XChange TEC.INC Announces Receipt of Nasdaq Notification of Regaining Listing Compliance

Rhea-AI Summary

XChange TEC (NASDAQ: XHG) has successfully regained compliance with Nasdaq's minimum bid price requirement, avoiding potential delisting. The company received two letters from Nasdaq on August 12 and 14, 2024, confirming its adherence to the $1 per share minimum bid price rule. This follows a previous non-compliance notice issued on April 3, 2024, which granted XHG a 180-day compliance period. The company's American Depositary Shares (ADSs) maintained a closing bid price of $1.00 or higher for 28 consecutive business days from July 5 to August 13, 2024, surpassing the required 10-day minimum. As a result, XHG will continue to be listed on the Nasdaq Global Market.

Positive

• Regained compliance with Nasdaq's minimum bid price requirement
• Avoided potential delisting from Nasdaq Global Market
• Maintained closing bid price of $1.00 or higher for 28 consecutive business days

Negative

• None.

News Market Reaction

+0.95%

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+0.95% News Effect

On the day this news was published, XHG gained 0.95%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SHANGHAI, Aug. 15, 2024 /PRNewswire/ -- XChange TEC.INC (NASDAQ: XHG) (the "Company"), today announced that it received two letters, dated August 12 and 14, 2024, respectively, from The Nasdaq Stock Market ("Nasdaq") notifying the Company that it had regained compliance with the requirement to maintain a minimum bid price of $1 per share as set forth under Nasdaq Listing Rule 5450(a)(1) for continued listing on The Nasdaq Global Market (the "Bid Price Rule").

As previously announced by the Company via a press release on April 9, 2024, the Company received a notice from Nasdaq dated April 3, 2024, stating that the Company was not in compliance with the Bid Price Rule. However, Nasdaq Listing Rule 5810(c)(3)(A) provides the Company a compliance period of 180 calendar days, during which if the closing bid price of the Company's American Depositary Shares ("ADSs") is at least $1.00 per ADS for a minimum of ten consecutive business days, Nasdaq would provide a written confirmation of compliance.

On August 12, 2024, in connection with its previous request of appeal of the delisting determination by Nasdaq, the Company received a letter from the Nasdaq Office of General Counsel notifying the Company that the Company had regained compliance with the Bid Price Rule and was allowed to continue the listing of the Company's securities on Nasdaq. On August 14, 2024, the Company received another letter from Nasdaq's listing qualifications department, which also notified that the Company had regained compliance with the Bid Price Rule, because for the last 28 consecutive business days, from July 5 to August 13, 2024, the closing bid price of the Company's ADSs had been at $1.00 per ADS or greater.

About XChange TEC.INC

XChange TEC.INC, through its subsidiaries and consolidated variable interest entities, operates insurance agency and insurance technology business. The insurance agency is PRC-licensed and operates nationwide in the PRC with a wide range of insurance products underwritten by major insurance companies, including industry leading and/or state-owned property and casualty insurance companies as well as certain regional property and casualty insurance companies in China. The insurance technology business is focused on operating and developing insurance technology in the PRC, including developing SaaS platform to connect consumers and underwriting support.

Forward-Looking Statements

This press release contains forward-looking statements. 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. The Company's actual results may differ materially from those expressed in any forward-looking statements as a result of various factors and uncertainties. The reports filed by the Company with the Securities and Exchange Commission discuss these and other important factors and risks that may affect the Company's business, results of operations and financial conditions. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For investor and media inquiries, please contact:
Vivian Shen
ir@qk365.com

View original content:https://www.prnewswire.com/news-releases/xchange-tecinc-announces-receipt-of-nasdaq-notification-of-regaining-listing-compliance-302223524.html

SOURCE XChange TEC.INC

FAQ

What was XChange TEC's (XHG) Nasdaq compliance issue in 2024?

XChange TEC (XHG) faced non-compliance with Nasdaq's minimum bid price requirement of $1 per share, as notified on April 3, 2024.

How did XChange TEC (XHG) regain Nasdaq listing compliance in August 2024?

XHG regained compliance by maintaining a closing bid price of $1.00 or higher for its ADSs for 28 consecutive business days from July 5 to August 13, 2024.

What was the compliance period given to XChange TEC (XHG) by Nasdaq?

Nasdaq provided XHG with a 180-day compliance period to meet the minimum bid price requirement of $1 per share.

When did XChange TEC (XHG) receive confirmation of regaining Nasdaq compliance?

XHG received two confirmation letters from Nasdaq on August 12 and 14, 2024, stating that it had regained compliance with the minimum bid price rule.