Senmiao Technology Regains Compliance with Nasdaq Minimum Bid Price Listing Requirement

Rhea-AI Summary

Senmiao Technology (AIHS) has announced that it has regained compliance with the minimum bid price requirement under the Nasdaq Listing Rules. The Company's common stock closed at $1.00 per share or greater for 20 consecutive business days, leading to compliance with Listing Rule 5550(a)(2).

Market Analyst

The communication from Nasdaq to Senmiao Technology regarding regained compliance with the minimum bid price is a positive development for the company's standing on the stock market. Maintaining the minimum bid price is essential for continued listing on a major exchange like Nasdaq, which typically results in better visibility, liquidity and access to capital for a company. The fact that Senmiao's stock maintained a closing bid price of $1.00 or greater for 20 consecutive business days indicates a restored investor confidence or a successful strategic maneuver, possibly a reverse stock split or positive business developments.

For stakeholders, this can be seen as a sign of stability and may potentially improve the attractiveness of Senmiao's stock. However, it is important to note that while compliance with stock price requirements is a fundamental aspect of a public company's health, it does not directly reflect the company's operational performance or financial stability. Investors should consider the broader context of the company's financial health and market position.

Financial Analyst

Regaining compliance with the Nasdaq's minimum bid price requirement is a critical step for Senmiao Technology in maintaining its appeal to institutional investors and ensuring its shares remain a viable instrument for raising capital. The compliance alleviates the immediate risk of delisting, which could have led to reduced share liquidity and limited access to financing. This development may also have a positive impact on the company's market perception, potentially leading to an uptick in the stock price as the fear of delisting abates.

However, investors should conduct a thorough analysis of the company's financials and growth prospects. Compliance with Nasdaq's listing rules does not equate to financial health. It's essential to assess whether the compliance was due to intrinsic improvements in the company's operations or external financial maneuvers. The long-term value of the stock will be more closely tied to the company's financial performance and its strategic position within the competitive online ride-hailing market in China.

CHENGDU, China, March 28, 2024 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao" or the "Company") (Nasdaq: AIHS), a financing and servicing company focused on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced that it has received a letter from the Nasdaq Listing Qualifications Staff, dated March 26, 2024, notifying the Company that it has regained compliance with the minimum bid price requirement under the Listing Rules of The Nasdaq Stock Market. The letter noted that as a result of the closing bid price of the Company's common stock having been at $1.00 per share or greater for 20 consecutive business days, from February 27, 2024 to March 25, 2024, the Company has regained compliance with Listing Rule 5550(a)(2), and the matter is now closed.

About Senmiao Technology Limited

Headquartered in Chengdu, Sichuan Province, Senmiao provides automobile transaction and related services including sales of automobiles, facilitation and services for automobile purchases and financing, management, operating leases, guarantees and other automobile transaction services, as well as operates its own ride-hailing platform aimed principally at the growing online ride-hailing market in Senmiao's areas of operation in China. For more information about Senmiao, please visit: http://www.senmiaotech.com. Senmiao routinely provides important updates on its website.

Cautionary Note Regarding Forward-Looking Statements 

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements (including those relating to the operation of Senmiao's ride-hailing platform) are subject to significant risks, uncertainties and assumptions, including those detailed from time to time in the Senmiao's filings with the SEC, and represent Senmiao's views only as of the date they are made and should not be relied upon as representing Senmiao's views as of any subsequent date. Senmiao undertakes no obligation to publicly revise any forward-looking statements to reflect changes in events or circumstances. 

For more information, please contact:

At the Company:

Yiye Zhou
Email: edom333@ihongsen.com
Phone: +86 28 6155 4399

Investor Relations:

The Equity Group Inc.                                                                      In China
Carolyne Sohn, Vice President                                                        Lucy Ma, Associate
+1 408-538-4577                                                                             +86 10 5661 7012
csohn@equityny.com                                                                       lma@equityny.com

Alice Zhang, Associate
+1 212-836-9610
azhang@equityny.com 

© 2024 Senmiao Technology Ltd. All rights reserved.

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SOURCE Senmiao Technology Limited

What did Senmiao Technology announce regarding Nasdaq Listing Qualifications?

Senmiao Technology announced that it has regained compliance with the minimum bid price requirement under the Nasdaq Listing Rules.

What was the closing bid price of the Company's common stock for compliance?

The closing bid price of the Company's common stock was at $1.00 per share or greater for 20 consecutive business days.

Which Listing Rule did the Company comply with?

The Company regained compliance with Listing Rule 5550(a)(2) under the Nasdaq Listing Rules.