AirNet Announces Receipt of Deficiency Letter from Nasdaq
- None.
- Negative stockholders’ equity of approximately $25.3 million reported by the company.
- Failure to maintain a minimum of $2.5 million in stockholders’ equity.
- Risk of delisting from the Nasdaq Capital Market if compliance is not regained within the specified timeline.
The notification of non-compliance received by AirNet Technology Inc. from Nasdaq is a significant regulatory event that could impact investor confidence and the company's ability to raise capital. The breach of the Nasdaq Listing Rule 5550(b)(1) due to insufficient stockholders' equity poses a risk of delisting, which typically leads to lower liquidity and may deter institutional investors. As the company explores options to regain compliance, investors should monitor the situation closely for the submission and acceptance of the Compliance Plan, as well as the company's strategic moves to address its negative equity position.
It's crucial to understand that stockholders' equity is a measure of a company's net value and negative equity can indicate financial distress or potential insolvency. The company's ability to submit a viable Compliance Plan and return to a positive equity status will be a key determinant in its financial health and operational viability moving forward.
The market's reaction to AirNet Technology Inc.'s announcement may vary based on investor sentiment and the perceived likelihood of the company's ability to address its equity shortfall. Historical data suggests that companies facing delisting risks can experience increased volatility in their stock price. The broader implications for the market include potential reevaluation of similar companies within the sector that may also be at risk of non-compliance with listing standards.
Additionally, the situation presents an opportunity for the company to reassess its business model and financial management. The response from the management in terms of the Compliance Plan will provide insights into their strategic priorities and operational agility. This could have implications for competitive dynamics within the industry, as the company may need to seek additional funding, restructure, or consider strategic partnerships.
From a legal perspective, AirNet's receipt of the Deficiency Letter triggers a formal process outlined by Nasdaq's regulatory framework. The company's adherence to the 45-day deadline for submitting a Compliance Plan is mandatory to avoid immediate delisting. The legal team's role in crafting a Compliance Plan that aligns with regulatory requirements and addresses the financial shortfall is critical.
Understanding the legal nuances of the Nasdaq Listing Rule 5810(b) is important for stakeholders, as it mandates prompt disclosure of such notifications, ensuring transparency for investors. The legal ramifications of potential delisting include not only decreased share value but also potential shareholder lawsuits if the situation was deemed to have been mishandled by the company's management.
BEIJING, Jan. 05, 2024 (GLOBE NEWSWIRE) -- AirNet Technology Inc., formerly known as AirMedia Group Inc. (the “Company”) (Nasdaq: ANTE), today announced that it received a notification letter dated December 29, 2023 (the “Deficiency Letter”) from the Listing Qualifications Department of The Nasdaq Stock Market Inc. (the “Nasdaq”) notifying that the Company is no longer in compliance with the Nasdaq Listing Rule 5550(b)(1) for continued listing due to its failure to maintain a minimum of
The Deficiency Letter does not result in the immediate delisting of the Company’s ordinary shares represented by American depositary shares on the Nasdaq Capital Market. The Company has 45 calendar days from the date of the Deficiency Letter, or until February 12, 2024, to submit a plan (the “Compliance Plan”) to Nasdaq to regain compliance with the minimum stockholders’ equity standard. If the Compliance Plan is accepted by Nasdaq, the Company may be granted a compliance period of up to 180 calendar days from the date of the Deficiency Letter to evidence compliance.
The Company’s management is looking into various options available to regain compliance and maintain its continued listing on the Nasdaq Capital Market. The Company intends to submit the Compliance Plan as soon as practicable. This announcement is made in compliance with the Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a notification of deficiency.
Forward-Looking Statements
This announcement contains forward-looking statements within the meaning of 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,” “is expected to,” “anticipates,” “aim,” “future,” “intends,” “plans,” “believes,” “are likely to,” “estimates,” “may,” “should” and similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements are based upon management’s current expectations and current market and operating conditions, and involve inherent risks and uncertainties, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause its actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information is included in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
Company Contact
Linda Wang
Investor Relations
AirNet Technology Inc.
Tel: +86-10-8460-8678
Email: ir@ihangmei.com
FAQ
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