Pop Culture Group Co., Ltd Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Pop Culture Group (Nasdaq: CPOP) has received a notification from Nasdaq on March 17, 2025, indicating non-compliance with the minimum bid price requirement. The company's stock failed to maintain the required $1.00 per share minimum bid price for 31 consecutive business days from January 30 to March 14, 2025.

The company has been granted a 180-day compliance period until September 15, 2025, during which it must achieve a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. If unsuccessful, CPOP may face potential delisting. The company is considering various options, including a possible reverse share split, to regain compliance.

Positive

• Company granted 180-day grace period to resolve compliance issues
• Current business operations remain unaffected by the notification

Negative

• Stock price consistently trading below $1.00, triggering Nasdaq compliance issues
• Risk of potential delisting from Nasdaq if compliance is not achieved
• Possible reverse stock split may be needed, which could impact share liquidity

XIAMEN, China, March 21, 2025 /PRNewswire/ -- Pop Culture Group Co., Ltd ("Pop Culture" or the "Company") (Nasdaq: CPOP), a hip-hop culture company headquartered in China, today announced that the Company received a notification letter (the "Notification Letter") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq"), dated March 17, 2025, notifying the Company that it is not in compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. This press release is issued pursuant to Nasdaq Listing Rule 5810(b), which requires prompt disclosure upon the receipt of a deficiency notification.

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 Class A ordinary shares for the 31 consecutive business days from January 30, 2025 to March 14, 2025, 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 September 15, 2025, to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the Company's Class A 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 September 15, 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 Class A ordinary shares and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse share split of its outstanding Class A ordinary shares, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.

About Pop Culture Group Co., Ltd

Pop Culture Group Co., Ltd is a hip-hop culture company headquartered in Xiamen, China. The Company aims to promote hip-hop culture and its values while fostering cultural exchanges between the United States and China. With the values of hip-hop culture at its core and the younger generation as its primary target audience, the Company hosts entertainment events, operates hip-hop-related online programs, and provides event planning and execution services and brand promotion services to corporate clients. In recent years, the Company has focused on developing and hosting its own hip-hop events. For more information, visit the Company's website at http://ir.cpop.cn/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

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SOURCE Pop Culture Group Co., Ltd

FAQ

What is the deadline for Pop Culture Group (CPOP) to regain Nasdaq compliance?

Pop Culture Group has until September 15, 2025 to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days.

Why did Pop Culture Group (CPOP) receive a Nasdaq deficiency notice?

CPOP received the notice because its stock price remained below $1.00 for 31 consecutive business days from January 30 to March 14, 2025, violating Nasdaq's minimum bid requirement.

What happens if CPOP fails to meet Nasdaq's minimum bid requirement by the deadline?

If CPOP fails to comply by September 15, 2025, it may either receive additional time to regain compliance or face delisting from the Nasdaq Capital Market.

What solutions is Pop Culture Group considering to address the Nasdaq compliance issue?

The company is considering implementing available options, including a potential reverse share split of its outstanding Class A ordinary shares.