Mingzhu Receives Nasdaq Delisting Notice Subject to Hearing Request

Rhea-AI Summary

MingZhu Logistics Holdings (Nasdaq: YGMZ) announced on February 14, 2025, that it received a delisting notice from Nasdaq due to non-compliance with the minimum bid price requirement. The company's shares have traded below $1 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).

Unlike typical cases where companies receive a 180-day compliance period, MingZhu is ineligible for this grace period because it already implemented a reverse stock split on July 1, 2024. The company has until February 20, 2025, to appeal the delisting determination to a hearing panel, which would temporarily stay the suspension of its securities. MingZhu intends to request such hearing and is exploring options to regain compliance, including considering another reverse stock split subject to shareholder approval.

Positive

• Company still has the opportunity to appeal the delisting determination
• Securities will continue trading on Nasdaq during the appeal process

Negative

• Received delisting notice from Nasdaq
• Stock trading below $1 for 30 consecutive business days
• Previous reverse stock split in July 2024 failed to maintain compliance
• Potential additional reverse stock split may lead to further share dilution

SHENZHEN, China, Feb. 14, 2025 /PRNewswire/ -- MingZhu Logistics Holdings Limited ("MingZhu" or the "Company") (Nasdaq: YGMZ), an elite provider of logistics and transportation services to businesses, today announced that on February 13, 2025, it received a letter from the Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that the Nasdaq staff has determined to delist the Company's ordinary shares from The Nasdaq Capital Market (the "Delisting Determination"), because the bid price of the Company's listed securities has closed at less than $1 per share over the previous 30 consecutive business days, and therefore it no longer complies with the Nasdaq Listing Rule 5550(a)(2) (the "Rule"). Normally, a company would be afforded a 180-calendar day period to demonstrate compliance with the Rule. However, pursuant to the Nasdaq Listing Rule 5810(c)(3)(A)(iv), the Company is not eligible for any compliance period specified in Nasdaq Listing Rule 5810(c)(3)(A) due to the fact that the Company effected a reverse stock split on July 1, 2024, or within the prior one-year period.

The Company has until February 20, 2025 to request an appeal of the Delisting Determination to the hearing panel. The Company intends to request such hearing to appeal the Delisting Determination before that date, which will stay the suspension of its securities from the date of the request, during which time such securities will continue to be listed on The Nasdaq Capital Market.

The Company is considering all potential options available to it to regain compliance with the aforementioned rules, including seeking shareholders' approval for a reverse stock split.

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 and Xinjiang Autonomous Region, 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 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). 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. 

 

View original content:https://www.prnewswire.com/news-releases/mingzhu-receives-nasdaq-delisting-notice-subject-to-hearing-request-302377216.html

SOURCE MingZhu Logistics Holdings Limited

FAQ

Why did YGMZ receive a delisting notice from Nasdaq in February 2025?

YGMZ received a delisting notice because its stock price closed below $1 per share for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).

What is the deadline for YGMZ to appeal the Nasdaq delisting determination?

YGMZ has until February 20, 2025, to request an appeal of the delisting determination to the hearing panel.

Will YGMZ stock continue trading on Nasdaq after receiving the delisting notice?

Yes, YGMZ stock will continue trading on Nasdaq during the appeal process if the company requests a hearing before February 20, 2025.

What options is YGMZ considering to maintain Nasdaq listing?

YGMZ is considering various options, including seeking shareholders' approval for another reverse stock split to regain compliance with Nasdaq's minimum bid requirement.

Why wasn't YGMZ given the standard 180-day compliance period?

YGMZ was not eligible for the 180-day compliance period because it had already implemented a reverse stock split on July 1, 2024, within the prior one-year period.