Garden Stage Limited - Announces Receipt of Nasdaq Notification Letter Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Garden Stage (NASDAQ: GSIW) has received a notification from Nasdaq on December 24, 2024, indicating non-compliance with the minimum bid price requirement. The company's shares have traded below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).

GSIW has until June 23, 2025 to regain compliance by maintaining a closing bid price at or above $1.00 for a minimum of 10 consecutive business days. Trading will continue uninterrupted under ticker 'GSIW' during this period. If compliance is not achieved by the deadline, the company may be eligible for additional time if it meets other Nasdaq Capital Market listing requirements and declares intent to cure the deficiency.

Positive

• Trading continues uninterrupted on Nasdaq during compliance period
• Company may be eligible for additional compliance time beyond June 2025 if other listing requirements are met

Negative

• Stock trading below $1.00 for 30 consecutive business days
• Risk of potential delisting if minimum bid price requirement isn't met by June 23, 2025
• Non-compliance with Nasdaq listing requirements

Insights

Financial Compliance Analyst

The Nasdaq notification represents a critical compliance challenge for Garden Stage with potentially serious implications. With a market cap of just $9.5 million, the company's prolonged sub-dollar share price triggers heightened delisting risks. The 180-day compliance window until June 23, 2025 provides runway to address this fundamental issue.

The company faces three main scenarios: 1) Natural price recovery above $1.00 through improved market performance, 2) Implementation of a reverse stock split to artificially boost share price, or 3) Potential delisting if compliance isn't achieved. For small-cap companies like GSIW, such notifications often precede more severe financial distress signals. The lack of immediate remediation plans in the announcement is concerning, as companies typically outline strategic responses to maintain listing status.

In simpler terms: Think of this like a warning light on a car's dashboard - while the car still runs, ignoring it could lead to bigger problems. The company needs to get its stock price back up to $1.00 within 6 months, or it risks being kicked off the Nasdaq, which would make it harder for investors to buy and sell shares.

Hong Kong, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Garden Stage Limited (NASDAQ: GSIW) (“GSIW” or the “Company”), today announced that it received a delinquency notification letter (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) on December 24, 2024 indicating that the Company is not currently in compliance with the minimum bid price requirement set forth in Nasdaq’s Listing Rules for continued listing on the Nasdaq Capital Market, as the closing bid price for the Company’s ordinary shares listed on the Nasdaq Capital Market was below $1.00 per share for 30 consecutive business days. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $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. The Notice provides that the Company has a period of 180 calendar days from the date of the Notice, or until June 23, 2025, to regain compliance with the minimum bid price requirement.

The receipt of the Notice has no immediate effect on the Company’s business operations or the listing of the Company’s ordinary shares, which will continue to trade uninterrupted on the Nasdaq under the ticker “GSIW.” Pursuant to the Notice, the Company has until June 23, 2025 to regain compliance with the minimum bid price requirement, during which time the Company’s ordinary shares will continue to trade on the Nasdaq Capital Market. If at any time before June 23, 2025, the bid price of the Company’s ordinary shares closes at or above $1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written confirmation of compliance to the Company.

In the event that the Company does not regain compliance by June 23, 2025, the Company may be eligible for additional time to regain compliance. To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, except for the minimum bid price requirement. In addition, the Company would be required to notify Nasdaq of its intent to cure the deficiency during the second compliance period.

About Garden Stage Limited

GSIW, through our Operating Subsidiaries, are a Hong Kong-based financial services provider principally engaged in the provision of (i) placing and underwriting services; (ii) securities dealing and brokerage services; (iii) asset management services; and (iv) investment advisory services. Our operation is carried out through our wholly-owned Operating Subsidiaries: a) I Win Securities Limited, which is licensed to conduct Type 1 (dealing in securities) regulated activities under the SFO in Hong Kong, and b) I Win Asset Management Limited, which is licensed to conduct Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the SFO in Hong Kong. I Win Securities Limited is the Stock Exchange Participant and holds one Stock Exchange Trading Right. I Win Securities Limited is a participant of the HKSCC.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under 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," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in verbal statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law.

For more information, please contact:

Garden Stage Limited
Chan Sze Ho
Chief Executive Officer
Email: rickychan@iwinsec.com
Tel: (852) 2688 6333

FAQ

What is the deadline for GSIW to regain Nasdaq compliance?

Garden Stage (GSIW) has until June 23, 2025, to regain compliance with Nasdaq's minimum bid price requirement.

What is the minimum share price GSIW needs to maintain for Nasdaq compliance?

GSIW needs to maintain a minimum bid price of $1.00 per share for at least 10 consecutive business days to regain compliance.

Will GSIW continue trading on Nasdaq during the compliance period?

Yes, GSIW will continue trading uninterrupted on Nasdaq under the ticker 'GSIW' during the compliance period.

What happens if GSIW doesn't meet the compliance deadline of June 23, 2025?

If GSIW doesn't meet the deadline, it may be eligible for additional time if it meets other Nasdaq Capital Market listing requirements and declares intent to cure the deficiency.