CLPS Incorporation Receives Nasdaq Notification Regarding Minimum Bid Price Requirements

CLPS has received a notice from Nasdaq dated June 10, 2024, regarding its non-compliance with the minimum bid price requirement, as its common shares closed below $1.00 for 30 consecutive trading days.

Rhea-AI Summary

CLPS has received a notice from Nasdaq dated June 10, 2024, regarding its non-compliance with the minimum bid price requirement, as its common shares closed below $1.00 for 30 consecutive trading days.

The company has until December 9, 2024, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days. If this is achieved, Nasdaq will confirm compliance in writing. Failing this, CLPS may seek an additional 180-day extension by moving to the Nasdaq Capital Market and possibly implementing a reverse stock split.

This notification does not affect the listing or trading of CLPS shares, and the company is taking steps to address the issue.

Positive

• Nasdaq notification does not affect the current listing or trading of CLPS shares.
• CLPS has 180 days to regain compliance, providing ample time for corrective measures.
• Potential eligibility for an additional 180-day compliance period if necessary.
• Company is committed to taking all reasonable measures to regain compliance.

Negative

• CLPS's shares have closed below $1.00 for 30 consecutive trading days.
• Failure to regain compliance may result in delisting from the Nasdaq Global Market.
• Possible need for a reverse stock split, which could dilute shareholder value.

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HONG KONG, June 14, 2024 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS) today announced that it received a written notice from The Nasdaq Stock Market LLC ("Nasdaq") dated June 10, 2024, indicating that the Company's closing bid price for its common shares fell below $1.00 per share for 30 consecutive trading days, which is not in compliance with Nasdaq Listing Rule 5450(a)(1). The Nasdaq notification does not affect CLPS's current listing or trading of the Company's securities on the Nasdaq Global Market.

Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the Company has been granted a 180-calendar day compliance period, until December 9, 2024, to regain compliance with the minimum bid price requirement. To regain compliance, CLPS's common shares must have a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days. If the Company achieves this within the compliance period, Nasdaq will provide written confirmation of compliance and the matter will be closed.

In the event that the Company does not regain compliance by December 9, 2024, it may be eligible for an additional 180-day compliance period by transferring to the Nasdaq Capital Market from the Nasdaq Global Market, provided it meets the necessary listing requirements, and notifying Nasdaq of its intent to cure the deficiency by effecting a reverse stock split if necessary.

The Nasdaq notification letter will have no effect on the Company's business operations, and CLPS is committed to taking all reasonable measures to regain compliance with Nasdaq's minimum bid price requirement.

About CLPS Incorporation

Headquartered in Hong Kong, CLPS Incorporation is a global leading information technology ("IT") consulting and solutions service provider focused on delivering services primarily to global institutions on the banking, wealth management, e-commerce, and automotive sectors. The Company serves as an IT service provider to a growing network of clients in the global financial service industry, including large financial institutions in the U.S., Europe, Australia, Asia, and their PRC-based IT centers. The Company maintains 20 delivery and/or research & development centers to serve different customers in various geographic locations. Mainland China centers are located in Shanghai, Beijing, Dalian, Tianjin, Xi'an, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Hainan. The remaining 10 global centers are located in Hong Kong SAR, USA, Japan, Singapore, Australia, Malaysia, India, Philippines, Vietnam, and Canada. For further information regarding the Company, please visit: https://ir.clpsglobal.com/, or follow CLPS on Facebook, Instagram, LinkedIn, X (formerly Twitter), and YouTube.

Forward-Looking Statements

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 the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance. Known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, may cause the actual results and performance of the Company to be materially different from such forward-looking statements. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's expectations of the Company's future growth, performance and results of operations, the Company's ability to capitalize on various commercial, M&A, technology and other related opportunities and initiatives, as well as the risks and uncertainties described in the Company's most recently filed 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:

CLPS Incorporation
Rhon Galicha
Investor Relations Office 
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com 

View original content:https://www.prnewswire.com/news-releases/clps-incorporation-receives-nasdaq-notification-regarding-minimum-bid-price-requirements-302172960.html

SOURCE CLPS

FAQ

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What did Nasdaq notify CLPS about on June 10, 2024?

Nasdaq notified CLPS that its common shares had closed below $1.00 for 30 consecutive trading days, violating Nasdaq Listing Rule 5450(a)(1).

What is the deadline for CLPS to regain compliance with Nasdaq's minimum bid price requirement?

CLPS has until December 9, 2024, to regain compliance with the minimum bid price requirement.

What happens if CLPS does not regain compliance by December 9, 2024?

If CLPS does not regain compliance by December 9, 2024, it may be eligible for an additional 180-day compliance period by transferring to the Nasdaq Capital Market and possibly effecting a reverse stock split.

Will the Nasdaq notification affect the trading of CLPS shares?

No, the Nasdaq notification does not affect the current listing or trading of CLPS shares.

What measures is CLPS taking to address the Nasdaq notification?

CLPS is committed to taking all reasonable measures to regain compliance with Nasdaq's minimum bid price requirement.