Jianzhi Education Technology Receives Nasdaq Notification of Minimum Stockholders’ Equity Non-Compliance
Rhea-AI Summary
Jianzhi Education Technology has received a notification from Nasdaq about non-compliance with the minimum stockholders' equity requirement of $10 million. The company's Form 20-F for the year ending December 31, 2023, reported a stockholders' equity of -$2.4 million. Jianzhi has until July 8, 2024, to submit a plan to regain compliance. If accepted, Nasdaq may grant an extension of up to 180 days. The notification does not affect the immediate listing of Jianzhi's shares, which continue to trade under the ticker 'JZ'. The company may appeal if the plan is not accepted or apply to transfer its shares to the Nasdaq Capital Market.
Positive
- Jianzhi has a 45-day period to submit a compliance plan to Nasdaq.
- Nasdaq may grant an extension of up to 180 days if the plan is accepted.
- The company's shares will continue to trade under the ticker 'JZ' during the grace period.
Negative
- The company reported a stockholders’ equity of -$2.4 million for the year ending December 31, 2023.
- Non-compliance with Nasdaq's requirement of $10 million in stockholders' equity.
- Uncertainty whether Nasdaq will accept the compliance plan.
- Potential delisting risk if the compliance plan is not accepted.
- Possible need to transfer shares to the Nasdaq Capital Market.
News Market Reaction
On the day this news was published, JZ declined 1.14%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
BEIJING, May 28, 2024 (GLOBE NEWSWIRE) -- Jianzhi Education Technology Group Company Limited (the “Company” or “Jianzhi”) (NASDAQ: JZ), a leading provider of digital educational content in China, today announced it has received a letter from the Nasdaq Stock Market LLC (“Nasdaq”) Listing Qualifications Department on May 22, 2024, notifying the Company no longer complies with the Nasdaq Listing Rule 5450(b)(1)(A) that requires companies listed on the Nasdaq Global Select Market to maintain a minimum of
The notification letter has no immediate effect on the Company’s listing on the Nasdaq Global Select Market, and during the grace period, the Company’s ordinary shares will continue to trade on Nasdaq under the symbol “JZ.” If Nasdaq does not accept the Company’s compliance plan, the Company may appeal the decision to a Hearings Panel. Alternatively, the Company may consider applying to transfer its ordinary shares to The Nasdaq Capital Market. However, there can be no assurance that Nasdaq will accept the compliance plan or that the Company will be able to regain compliance with the Rules, or that Nasdaq would approve the Company’s application to list on The Nasdaq Capital Market. The Company intends to submit the compliance plan as soon as practicable.
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 embeds 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.
For investor and media inquiries, please contact:
Janice Wang
Wealth Financial Services LLC
Phone: +86 13811768559
+1 628 283 9214
Email: services@wealthfsllc.com
FAQ
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