Webuy Receives Extension to Regain Compliance with Nasdaq’s Minimum Bid Requirements

Rhea-AI Summary

Webuy Global (Nasdaq: WBUY), a Southeast Asian community e-commerce retailer, has received a 180-day extension from Nasdaq to regain compliance with the minimum bid price requirement. The company now has until January 21, 2025 to meet the U.S. $1.00 per share minimum bid price for continued listing on the Nasdaq Capital Market.

To regain compliance, Webuy's shares must close at or above U.S. $1.00 for a minimum of ten consecutive business days. CEO Vincent Xue Bin expressed confidence in the company's growth and business fundamentals, hinting at upcoming initiatives that could positively impact financial results.

Positive

• Received 180-day extension from Nasdaq to regain compliance
• CEO claims significant growth and strong business fundamentals
• Upcoming initiatives expected to positively impact financial results

Negative

• Failure to meet Nasdaq's minimum bid price requirement of U.S. $1.00
• Risk of potential delisting if compliance is not achieved by January 21, 2025

News Market Reaction

+14.74%

1 alert

+14.74% News Effect

On the day this news was published, WBUY gained 14.74%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Singapore, July 26, 2024 (GLOBE NEWSWIRE) --  Webuy Global Ltd. (Nasdaq: WBUY) (“Webuy” or the “Company”), a Southeast Asian community e-commerce retailer, today announced that, following the receipt of a written notice from the Listing Qualifications Department of the Nasdaq Stock Market, LLC (“Nasdaq”) on January 26, 2024 regarding the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Rule”) for continued listing on the Nasdaq Capital Market, it received written notification from Nasdaq, providing an additional 180 calendar days, or until January 21, 2025, to regain compliance with the minimum bid price of U.S. $1.00, as required by Nasdaq Listing Rule.

Under Nasdaq Listing Rule 5810(c)(3)(A), if at any time over this period the bid price of Webuy’s shares closes at U.S. $1.00 per share or more for a minimum of ten consecutive business days (save for Nasdaq’s discretion to require the Company to maintain a bid price of at least $1.00 per share for a period in excess more than ten consecutive business days, but generally no more than 20 consecutive business days), Nasdaq will provide written confirmation of compliance and the matter will be closed.

Vincent Xue Bin, Chief Executive Officer and Co-Founder of Webuy Global, stated, “We appreciate Nasdaq’s flexibility and support, and are committed to maintaining our listing. We continue to generate significant growth and our business fundamentals are stronger than ever. In addition, over the coming months, we look forward to unveiling a number of major initiatives underway that we expect will positively impact on our financial results. We remain laser-focused on driving value for shareholders and look forward to providing further updates.”

About Webuy Global Ltd

Webuy Global Ltd (Nasdaq: WBUY) is an innovative, technology-focused company with a goal of building the most trusted retail brand and advanced e-commerce platform in Southeast Asia, designed to leverage data in order to provide a community-driven experience for consumers. The Company's unique 'group buy' business model is set to revolutionize traditional shopping practices, by offering substantial cost savings to customers through an efficient purchasing model and community-centric approach. Akin to group purchases and bulk orders, this approach simplifies the process for customers, eliminating the need for individual bulk purchases. Furthermore, the Company’s business model streamlines the traditional supply chain by minimizing the involvement of intermediaries, thereby offering a more direct "farm-to-table" supply model. The Company’s vision is to enable the ten million families in Southeast Asia to live a healthier, higher-quality lifestyle. Additional information about the Company is available at http://webuy.global/

Forward-Looking Statements

This press release contains forward-looking statements regarding the Company’s current expectations. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company’s registration statement on Form F-1 related to the public offering (SEC File No. File No. 333-271604) and annual report on Form 20-F. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

FAQ

What is the deadline for Webuy Global (WBUY) to regain compliance with Nasdaq's minimum bid price requirement?

Webuy Global (WBUY) has until January 21, 2025, to regain compliance with Nasdaq's minimum bid price requirement of U.S. $1.00 per share.

How can Webuy Global (WBUY) regain compliance with Nasdaq's minimum bid price rule?

Webuy Global (WBUY) can regain compliance if its shares close at or above U.S. $1.00 for a minimum of ten consecutive business days before January 21, 2025.

What happens if Webuy Global (WBUY) fails to meet Nasdaq's minimum bid price requirement by the extended deadline?

If Webuy Global (WBUY) fails to meet the minimum bid price requirement by January 21, 2025, it risks potential delisting from the Nasdaq Capital Market.

Has Webuy Global (WBUY) announced any plans to address the low stock price issue?

While specific plans weren't detailed, Webuy Global's CEO mentioned upcoming initiatives that are expected to positively impact financial results, which could potentially help address the low stock price issue.