공지 • Jun 01
Asset Entities Receives Written Notification from Nasdaq Due to it No Longer Complies with the Requirement under Nasdaq Listing Rule 5550(b)
On May 23, 2024, Asset Entities Inc. (the ‘Company’), received a written notification (the ‘Notice’) from the Listing Qualifications Department (the ‘Staff’) of The Nasdaq Stock Market LLC (‘Nasdaq’) informing the Company that it no longer complies with the requirement under Nasdaq Listing Rule 5550(b) to maintain a minimum of $2,500,000 in stockholders’ equity for continued listing on The Nasdaq Capital Market (the ‘Stockholders’ Equity Rule’) because the Company reported stockholders’ equity of $1,862,255 in its Quarterly Report on Form 10-Q for the period ended March 31, 2024, and, as of the date of the Notice, the Company did not meet the alternatives of market value of listed securities or net income from continuing operations. Accordingly, the Notice indicates that this matter serves as an additional basis for delisting the Company’s securities from Nasdaq. However, as a result of the financing transaction described below, the Company’s stockholders’ equity is now above $2.5 million, and pending Nasdaq review, believes it exceeds the requirement under the Stockholders’ Equity Rule as of the date of this filing. The Notice provides that it is formal notification that the Nasdaq Hearings Panel (the ‘Panel’) will consider this matter in their decision regarding the Company’s continued listing on The Nasdaq Capital Market, and that the Company should present its views with respect to this additional deficiency to the Panel in writing no later than May 30, 2024. The Notice is in addition to the previously-disclosed prior written notification that the Company received from the Staff on September 28, 2023 notifying the Company that it was not in compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market (the ‘Bid Price Rule’). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided 180 calendar days, or until March 26, 2024, to regain compliance with the Bid Price Rule. On March 27, 2024, the Company received a written notification from the Staff notifying the Company that it had not regained compliance with the Bid Price Rule and was not eligible for a second 180-day compliance period; specifically, the Company did not comply with the $5,000,000 minimum stockholders’ equity initial listing requirement for The Nasdaq Capital Market as of March 26, 2024. Accordingly, the Company timely requested a hearing before the Panel. The hearing request automatically stayed any suspension or delisting action pending the conclusion of the hearings process. On April 18, 2024, the Company received a notice from the Panel indicating that the Panel had determined to grant the Company’s request pursuant to Nasdaq’s expedited review process and that an oral hearing was not necessary in order to grant the Company a temporary exception to regain compliance with the Bid Price Rule. The Company was eligible for consideration for Nasdaq’s expedited review process because it had been determined that the Company had no deficiencies with respect to the Nasdaq listing standards other than with respect to the Bid Price Rule. Accordingly, the Company was granted an exception until July 17, 2024 to regain compliance, subject to compliance with certain terms, including: (i) that, on or before July 1, 2024, the Company must effect a reverse stock split and, thereafter, maintain a $1.00 closing bid price for a minimum of ten consecutive business days; and (ii) that, on or before July 17, 2024, the Company must have demonstrated compliance with the Bid Price Rule, by evidencing a closing bid price of $1.00 or more per share for a minimum of ten consecutive trading sessions. The Panel reserved the right to reconsider the terms of the exception based on any event, condition, or circumstance.