Universe Pharmaceuticals INC Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Universe Pharmaceuticals received a notification from Nasdaq on October 25, 2024, indicating non-compliance with the minimum bid price requirement. The company's stock failed to maintain the required $1.00 per share minimum bid price for 30 consecutive business days from September 13 to October 24, 2024. The company has been granted until April 23, 2025, to regain compliance by achieving a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. While this notification doesn't immediately affect the company's Nasdaq listing, failure to comply could lead to delisting. The company is considering options, including a potential reverse share split, to meet the requirement.

Positive

• None.

Negative

• Stock price fell below $1.00 minimum bid requirement
• Risk of potential delisting from Nasdaq if compliance not achieved by April 2025
• Possible reverse share split implementation which could affect share value

Insights

Financial Analyst

This is a significant development signaling financial distress for Universe Pharmaceuticals. The company's stock trading below $1.00 for 30 consecutive days triggers potential delisting concerns, which could severely impact liquidity and institutional investment access. While the 180-day compliance period provides some breathing room, the company's mention of a possible reverse split suggests organic growth prospects to naturally boost the share price. Key risks include:

• Potential forced selling by institutional investors if delisting occurs
• Reduced market visibility and trading volume
• Difficulty raising future capital

Historical data shows that companies receiving such notices often struggle to maintain compliance even after implementing reverse splits, making this a serious red flag for investors.

Ji’an, Jiangxi, China, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Universe Pharmaceuticals INC (the “Company”) (Nasdaq: UPC), a pharmaceutical producer and distributor in China, today announced that the Company received a written notification (the "Notification Letter") from the Nasdaq Stock Market LLC ("Nasdaq") on October 25, 2024, notifying the Company that it is not in compliance with the minimum bid price requirement set forth in the Nasdaq Listing Rules for continued listing on the Nasdaq.

Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of US$1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company's ordinary shares for the 30 consecutive business days from September 13, 2024 to October 24, 2024, the Company no longer meets the minimum bid price requirement.

The Notification Letter does not impact the Company's listing on the Nasdaq Capital Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided 180 calendar days, or until April 23, 2025, to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the Company's ordinary shares must have a closing bid price of at least US$1.00 for a minimum of 10 consecutive business days. In the event the Company does not regain compliance by April 23, 2025, the Company may be eligible for additional time to regain compliance or may face delisting.

The Company's business operations are not affected by the receipt of the Notification Letter. The Company intends to monitor the closing bid price of its ordinary shares and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse share split of its outstanding ordinary shares, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.

About Universe Pharmaceuticals INC

Universe Pharmaceuticals INC, headquartered in Ji’an, Jiangxi, China, is a pharmaceutical producer and distributor in China. The Company specializes in the manufacturing, marketing, sales and distribution of traditional Chinese medicine derivatives products targeting the elderly with the goal of addressing their physical conditions in the aging process and to promote their general well-being. The Company also distributes and sells biomedical drugs, medical instruments, Traditional Chinese Medicine Pieces, and dietary supplements manufactured by third-party pharmaceutical companies. Currently, the Company’s products are sold in 30 provinces of China. For more information, visit the company’s website at http://www.universe-pharmacy.com/.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the U.S. Securities and Exchange Commission.

Contact:

Ms. Lin Yang,
Chief Financial Officer of Universe Pharmaceuticals INC
lin.yang@universe-pharmacy.com

FAQ

What is the deadline for Universe Pharmaceuticals (UPC) to regain Nasdaq compliance?

Universe Pharmaceuticals has until April 23, 2025, to regain compliance with Nasdaq's minimum bid price requirement.

What is the minimum stock price Universe Pharmaceuticals (UPC) needs to maintain for Nasdaq compliance?

UPC needs to maintain a minimum bid price of $1.00 per share for at least 10 consecutive business days to regain compliance.

When did Universe Pharmaceuticals (UPC) receive the Nasdaq deficiency notice?

Universe Pharmaceuticals received the Nasdaq deficiency notification on October 25, 2024.

What actions might Universe Pharmaceuticals (UPC) take to regain Nasdaq compliance?

The company is considering implementing available options, including a potential reverse share split of its outstanding ordinary shares.