China Liberal Education Holdings Limited Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

China Liberal Education Holdings (Nasdaq: CLEU) has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. The company's ordinary shares failed to maintain a minimum bid price of $1.00 for 32 consecutive business days from July 8 to August 20, 2024. CLEU has been given until February 17, 2025, to regain compliance by achieving a closing bid price of at least $1.00 for a minimum of 10 consecutive business days.

If the company fails to meet this requirement, it may face potential delisting from the Nasdaq Capital Market. China Liberal is considering options to regain compliance, including the possibility of a reverse share split. The company assures that its business operations remain unaffected by this notification.

Positive

• None.

Negative

• CLEU stock price has fallen below $1.00 for an extended period
• Risk of potential delisting from Nasdaq if compliance is not regained
• Possible implementation of a reverse share split, which could be viewed negatively by investors

Insights

Financial Analyst

The Nasdaq notification regarding China Liberal Education Holdings' minimum bid price deficiency is a significant red flag for investors. This situation often indicates underlying financial or operational issues. The company's stock trading below $1 for an extended period suggests weak market confidence.

While the 180-day compliance period provides some breathing room, the company's options are A reverse stock split is a common but often temporary solution that doesn't address fundamental problems. Investors should closely monitor the company's financial performance and any strategic initiatives to improve its market position. The risk of potential delisting if compliance isn't achieved could lead to reduced liquidity and further stock price pressure.

Market Research Analyst

This notification highlights broader challenges in the Chinese education sector. Recent regulatory crackdowns and economic uncertainties have impacted investor sentiment towards Chinese education stocks. China Liberal's struggle to maintain the minimum bid price may reflect these industry-wide pressures.

Investors should consider the company's competitive position in the smart campus solutions market and its ability to adapt to changing regulations. The 180-day compliance window coincides with the start of a new academic year in China, potentially offering opportunities for the company to demonstrate value and regain market confidence. However, without significant operational improvements or positive catalysts, sustaining compliance may prove challenging in the current market environment.

BEIJING, Aug. 23, 2024 /PRNewswire/ -- China Liberal Education Holdings Limited (Nasdaq: CLEU) ("China Liberal", the "Company", "we", "our", or "us"), a China-based company that provides smart campus solutions and other educational services, today announced that the Company received a written notification (the "Notification Letter") from the Nasdaq Stock Market LLC ("Nasdaq") on August 21, 2024, notifying the Company that it is not in compliance with the minimum bid price requirement set forth in the Nasdaq Listing Rules for continued listing on the Nasdaq.

Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of US$1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company's ordinary shares for the 32 consecutive business days from July 8, 2024 to August 20, 2024, the Company no longer meets the minimum bid price requirement.

The Notification Letter does not impact the Company's listing on the Nasdaq Capital Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided 180 calendar days, or until February 17, 2025, to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the Company's ordinary shares must have a closing bid price of at least US$1.00 for a minimum of 10 consecutive business days. In the event the Company does not regain compliance by February 17, 2025, the Company may be eligible for additional time to regain compliance or may face delisting.

The Company's business operations are not affected by the receipt of the Notification Letter. The Company intends to monitor the closing bid price of its ordinary shares and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse share split of its outstanding ordinary shares, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.

About China Liberal Education Holdings Limited

China Liberal is an educational services provider headquartered in Beijing, China. China Liberal provides a wide range of services, including technological consulting for Chinese universities to improve their campus information and data management systems, designed to enhance the teaching, operating, and management environment of the universities, thus establishing a "smart campus." Additionally, China Liberal offers tailored job readiness training for graduating students. For more information, please visit the Company's website at http://ir.chinaliberal.com/.

Forward-Looking Statements

This document contains forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's expectations and projections about future events, which the Company derives from the information currently available to the Company. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those using terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. When evaluating these forward-looking statements, you should consider various factors, including our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as required by law. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can provide no assurance that these expectations will prove to be accurate, and it cautions investors that actual results may differ materially from the anticipated results. Investors are encouraged to review the risk factors that may affect future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission.

Investor Relations Contact

China Liberal Education Holdings Limited
Email: ir@chinaliberal.com

Ascent Investor Relations LLC
Tina Xiao
President
Phone: +1 646-932-7242
Email: investors@ascent-ir.com

 

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SOURCE China Liberal Education Holdings Limited

FAQ

Why did China Liberal Education Holdings (CLEU) receive a Nasdaq notification?

CLEU received a Nasdaq notification because its stock price fell below the minimum bid price requirement of $1.00 per share for 32 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).

What is the deadline for China Liberal Education (CLEU) to regain Nasdaq compliance?

China Liberal Education (CLEU) has until February 17, 2025, to regain compliance with Nasdaq's minimum bid price requirement.

How can China Liberal Education (CLEU) regain compliance with Nasdaq listing rules?

CLEU can regain compliance if its ordinary shares maintain a closing bid price of at least $1.00 for a minimum of 10 consecutive business days before February 17, 2025.

What options is China Liberal Education (CLEU) considering to address the Nasdaq notification?

CLEU is considering options including implementing a reverse share split of its outstanding ordinary shares to regain compliance with the minimum bid price requirement.