the hearing will have significant legal implications for the company's operational and financial structure.
03/08/2024 - 05:30 PM
SHENZHEN, China, March 08, 2024 (GLOBE NEWSWIRE) -- Aesthetic Medical International Holdings Group Limited (Nasdaq: AIH) (the “Company” or “AIH”), a leading provider of aesthetic medical services in China, today announced that it will request a hearing before the Nasdaq Hearings Panel as the next step in the process in seeking an extension to satisfy the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Rule”) for continued listing on The Nasdaq Capital Market (“Nasdaq”).
Reference is made to the form 6-K of the Company filed with the Securities and Exchange Commission (the “SEC”) on September 8, 2023 (the “Previous Disclosure”) in relation to the letter the Company received from the Listing Qualifications Staff (the “Staff”) of Nasdaq notifying that, as of September 5, 2023, the Company’s securities had a closing bid price less than US$1.00 per share for more than 30 consecutive trading days, which is not in compliance with the minimum bid price requirement as set forth under Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq. The Company was provided a 180-calendar day grace period to regain compliance pursuant to Nasdaq Listing Rule 5810(c)(3)(A). All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Previous Disclosure.
On March 6, 2024, the Company received a notification letter (the “Notification Letter”) from the Staff of Nasdaq stating that, the Company has not regained compliance with the Minimum Bid Price Rule within the 180-calendar day grace period and is not eligible for a second 180-calendar day grace period. Accordingly, the Staff had determined to delist the Company’s securities from Nasdaq unless the Company requests a hearing no later than 4:00 p.m. Eastern Time on March 13, 2024. The Company intends to timely submit the request for a hearing. This request will ordinarily stay any further action by the Staff and the Company’s securities are expected to continue to be eligible to trade on Nasdaq at least pending the ultimate conclusion of the hearing process.
About Aesthetic Medical International Holdings Group Limited
AIH, known as “Peng’ai” in China, is a leading provider of aesthetic medical services in China. AIH operates through treatment centers that are spread across major cities in mainland China, with a major focus on the Guangdong-Hong Kong-Macau Greater Bay area and the Yangtze River Delta area. Leveraging over 20 years of clinical experience, AIH provides one-stop aesthetic service offerings, including surgical aesthetic treatments, non-surgical aesthetic treatments, general medical services, and other aesthetic services. For more information regarding the Company, please visit https://ir.aihgroup.net/
Cautionary Statements
This press release contains “forward-looking statements.” These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “anticipates”, “aims”, “future”, “intends”, “plans”, “believes”, “estimates”, “likely to” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These risks and uncertainties and others that relate to the Company’s business and financial condition are detailed from time to time in the Company’s SEC filings, and could cause the actual results to differ materially from those contained in any forward-looking statement. These forward-looking statements are made only as of the date indicated, and the Company undertakes no obligation to update or revise the information contained in any forward-looking statements, except as required under applicable law.
Investor Relations Contacts
For investor and media inquiries, please contact:
Aesthetic Medical International Holdings Group Limited
Email: ir@pengai.com.cn https://ir.aihgroup.net
Why did Aesthetic Medical International Holdings Group Limited (AIH) request a hearing before the Nasdaq Hearings Panel?
The company requested a hearing to seek an extension for compliance with the minimum bid price requirement.
What was the reason for the initial notification from Nasdaq?
The company's securities had a closing bid price less than US$1.00 per share for more than 30 consecutive trading days, leading to non-compliance with the minimum bid price requirement.
What is the consequence of not regaining compliance within the grace period?
The company faces delisting from Nasdaq unless a hearing is requested by March 13, 2024.
