Chinese insurtech AIX announced it received a notification from Nasdaq stating that its American depositary shares (ADS) have fallen below the minimum price requirement. The company must take action to regain compliance.
AIX, established in 1998, is a leading intelligent technology-driven independent financial services provider in China. It provides 400 mn middle-class families with insurance protection, wealth management, and value-added services and provides independent financial advisors and various insurance/financial sales organizations with technical support and comprehensive solutions.
Through AI-driven insights and cutting-edge digital tools, AIX has successfully established itself as a leader in intelligent transformation within the financial services industry.
The notice, dated Feb. 24, came from Nasdaq’s Listing Qualifications Department. It stated that for 30 consecutive business days, AIX’s closing bid price was below the required minimum of $1.00 per share.
AIX clarified that the notification does not immediately affect the listing or trading of its securities on the Nasdaq Global Market. The company has 180 calendar days, until Aug. 25, to meet the requirement. If the closing bid price reaches at least $1.00 per share for 10 consecutive business days during this period, Nasdaq will confirm compliance, and the issue will be resolved.
Pursuant to the Nasdaq Listing Rules 5810(c)(3)(A), the Company is provided with a compliance period of 180 calendar days, or until August 25, 2025, to regain compliance under the Nasdaq Listing Rules.
If at any time during the 180-day compliance period, the closing bid price of the Company’s ADSs is US$1.00 per share or higher for a minimum of ten consecutive business days, the Nasdaq will provide the Company written confirmation of compliance and the matter will be closed.
In the event that the Company does not regain compliance by August 25, 2025, subject to the determination by the staff of Nasdaq, the Company may be eligible for an additional 180-day compliance period if it meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the minimum bid price requirement.
In this case, the Company will need to provide written notice of its intention to cure the deficiency during the second compliance period, including by effecting a reverse stock split, if necessary.
The Nasdaq notification letter will have no effect on the Company’s business operations, and the Company will take all reasonable measures to regain compliance.
Potential Positives
- The Nasdaq notification letter indicates that AIX has a compliance period of 180 days to regain compliance with the minimum bid price requirement, providing the company with a structured opportunity to address the situation.
- Despite the notification, there is no immediate effect on the listing or trading of the Company’s securities on the Nasdaq Global Market, allowing for continuity in trading and investor relations.
- AIX has the potential for an additional compliance period if needed, suggesting flexibility in their strategy to meet Nasdaq’s requirements.
- The company is actively taking measures to regain compliance, demonstrating a proactive approach to addressing the notification and support for investor confidence.
Potential Negatives
- The company has received a notification from Nasdaq indicating that its American depositary shares have been trading below the minimum required bid price of $1.00 for 30 consecutive business days, which raises concerns about its market standing.
- If the company fails to regain compliance by the deadline of August 25, 2025, it may face delisting from the Nasdaq Global Market, which could significantly impact its visibility and investor confidence.
- The need for a potential reverse stock split as part of regaining compliance can be viewed negatively by investors as it may indicate fundamental issues with the company’s share value.
