Mingzhu Logistics Holdings Limited Regains Compliance with Nasdaq Minimum Closing Bid Price Rule

Rhea-AI Summary

Mingzhu Logistics Holdings Limited (NASDAQ: YGMZ) has successfully regained compliance with Nasdaq's minimum bid price requirement. The company received formal notification from Nasdaq on May 20, 2025, confirming that its closing bid price maintained at least $1.00 per share for twenty consecutive trading days from April 17 through May 8, 2025.

While compliance has been restored, Nasdaq has imposed a one-year Discretionary Panel Monitor to ensure proactive addressing of potential compliance issues. During this monitoring period, if any listing standard violations occur, Mingzhu will not be permitted to submit a compliance plan or receive additional time to regain compliance, resulting in an immediate delisting determination.

Positive

• Successfully regained compliance with Nasdaq's minimum bid price requirement
• Maintained closing bid price above $1.00 for twenty consecutive trading days
• Continues to maintain Nasdaq listing status

Negative

• Company placed under strict one-year monitoring period with immediate delisting risk for any compliance violations
• No grace period or compliance plans will be permitted if new violations occur during monitoring
• Demonstrates recent financial vulnerability that led to initial compliance issues

Insights

Capital Markets Expert

Mingzhu avoided immediate delisting risk by maintaining $1+ share price for 20 days, but remains under strict Nasdaq monitoring.

Mingzhu Logistics has successfully addressed an existential threat to its Nasdaq listing by regaining compliance with the minimum bid price requirement. The company's shares maintained a closing bid price of at least $1.00 for the required 20 consecutive trading days between April 17 and May 8, satisfying the Nasdaq Hearings Panel's March 31 decision.

This compliance achievement is crucial as it prevents immediate delisting, which would have severely restricted Mingzhu's access to capital markets, reduced trading liquidity, and damaged investor confidence. However, investors should note the significant ongoing compliance risk - Nasdaq has imposed a one-year Discretionary Panel Monitor period with extraordinarily strict conditions.

Under these heightened monitoring terms, if Mingzhu fails to meet any Nasdaq listing requirement during the next year, the normal remediation procedures are suspended. The company would receive no compliance plan submission opportunity, no additional time to fix issues, and no standard cure periods. Instead, Nasdaq would promptly issue a Staff Delisting Determination - essentially creating a zero-tolerance policy for any listing violations through May 2026.

This monitoring framework indicates Nasdaq's concerns about Mingzhu's long-term compliance capabilities and places the company in a precarious position despite clearing the immediate hurdle. The rigid terms create a substantial ongoing delisting risk that could materialize rapidly if any compliance issues emerge during the monitoring period.

Shenzhen, China, May 21, 2025 (GLOBE NEWSWIRE) -- Mingzhu Logistics Holdings Limited (“Mingzhu” or the “Company”) (Nasdaq: YGMZ), an elite provider of logistics and transportation services to businesses, announced today that it received a formal notification from the Nasdaq Stock Market LLC (“Nasdaq”) on May 20, 2025, that the Company has regained compliance with Listing Rule 5550(a)(2) (the “Bid Price Rule”), as required by the Nasdaq Hearings Panel’s (“Panel”) decision dated March 31, 2025.

The Nasdaq staff made this determination of compliance after the closing bid price of the Company’s Ordinary Shares has been at $1.00 per share or greater for twenty consecutive trading days from April 17 through May 8, 2025. Accordingly, the Company has regained compliance with Nasdaq Listing Rule 5550(a)(2).

The Panel also has determined to impose a Discretionary Panel Monitor under Listing Rule 5815(d)(4)(A) for a period of one year from the date of this letter, to make sure that the Company proactively addresses any future potential compliance concerns and demonstrates long-term compliance with Nasdaq’s continued listing requirements. If the Hearings Panel or the Listing Qualifications Department determines that the Company fails any listing standard during the one-year monitoring period, then, notwithstanding Rule 5810(c)(2), the Company will not be permitted to provide the Listing Qualifications Department with a plan of compliance with respect to any deficiency that arises during the one-year monitoring period, and the Listing Qualifications Department will not be permitted to grant additional time for the Company to regain compliance with respect to any deficiency, nor will the company be afforded an applicable cure or compliance period pursuant to Rule 5810(c)(3). Rather, the Listing Qualifications Department will promptly issue a Staff Delisting Determination.

