Addentax Group (ATXG) Receives Extension from Nasdaq for Minimum Bid Price Compliance

Addentax Group (NASDAQ: ATXG) recently received notification from Nasdaq that it has been granted an extension to regain compliance with the Minimum Bid Price Rule. The company had previously fallen below the required minimum bid price of $1.00 per share for 30 consecutive business days, triggering a notice from the Listings Qualifications Department of Nasdaq.

In response to the initial notice received on April 24, 2024, Addentax Group was given 180 days to meet the Minimum Bid Price Rule, with a deadline set for October 21, 2024. Despite efforts, the company did not achieve compliance within the stipulated time frame and subsequently requested an additional 180-day extension.

On October 22, 2024, Nasdaq notified Addentax Group that it qualifies for an extended compliance period until April 21, 2025. This determination was made based on the company meeting all other initial listing standards for the Nasdaq Capital Market except for the Minimum Bid Price Rule. Addentax Group intends to regain compliance by ensuring that the closing bid price of its Common Stock reaches or exceeds $1 per share for at least 10 consecutive business days during this extended period.

In the event that Addentax Group fails to demonstrate compliance by the deadline, Nasdaq retains the right to delist the company’s securities. However, Addentax Group can appeal such a decision to a hearings panel should the need arise.

Addentax Group disclosed that it is actively working towards regaining compliance with the Minimum Bid Price Rule and has already obtained shareholder approval for a reverse stock split if necessary to meet the Nasdaq’s requirements. Despite these efforts, the company cautions that there is no guarantee of sustained compliance once achieved.

For further updates on Addentax Group’s compliance status and efforts to meet Nasdaq’s requirements, shareholders and investors are advised to stay informed about the company’s progress moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Addentax Group’s 8K filing here.

About Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services.