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SHENZHEN, China - MingZhu Logistics Holdings Limited (Nasdaq: YGMZ), a provider of logistics and transportation services, has been notified by the Nasdaq Stock Market LLC that its ordinary shares are subject to delisting. The notification, received on February 13, 2025, indicated that MingZhu's securities had closed below the minimum bid price of $1 per share for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). According to InvestingPro data, the company's stock has lost over 73% in the past year, with its market capitalization now standing at just $5.21 million.
The company is not eligible for a customary 180-day grace period to regain compliance due to a reverse stock split conducted on July 1, 2024, within the past year. MingZhu intends to appeal the delisting decision by February 20, 2025, which will temporarily stay the suspension of its securities, allowing them to remain listed on The Nasdaq Capital Market pending the hearing's outcome. InvestingPro analysis reveals concerning fundamentals, with a weak Financial Health Score and negative EBITDA of $9.22 million in the last twelve months.
In response to the delisting notice, MingZhu is exploring all available options to meet Nasdaq's requirements, including potentially seeking shareholder approval for another reverse stock split.
Founded in 2002 and based in Shenzhen, MingZhu Logistics specializes in trucking services across China, leveraging a combination of owned and subcontracted fleets. The company's logistics terminals in Guangdong Province and Xinjiang Autonomous Region facilitate tailored solutions for client deliveries. Recent financial data shows the company struggling with extremely low gross profit margins of 3.14% and a significant revenue decline of 49.19% year-over-year.
This report is based on a press release statement from MingZhu Logistics Holdings Limited. The company's future plans and statements made in the press release are forward-looking and should not be relied upon as guarantees of future performance. Investors are advised to consult additional filings by the company with the China Security Regulatory Commission for further details on factors that could affect MingZhu's operations.
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