About MingZhu Logistics Holdings Limited (Nasdaq: YGMZ)

Established in 2002 and headquartered in Shenzhen, China, MingZhu Logistics Holdings Limited is a 4A-rated professional trucking service provider. Based on the Company’s regional logistics terminals in Guangdong Province, MingZhu Logistics Holdings offers tailored solutions to our clients to deliver their goods through our network density and broad geographic coverage across the country by a combination of self-owned fleets tractors and trailers and subcontractors’ fleets. For more information, please visit https://ir.szygmz.com/.

Forward-Looking Statements

The statements in this press release regarding the Company’s future expectations, plans and prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding plans, goals, objectives, strategies, future events, expected performance, assumptions and any other statements of fact that have not occurred. Any statements that contain the words “may”, “will”, “want”, “should”, “believe”, “expect”, “anticipate”, “estimate”, “calculate” or similar statements that are not factual in nature are to be considered forward-looking statements. Actual results may differ materially from historical results or from those expressed in these forward-looking statements as a result of a variety of factors. These factors include, but are not limited to, the Company’s strategic objectives, the Company’s future plans, market demand and user acceptance of the Company’s products or services, technological advances, economic trends, the growth of the trucking services market in China, the Company’s reputation and brand, the impact of industry competition and bidding, relevant policies and regulations, fluctuations in China’s macroeconomic conditions, and the risks and assumptions disclosed in the Company’s reports provided to the CSRC (China Security Regulatory Commission). The potential acquisition involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including but not limited to statements about the potential benefits of the potential acquisition; the anticipated timing of closing of the potential acquisition (including failure to obtain necessary regulatory approvals) and the possibility that the potential acquisition does not close; risks related to the ability to realize the anticipated benefits of the potential acquisition, including the possibility that the expected benefits from the proposed transaction will not be realized or will not be realized within the expected time period; the risk that the businesses will not be integrated successfully; disruption from the potential acquisition making it more difficult to maintain business and operational relationships; negative effects of announcing the potential acquisition or the consummation of the potential acquisition on the market price of our common stock or operating results; costs associated with the potential acquisition; unknown liabilities; and the risk of litigation and/or regulatory actions related to the potential acquisition. For these and other related reasons, we advise investors not to place any reliance on these forward-looking statements, and we urge investors to review the Company’s relevant SEC filings for additional factors that may affect the Company’s future results of operations. The Company undertakes no obligation to publicly revise these forward-looking statements subsequent to the filing of these documents as a result of changes in particular events or circumstances.

For further information, please contact.
MingZhu Logistics Holdings Limited:
Jingwei Zhang
Email: company@szygmz.com
Phone: +86 186-5937-1270

FAQ

What did Mingzhu Logistics (YGMZ) do to regain Nasdaq compliance?

Mingzhu Logistics maintained its closing bid price at $1.00 or higher for twenty consecutive trading days from April 17 through May 8, 2025, meeting Nasdaq's minimum bid price requirement.

What happens if YGMZ violates Nasdaq listing requirements during the monitoring period?

If any listing violations occur during the one-year monitoring period, YGMZ will face immediate delisting without the opportunity to submit a compliance plan or receive additional time to correct the issue.

How long will Mingzhu Logistics (YGMZ) be under Nasdaq monitoring?

YGMZ will be under Nasdaq's Discretionary Panel Monitor for one year from May 20, 2025, to ensure ongoing compliance with listing requirements.

What are the implications of Nasdaq's monitoring period for YGMZ shareholders?

Shareholders face increased delisting risk as any listing violations during the monitoring period will result in immediate delisting, potentially affecting stock liquidity and value.