Connexa Regains Full Nasdaq Compliance

Rhea-AI Summary

Connexa Sports Technologies Inc. (Nasdaq: YYAI) has regained full Nasdaq compliance following a reverse stock split on June 27, 2024, and subsequent 10-day trading period above $1. As a result, Nasdaq has canceled the scheduled July 24, 2024 Hearing Panel and withdrawn the delisting determination. This development allows Connexa to proceed with its planned change in control, which will see Yuanyu Enterprise Management (YYEM) becoming a subsidiary and Slinger Bag transitioning to a private company.

CEO Mike Ballardie stated that the YYEM transaction is expected to move forward, subject to Nasdaq's listing approval of the incoming YYEM entity. This compliance resolution marks a significant milestone for Connexa, ensuring its continued presence on the Nasdaq exchange and paving the way for its strategic restructuring plans.

Positive

• Regained full Nasdaq compliance, avoiding potential delisting
• Successful reverse stock split maintaining share price above $1 for 10 consecutive days
• Cancellation of Nasdaq Hearing Panel and withdrawal of delisting determination
• Ability to proceed with planned change in control and YYEM transaction

Negative

• Recent need for reverse stock split indicates previous share price weakness
• Pending change in control and privatization of Slinger Bag may impact current shareholders

• Connexa Receives Nasdaq Confirmation Bid Price Hearing Panel Cancelation, and Delisting Determination Withdrawn.
  
  • Following June 27, 2024 Reverse Split and subsequent 10 days’ trading over $1, Connexa Bid Price Compliance is Regained

Windsor Mills, MD, July 22, 2024 (GLOBE NEWSWIRE) -- Connexa Sports Technologies Inc. (Nasdaq: YYAI), the owner of Slinger Bag and Gameface AI, announces receipt of Nasdaq confirmation that the Hearing Panel, convened for July 24, 2024, to review Connexa’s bid price compliance has been canceled and the delisting determination withdrawn.

Following the June 27, 2024 reverse split of its common stock (the “Reverse Split”) and subsequent 10-day bid price remaining above $1, Connexa has now regained full Nasdaq compliance.

“As already made public and approved by Connexa shareholders, the company is in the process of effecting a change in control, which will result in Yuanyu Enterprise Management (YYEM) becoming a subsidiary and Slinger Bag becoming a private company. As Connexa is now in full compliance with Nasdaq, we expect that the YYEM transaction can proceed to a close, subject to Nasdaq’s listing approval of the incoming YYEM entity,” commented Mike Ballardie, Connexa CEO.

More detailed information on Connexa Sports Technologies and Slinger Bag can be found at www.connexasports.com

About Connexa Sports Technologies:

Connexa Sports is a leading connected sports company delivering products, technologies, and Sport-as-a-Service across a range of sport verticals. Connexa’s mission is to reinvent sports through technological innovation driven by an unwavering focus on today’s sports consumer.

CNXA Contact Information:
investors@connexasports.com
www.connexasports.com

About Yuanyu Enterprise Management Co., Limited

Yuanyu Enterprise Management Co., Limited (YYEM) operates across the rapidly emerging love & marriage sector. YYEM owns numerous patents, technologies and algorithms that drive its big data and matchmaking analyses, deriving its current revenues from royalties. YYEM has multiple licensing agreements in place for non-Asia regions and, in addition, plans to open subsidiary companies in core Asia markets.

YYEM Contact Information:
info@yuanyuenterprise.com
www.yuanyuenterprise.com

Additional Information and Where to Find It

The Company’s stockholders will be able to obtain relevant documents filed with the SEC from the SEC’s website at www.sec.gov or from the Company’s website at https://www.connexasports.com/investor-relations/

Forward-Looking Statements

This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs or expectations, are forward-looking statements. These statements are based on plans, estimates, expectations and projections at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as “may,” “will,” “should,” “expect,” “opportunity,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described in this press release include, among others:

• the risks associated with the company’s relatively low public float, which may result in the company’s common stock experiencing significant price volatility;
  
• the possibility that competing transaction proposals may be made;
  
• the effects that the announcement, pendency or consummation of the proposed acquisition of YYEM and the spin-off of the Slinger Bag business may have on the Company and its current or future business and on the price of the common stock;
  
• the possibility that various closing conditions for acquisition of YYEM and the demerger of the Slinger Bag business may not be satisfied or waived, or any other required consents or approvals may not be obtained within the expected timeframe, on the expected terms, or at all;
  
• the effects that a termination or suspension of the acquisition of YYEM and the spin-off of the Slinger Bag business may have on the company, including the risk that the price of the common stock may decline significantly if the acquisition of YYEM and the spin-off of the Slinger Bag business is not completed;
  
• uncertainties regarding the company’s focus, strategic plans and other management actions;
  
• the risks associated with potential litigation related to the transactions contemplated by the acquisition of YYEM and the spin-off of the Slinger Bag business or related to any possible subsequent financing transactions or acquisitions or investments;
  
• uncertainties regarding general economic, business, competitive, legal, regulatory, tax and geopolitical conditions;
  
• and other factors, including those set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended April 30, 2023 and subsequent Quarterly Reports on Form 10-Q.
  

Forward-looking statements included in this report speak only as of the date each statement is made. Neither the company nor any person undertakes any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.

FAQ

How did Connexa Sports Technologies (YYAI) regain Nasdaq compliance?

Connexa Sports Technologies (YYAI) regained Nasdaq compliance through a reverse stock split on June 27, 2024, followed by maintaining a bid price above $1 for 10 consecutive trading days.

What is the status of Connexa's (YYAI) Nasdaq delisting determination?

Nasdaq has canceled the scheduled July 24, 2024 Hearing Panel and withdrawn the delisting determination for Connexa (YYAI) after the company regained compliance with bid price requirements.

What strategic changes are planned for Connexa Sports Technologies (YYAI)?

Connexa (YYAI) plans a change in control where Yuanyu Enterprise Management (YYEM) will become a subsidiary, and Slinger Bag will transition to a private company, subject to Nasdaq's approval of YYEM's listing.

When did Connexa Sports Technologies (YYAI) implement its reverse stock split?

Connexa Sports Technologies (YYAI) implemented its reverse stock split on June 27, 2024.