X3 Holdings Receives Extension to Regain Compliance with the Nasdaq's Minimum Bid Price Requirement

Rhea-AI Summary

X3 Holdings Co., (Nasdaq: XTKG), a global digital solutions and technology services provider, has received a 180-day extension from Nasdaq to regain compliance with the minimum $1.00 bid price requirement for continued listing on the Nasdaq Capital Market. The new deadline is April 7, 2025. To comply, XTKG's closing bid price must be at least $1.00 for a minimum of 10 consecutive business days before the deadline.

The company plans to monitor its closing bid price and effectuate a reverse stock split, subject to shareholder approval at the annual general meeting on November 4, 2024. XTKG expects these actions will help address the short-term adverse effects on its trading price and cure the deficiency. The extension does not immediately impact XTKG's listing, trading operations, or ordinary shares, which continue to trade on Nasdaq under the ticker 'XTKG'.

Positive

• Received 180-day extension to regain compliance with Nasdaq's minimum bid price requirement
• Company has until April 7, 2025 to meet the $1.00 minimum bid price
• Plans to effectuate a reverse stock split to address the issue
• Continued uninterrupted trading on Nasdaq under ticker 'XTKG'

Negative

• Failure to meet Nasdaq's minimum $1.00 bid price requirement
• Risk of potential delisting if compliance is not achieved by the new deadline
• Necessity for a reverse stock split, which may be viewed negatively by some investors

Insights

Financial Analyst

X3 Holdings' receipt of a 180-day extension from Nasdaq to regain compliance with the $1.00 minimum bid price requirement is a critical development for the company's listing status. This extension, until April 7, 2025, provides XTKG with important breathing room to address its share price issues.

The company's plan to implement a reverse stock split is a common strategy in such situations. While this can artificially boost the share price to meet Nasdaq requirements, it's important to note that reverse splits don't fundamentally change a company's value and can sometimes be viewed negatively by the market.

For investors, this news highlights significant risks:

• Potential delisting if compliance isn't achieved, which could severely impact liquidity and valuation
• Dilution risk from the reverse split
• Underlying business concerns that led to the low share price

The extension provides temporary relief, but XTKG needs to demonstrate fundamental business improvements to sustain compliance long-term.

Market Research Analyst

The extension granted to X3 Holdings reflects broader trends in the small-cap tech sector, where many companies are struggling with low share prices amid challenging market conditions. This situation is not unique to XTKG, but it does raise concerns about the company's market position and investor confidence.

Key points for investors to consider:

• The micro-cap status of XTKG (market cap of $51,003,960) makes it particularly vulnerable to volatility and liquidity issues
• The planned reverse split, while potentially necessary, often signals weakness and can lead to further price declines post-split
• The company's ability to regain compliance will likely depend on both technical factors (the reverse split) and fundamental improvements in its business performance

Investors should closely monitor XTKG's financial performance and any strategic initiatives announced in the coming months, as these will be important in determining the company's ability to maintain its Nasdaq listing and attract investor interest.

SINGAPORE, Oct. 11, 2024 /PRNewswire/ -- X3 Holdings Co., Ltd. (Nasdaq: XTKG) (the "Company" or "XTKG"), a global provider of digital solutions and technology services spanning diverse industries, today announced that it has received an extension of 180 calendar days from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") to regain compliance with the Nasdaq's minimum $1.00 bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq Capital Market (the "Bid Price Requirement"). As a result of the extension, the Company has until April 7, 2025, to regain compliance with the Bid Price Requirement. To regain compliance, the closing bid price of the Company's ordinary shares must be at least US$1.00 for a minimum of 10 consecutive business days prior to April 7, 2025. Nasdaq would then provide a written confirmation of compliance and the matter will be closed.

To address this issue, the Company intends to continuously monitor its closing bid price and to effectuate a reverse stock split, subject to the shareholders' approval at the annual general meeting, which will be convened on November 4, 2024. Upon the approval and completion of the reverse stock spilt, the Company expects that it will countervail the short-term adverse effects on its trading price and cure the deficiency in due time as well as regain compliance with the Bid Price Requirement.

The receipt of the extension period has no immediate effect on the listing or trading of the Company's business operations or the listing of the Company's ordinary shares, which will continue to trade uninterrupted on the Nasdaq under the ticker "XTKG".

About X3 Holdings

X3 Holdings Co., Ltd. (Nasdaq: XTKG) is a global provider of digital solutions and technology services spanning diverse industries. The Company is operating across diversified business segments in digital technologies, cryptomining operations, renewable energy and agriculture technologies. X3 Holdings is headquartered in Singapore with subsidiaries and operations globally. For additional information, please visit www.x3holdings.com. 

Safe Harbor Statement

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. These statements include, among others, statements regarding the Company's plans to regain compliance with the minimum bid price requirement. 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 more information, please contact:

Corporate Investor Relations
Email: ir@x3holdings.com
Website: www.x3holdings.com 

 

View original content:https://www.prnewswire.com/news-releases/x3-holdings-receives-extension-to-regain-compliance-with-the-nasdaqs-minimum-bid-price-requirement-302272657.html

SOURCE X3 Holdings Co., Ltd.

FAQ

What is the new deadline for X3 Holdings (XTKG) to regain compliance with Nasdaq's minimum bid price requirement?

X3 Holdings (XTKG) has until April 7, 2025, to regain compliance with Nasdaq's minimum $1.00 bid price requirement.

How can X3 Holdings (XTKG) regain compliance with Nasdaq's bid price requirement?

X3 Holdings (XTKG) can regain compliance if its closing bid price is at least $1.00 for a minimum of 10 consecutive business days prior to April 7, 2025.

What action is X3 Holdings (XTKG) planning to take to address the minimum bid price issue?

X3 Holdings (XTKG) plans to effectuate a reverse stock split, subject to shareholder approval at the annual general meeting on November 4, 2024.

Does the Nasdaq extension affect X3 Holdings' (XTKG) current trading status?

No, the extension has no immediate effect on X3 Holdings' (XTKG) listing or trading operations. The company's ordinary shares continue to trade uninterrupted on Nasdaq under the ticker 'XTKG'.