Chinese insurtech XChange TEC INC to appeal a Nasdaq delisting notice after failing to maintain the required $35 mn minimum market value of listed securities.
The company filed the appeal. This move will temporarily pause any further delisting steps.
XChange has faced repeated issues meeting Nasdaq’s listing rules. It previously received a warning for not meeting the $1 minimum share price but has since fixed that issue.
Earlier this month, XChange changed the ratio of its American depositary shares (ADS). One ADS now equals 2,400 Class A ordinary shares, up from 120. This works like a one-for-twenty reverse ADS split.
XChange said it will work to fix the market value issue but noted it cannot predict how the Nasdaq panel will respond or whether it will succeed in regaining compliance.
Nasdaq first raised the issue in November, giving the company 180 days to meet the $35 mn market value requirement to avoid being removed from the Nasdaq Capital Market.
XChange is a Chinese insurance agency and technology company with a license to operate in mainland China.
The company recently acquired an insurance broker in Hong Kong. It said this move supports its expansion into Hong Kong and helps it provide services for risk and wealth planning.
It also said its local licenses make it possible to offer insurance products aimed at Asia’s high-net-worth clients.
XChange TEC INC has acquired a Hong Kong-based insurance broker, establishing a base to expand its services across China and international markets.
The company said the acquisition supports its strategy for regional expansion in the Asia-Pacific. It did not disclose the name of the acquired firm.
According to XChange TEC INC, insurance demand in Hong Kong continues to grow, driven by clients from mainland China and expatriates seeking international-standard financial protection.
The company noted that Hong Kong’s position as a financial hub provides access to high net worth individuals, multinational companies, and cross-border investors.
