Chanson faces Nasdaq delisting over share price rule

Published 13/03/2025, 13:10
Chanson faces Nasdaq delisting over share price rule

URUMQI, China - Chanson International Holding (NASDAQ:CHSN), a provider of bakery and beverage products with a market capitalization of $6.42 million and annual revenue of approximately $16 million, has been notified by Nasdaq that it no longer meets the minimum bid price requirement for continued listing on the exchange. The stock has declined over 95% year-to-date, currently trading at $0.23. The company’s Class A ordinary shares have closed below the $1 threshold for the past 30 consecutive business days, triggering a notice from Nasdaq’s Listing Qualifications Department on March 10, 2025.

This notice does not immediately affect Chanson’s listing or trading on Nasdaq. The company has been granted a 180-day period, until September 8, 2025, to regain compliance with the minimum bid price rule. According to InvestingPro analysis, the company operates with significant debt burden and faces challenges with cash burn, which could complicate its recovery efforts. If Chanson fails to meet this requirement within the allotted time, it may receive an additional 180 days to comply, provided it meets other initial listing standards and submits a plan to address the bid price deficiency, potentially through a reverse stock split.

Chanson, established in 2009 and headquartered in Urumqi, China, operates a network of 46 stores in China and three in New York City. The company’s offerings include packaged bakery goods, made-in-store pastries, and a variety of beverage products. Chanson’s business model encompasses both physical stores and digital sales platforms. InvestingPro analysis reveals 16 additional key insights about the company’s financial health and market position, available to subscribers.

The company is currently exploring options to regain compliance with Nasdaq’s listing rules. However, there is no guarantee that Chanson will be successful in meeting the necessary requirements to maintain its listing. With a current ratio of 0.84 and short-term obligations exceeding liquid assets, the company faces significant financial challenges. This announcement is based on a press release statement from Chanson International Holding.

In other recent news, Chanson International Holding has announced it will hold an extraordinary general meeting (EGM) of shareholders on March 10, 2025. The announcement was accompanied by the distribution of documents, including a notice and proxy statement dated February 21, 2025, and a proxy card for voting purposes. These materials are intended to inform shareholders about the meeting’s agenda and voting procedures. The company, formerly known as RON Holding Ltd, underwent a name change on September 18, 2020, and is incorporated under the laws of the Cayman Islands. The nature of the matters to be discussed at the EGM has not been disclosed in the filing. Shareholders are encouraged to review the proxy materials and exercise their voting rights. The filing was made by CEO, Director, and Chairman of the Board of Directors, Gang Li, indicating compliance with the Securities Exchange Act of 1934. Specific resolutions or proposals to be presented at the EGM have not been made public.

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