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LightInTheBox Receives Non-compliance Letter from NYSE Regarding Market Capitalization

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LightInTheBox (NYSE: LITB), a global online retailer specializing in proprietary apparel brands, has received a non-compliance notice from the NYSE on December 26, 2024. The notice indicates that LITB's average total market capitalization fell below $50 million over a 30 trading-day period, with stockholders' equity also below $50 million.

The company has 90 calendar days to submit a business plan demonstrating compliance within 18 months. If accepted, LITB's ADSs will continue trading on NYSE during this period, subject to semi-annual reviews. If rejected, delisting proceedings will begin. LITB notified NYSE on January 3, 2025, of its intention to remedy the deficiency.

The notice does not immediately impact LITB's listing status, and the company maintains compliance with all other NYSE listing standards. Regular business operations and SEC reporting requirements remain unaffected.

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Positive

  • Company remains compliant with all other NYSE listing standards
  • Business operations and SEC reporting requirements unaffected
  • 90-day window to submit compliance plan

Negative

  • Market capitalization below $50 million threshold
  • Stockholders' equity below $50 million requirement
  • Risk of potential NYSE delisting if business plan not accepted
  • 18-month compliance period required if plan accepted

News Market Reaction – LITB

+11.61%
+11.61% Session move

In the trading session that priced this news, LITB gained 11.61%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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SINGAPORE, Jan. 23, 2025 /PRNewswire/ -- LightInTheBox Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the "Company"), a global online retailer focusing on proprietary apparel brands and design-driven collections tailored to evolving consumer preferences, today announced that it has received a letter from the New York Stock Exchange (the "NYSE") dated December 26, 2024 (the "Notice"), notifying that the Company is "below criteria" due to its average total market capitalization being less than $50 million over a 30 trading-day period and its stockholders' equity being less than $50 million pursuant to Section 802.01B of the NYSE Listed Company Manual.

The Company intends to take steps to remedy the deficiency in a timely manner. The Company notified the NYSE on January 3, 2025 of its intention to cure such deficiency. In accordance with NYSE listing requirements, the Company has 90 calendar days from the receipt of the Notice to respond with a business plan that demonstrates compliance with this continued listing standard within 18 months of receipt of the Notice. The NYSE will review the Company's business plan and make a determination as to whether the Company has made a reasonable demonstration of its ability to come into conformity with Section 802.01B within 18 months. If the NYSE accepts the business plan, the Company's ADSs will continue to be listed and traded on the NYSE during the 18-month period, subject semi-annual review by the NYSE of the Company's compliance with such business plan. If the Company's business plan is not accepted, the NYSE will initiate delisting proceedings. The Company is currently evaluating its available options and developing a plan to regain compliance with Section 802.01B.

The Notice has no immediate impact on the listing of the Company's ADSs, which will continue to be listed and traded on the NYSE, subject to compliance with other continued listing requirements of the NYSE. The Company is currently in compliance with all other NYSE continued listing standards. The NYSE notification does not affect the Company's business operations or its SEC reporting requirements.

About LightInTheBox Holding Co., Ltd.

LightInTheBox is a global online retail company, providing a diverse range of affordable lifestyle products directly to consumers worldwide since 2007. In 2024, the Company shifted its focus to apparel design and launched its first proprietary brand, Ador.com, to meet the growing global demand for accessible higher-end fashion. Ador.com specializes in designer-quality clothing for women aged 35-55 at competitive prices and operates design studios and sample shops in both the U.S. and China, including a boutique and design studio in Campbell, California. Additionally, LightInTheBox offers a comprehensive suite of services to e-commerce companies, including advertising, supply chain management, payment processing, order fulfillment, and shipping and delivery solutions.

For more information, please visit https://ir.ador.com

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties. 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," "potential," "continue," "ongoing," "targets" and similar statements. Among other things, statements that are not historical facts, including statements about LightInTheBox's beliefs and expectations, the business outlook and quotations from management in this announcement, as well as LightInTheBox's strategic and operational plans, are or contain forward-looking statements.

LightInTheBox may also make written or oral forward-looking statements in its periodic reports to the SEC, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. 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, including but not limited to the following: LightInTheBox's goals and strategies; LightInTheBox's future business development, results of operations and financial condition; the expected growth of the global online retail market; LightInTheBox's ability to attract customers and further enhance customer experience and product offerings; LightInTheBox's ability to strengthen its supply chain efficiency and optimize its logistics network; LightInTheBox's expectations regarding demand for and market acceptance of its products; competition; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in LightInTheBox's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and LightInTheBox does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact

Investor Relations
LightInTheBox Holding Co., Ltd.
Email: ir@ador.com 

Jenny Cai
Piacente Financial Communications
Email: ador@tpg-ir.com 

Brandi Piacente
Piacente Financial Communications
Tel: +1-212-481-2050
Email: ador@tpg-ir.com 

Cision View original content:https://www.prnewswire.com/news-releases/lightinthebox-receives-non-compliance-letter-from-nyse-regarding-market-capitalization-302358446.html

SOURCE LightInTheBox Holding Co., Ltd.

FAQ

What NYSE requirements did LightInTheBox (LITB) fail to meet in December 2024?

LITB failed to maintain both a $50 million average market capitalization over 30 trading days and $50 million in stockholders' equity, violating Section 802.01B of NYSE Listed Company Manual.

What is the deadline for LITB to submit a compliance plan to NYSE?

LITB has 90 calendar days from December 26, 2024, to submit a business plan demonstrating how it will achieve compliance within 18 months.

Will LITB be immediately delisted from NYSE due to the non-compliance notice?

No, LITB will continue trading on NYSE while developing its compliance plan. Delisting would only occur if the NYSE rejects the company's business plan.

How long does LITB have to regain compliance with NYSE requirements?

If NYSE accepts LITB's business plan, the company will have 18 months to regain compliance, subject to semi-annual reviews.

Does the NYSE non-compliance notice affect LITB's business operations?

No, the notice does not affect LITB's business operations or SEC reporting requirements, and the company remains compliant with all other NYSE listing standards.