Jianzhi Education Has Regained Compliance with Nasdaq's Minimum Bid Price Requirement

Rhea-AI Summary

Jianzhi Education (NASDAQ: JZ) has successfully regained compliance with Nasdaq's minimum bid price requirement. The company received confirmation from Nasdaq on July 14, 2025, following a previous deficiency notice from January 15, 2025, which required the stock to maintain a minimum bid price of $1.00.

To address this requirement, Jianzhi implemented an ADS Ratio Change on June 16, 2025, adjusting from 1 ADS representing 6 ordinary shares to 1 ADS representing 60 ordinary shares. The company maintained a closing bid price above $1.00 for eighteen consecutive business days from June 16 through July 11, 2025, successfully resolving the compliance issue.

Positive

• Successfully regained Nasdaq listing compliance, avoiding potential delisting
• Maintained bid price above $1.00 for 18 consecutive business days
• Successfully implemented ADS ratio change to address price requirements

Negative

• Required significant share consolidation (1:10 ratio change) to meet minimum bid requirement
• Previous six-month period of trading below $1.00 indicates underlying price weakness

Insights

Financial Regulatory Analyst

Jianzhi Education averted Nasdaq delisting through a 1:10 reverse split, maintaining its listing status despite underlying price weakness.

Jianzhi Education has successfully regained compliance with Nasdaq's minimum bid price requirement after implementing what effectively amounts to a 1:10 reverse split of its American Depositary Shares (ADSs). The company had been under pressure since January 2025 when Nasdaq flagged its sub-$1 trading price, giving Jianzhi a 180-day compliance window ending July 14, 2025.

The company's solution was a significant ADS ratio change on June 16, modifying each ADS to represent 60 ordinary shares instead of the previous 6 shares - effectively a 10:1 consolidation. This mathematical adjustment boosted the share price above the $1 threshold without changing the company's fundamental value or market capitalization.

While this maneuver successfully preserved Jianzhi's Nasdaq listing status, investors should recognize this as primarily a technical compliance action rather than a reflection of business improvement. Companies typically resort to such ratio changes or reverse splits when their shares have experienced prolonged price deterioration. The underlying factors that initially drove the share price below $1 likely remain unchanged.

The maintenance of Nasdaq listing does provide significant benefits by ensuring continued access to U.S. capital markets, maintaining trading liquidity, and avoiding the reputation damage and reduced investor interest that typically follows a downgrade to over-the-counter markets. However, history shows companies implementing reverse splits to maintain listings often continue facing fundamental business challenges that initially pressured their share prices.

BEIJING, July 15, 2025 /PRNewswire/ -- Jianzhi Education Technology Group Company Limited (the "Company" or "Jianzhi") (NASDAQ: JZ), a leading provider of digital educational content in China, today announced that the Company has received written a notification from the staff of the Listing Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") dated July 14, 2025, informing the Company that it has regained compliance with the Nasdaq Listing Rule 5550(a)(2) ("Minimum Bid Price Requirement") and the matter is closed.

As previously announced, the Company received a notification letter from the Nasdaq dated January 15, 2025, indicating its that for the last 30 consecutive business days, the closing bid price for the Company's American depositary shares (the "ADSs") was below the minimum bid price of US$1.00 ("Minimum Bid Price deficiency") under Minimum Bid Price Requirement. Pursuant to the Nasdaq Listing Rules 5810(c)(3)(A), the Company was provided with 180 calendar days, or until July 14, 2025, to regain compliance.

To comply with the Minimum Bid Price Requirement, the closing bid price of the Company's ADSs must be US$1.00 per share or higher for a minimum of ten consecutive business days at any time prior to July 14, 2025. Therefore, in order to cure the Minimum Bid Price deficiency, the Company has effectuated the ADS Raito Change on June 16, 2025 (U.S. Eastern Time), of which the ratio of its American Depositary Shares ("ADSs") from one (1) ADS representing six (6) ordinary shares to one (1) ADS representing sixty (60) ordinary shares (the "ADS Ratio Change")

According to the Compliance Notice, the Company evidenced a closing bid price of its ADSs at or greater than US$1.00 per share for eighteen consecutive business days from June 16 through July 11, 2025. Thus, the Company has regained compliance with the Minimum Bid Price Requirement, and the matter is closed.

About Jianzhi Education Technology Group Company Limited

Headquartered in Beijing and established in 2011, Jianzhi is a leading provider of digital educational content in China and has been committed to developing educational content to fulfill the massive demand for high-quality, professional development training resources in China. Jianzhi started operations by providing educational content products and IT services to higher education institutions. Jianzhi also provides products to individual customers. Leveraging its strong capabilities in developing proprietary professional development training content and success in consolidating educational content resources within the industry, Jianzhi has successfully built up a comprehensive, multi-dimensional digital educational content database which offers a wide range of professional development products. Jianzhi embed proprietary digital education content into the self-developed online learning platforms, which are provided to a wide range of customers through its omni-channel sales system. Jianzhi is also fully committed to the digitalization and informatization of the education sector in China. For more information, please visit: www.jianzhi-jiaoyu.com. 

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to 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," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

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SOURCE Jianzhi Education Technology Group Company Limited

FAQ

What was the minimum bid price requirement that Jianzhi Education (NASDAQ: JZ) needed to meet?

Jianzhi Education needed to maintain a closing bid price of $1.00 or higher for a minimum of ten consecutive business days before July 14, 2025.

How did Jianzhi Education (JZ) resolve its Nasdaq compliance issue?

Jianzhi Education implemented an ADS Ratio Change on June 16, 2025, adjusting from 1 ADS representing 6 ordinary shares to 1 ADS representing 60 ordinary shares, which helped maintain the required minimum bid price.

When did Jianzhi Education (NASDAQ: JZ) receive the initial deficiency notice?

Jianzhi Education received the initial deficiency notice from Nasdaq on January 15, 2025, giving them 180 calendar days to regain compliance.

How long did Jianzhi Education (JZ) maintain the required minimum bid price to regain compliance?

Jianzhi Education maintained a closing bid price above $1.00 for eighteen consecutive business days from June 16 through July 11, 2025.