Lixiang Education Received Notice of Failure to Satisfy Continued Listing Rule

Rhea-AI Summary

Lixiang Education Holding Co., (NASDAQ: LXEH), a private education service provider in China, has received a notice from Nasdaq indicating non-compliance with the Minimum Market Value of Publicly Held Shares Rule. The company failed to maintain the required $5 million minimum market value of publicly held shares from July 15 to August 28, 2024. Lixiang has been given until February 25, 2025, to regain compliance by exceeding the $5 million threshold for at least 10 consecutive business days. Failure to comply may result in delisting, though the company may consider transferring to the Nasdaq Capital Market. The notice does not immediately affect LXEH's listing or trading status on the Nasdaq Global Market.

Positive

• Company given 180 days to regain compliance with Nasdaq listing requirements
• Current listing and trading status on Nasdaq Global Market remains unaffected

Negative

• Failed to maintain minimum $5 million market value of publicly held shares
• Risk of potential delisting from Nasdaq Global Market if compliance not achieved by February 25, 2025
• Indication of declining market value and investor interest in the company's shares

LISHUI, China, Sept. 04, 2024 (GLOBE NEWSWIRE) --  Lixiang Education Holding Co., Ltd. (the “Company” or NASDAQ: LXEH), a prestigious private education service provider in China, today announced that it received a written notice (the “Notice”) from the Listing Qualifications Department of The Nasdaq Global Market on August 29, 2024 indicating that the Company was not in compliance with Listing Rule 5450(b)(1)(C)(the “Minimum Market Value of Publicly Held Shares Rule”), which requires the Company to maintain a minimum market value of publicly held shares of US$5 million for continued listing on the Nasdaq Global Market.

The Minimum Market Value of Publicly Held Shares Rule requires listed securities to maintain a minimum market value of publicly held shares of US$5 million, and Listing Rule 5810(c)(3)(D) provides that a failure to meet this requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the market value of publicly held shares of the Company from July 15, 2024 to August 28, 2024, the Company no longer meets the requirement of the Minimum Market Value of Publicly Held Shares Rule. In accordance with Listing Rule 5810(c)(3)(D), the Company has been provided 180 calendar days, or until February 25, 2025, to regain compliance with the Minimum Market Value of Publicly Held Shares Rule. To regain compliance, the Company’s market value of publicly held shares must exceed US$5 million for a minimum of ten consecutive business days during the 180-day period or prior to February 25, 2025. In the event that the Company does not regain compliance with the Minimum Market Value of Publicly Held Shares Rule by February 25, 2025, the Company will receive written notification that its securities are subject to delisting. Alternatively, the Company may consider applying to transfer the listing of its securities to the Nasdaq Capital Market, subject to applicable continued listing requirements.

The Company intends to actively monitor its market value of publicly held shares between now and February 25, 2025.

The Notice is only notification of deficiency, not of imminent delisting, and has no current effect on the listing or trading of the Company’s securities on the Nasdaq Global Market.

About Lixiang Education Holding Co., Ltd.

Founded in Lishui City, China, Lixiang Education Holding Co., Ltd. is a prestigious private education service provider in Zhejiang Province. The Company’s education philosophy is to guide the healthy development of students and to establish a solid foundation for their lifelong advancement and happiness. For more information, please visit: www.lixiangeh.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. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. 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. 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: the Company’s strategies, future business development, and financial condition and results of operations; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; the Company’s ability to maintain and enhance its brand. 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 more information, please contact:

Siyi Ye
Tel: +86-578-2267142
Email: irlxeh@lsmxjy.com

FAQ

Why did Lixiang Education (LXEH) receive a notice from Nasdaq?

Lixiang Education (LXEH) received a notice from Nasdaq because it failed to comply with the Minimum Market Value of Publicly Held Shares Rule, which requires maintaining a minimum market value of publicly held shares of $5 million.

What is the deadline for Lixiang Education (LXEH) to regain compliance with Nasdaq?

Lixiang Education (LXEH) has until February 25, 2025, to regain compliance with Nasdaq's Minimum Market Value of Publicly Held Shares Rule.

What happens if Lixiang Education (LXEH) fails to regain compliance by the deadline?

If Lixiang Education (LXEH) fails to regain compliance by February 25, 2025, it may face delisting from the Nasdaq Global Market or consider applying for transfer to the Nasdaq Capital Market.

How can Lixiang Education (LXEH) regain compliance with Nasdaq's listing requirements?

To regain compliance, Lixiang Education (LXEH) must maintain a market value of publicly held shares exceeding $5 million for a minimum of ten consecutive business days before February 25, 2025.