China SXT Pharmaceuticals, Inc. Received Nasdaq Notification Letter Regarding Bid Price Deficiency

Rhea-AI Summary

China SXT Pharmaceuticals (NASDAQ: SXTC) has received a notification from Nasdaq on October 3, 2024, stating that the company no longer meets the minimum bid price requirements. SXTC's ordinary shares have been below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). The company has until April 1, 2025, to regain compliance by maintaining a closing bid price of at least $1 for a minimum of 10 consecutive business days. If SXTC fails to meet this requirement, it may be eligible for an additional 180-day compliance period, provided it meets other listing standards and expresses intention to cure the deficiency, possibly through a reverse stock split.

Positive

• Company has until April 1, 2025, to regain compliance with Nasdaq listing requirements
• Possibility of additional 180-day compliance period if initial deadline is not met

Negative

• SXTC's stock price has been below $1.00 for 30 consecutive business days
• Company at risk of potential delisting from Nasdaq if compliance is not achieved
• May need to consider a reverse stock split to meet minimum bid price requirement

Jiangsu, China, , Oct. 07, 2024 (GLOBE NEWSWIRE) -- China SXT Pharmaceuticals, Inc. (“SXTC” or the “Company”), (NASDAQ: SXTC) announced today that on October 3, 2024, the Company received a notification letter from the Nasdaq Listing Qualifications Staff of The NASDAQ Stock Market LLC (“Nasdaq”) notifying the Company that the minimum bid price per share for its ordinary shares has been below $1.00 for a period of 30 consecutive business days and the Company therefore no longer meets the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2).

The notification received has no immediate effect on the listing of the Company’s ordinary shares on Nasdaq. Under the Nasdaq Listing Rules, the Company has until April 1, 2025, to regain compliance. If at any time during such 180-day period the closing bid price of the Company’s ordinary shares is at least $1 for a minimum of 10 consecutive business days, Nasdaq will provide the Company written confirmation of compliance.

If the Company does not regain compliance during such 180-day period, the Company may be eligible for an additional 180 calendar days, provided that the Company meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq except for Nasdaq Listing Rule 5550(a)(2), and provide a written notice of its intention to cure this deficiency during the second compliance period, by effecting a reverse stock split, if necessary.

About China SXT Pharmaceuticals, Inc.
Founded in 2005 and headquartered in Taizhou City, Jiangsu Province, China, China SXT Pharmaceuticals, Inc. is an innovative pharmaceutical company focusing on the research, development, manufacture, marketing and sales of traditional Chinese medicine pieces, which is a type of Traditional Chinese Medicine that has been processed to be ready for use. For more information, please visit www.sxtchina.com.

Safe Harbor Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding the closing of the proposed private placement are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; the growth of the pharmaceutical market, particularly the Traditional Chinese Medicine Pieces ("TCMPs") market, in China; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company serves and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward – looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Feng Zhou, Chief Executive Officer
Email:  fzhou@sxtchina.com

FAQ

What is the minimum bid price requirement for SXTC to maintain Nasdaq listing?

SXTC must maintain a minimum bid price of $1.00 per share to comply with Nasdaq Listing Rule 5550(a)(2).

When did SXTC receive the Nasdaq notification letter regarding bid price deficiency?

SXTC received the Nasdaq notification letter on October 3, 2024.

What is the deadline for SXTC to regain compliance with Nasdaq's minimum bid price requirement?

SXTC has until April 1, 2025, to regain compliance with Nasdaq's minimum bid price requirement.

How can SXTC regain compliance with Nasdaq's minimum bid price requirement?

SXTC can regain compliance by maintaining a closing bid price of at least $1 for a minimum of 10 consecutive business days before April 1, 2025.