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GUANGZHOU, CHINA - Youxin Technology Ltd (NASDAQ:YAAS), currently valued at $5.36 million in market capitalization, received a delisting notice from Nasdaq on September 22 due to its share price falling below $0.10 for ten consecutive trading days, the company announced Friday. According to InvestingPro data, the stock has declined over 97% year-to-date.
Unless the company successfully appeals, its securities will be suspended from trading on October 1. This follows an earlier notification on August 13 that Youxin was not in compliance with Nasdaq’s $1.00 minimum bid price requirement. InvestingPro analysis indicates the company maintains a current ratio of 2.53, suggesting sufficient liquid assets to meet short-term obligations despite its pricing challenges.
In response, Youxin’s board approved a one-for-eighty share consolidation effective September 30, aimed at regaining compliance with Nasdaq’s pricing requirements. The consolidation will reduce the company’s outstanding Class A ordinary shares from approximately 171.3 million to 2.1 million, with the stock continuing to trade under the YAAS symbol but with a new CUSIP number. The stock has shown significant volatility, with InvestingPro reporting a 12% gain in the past week despite a 96% decline over the last six months.
"The Company’s operations are not affected by the receipt of the Staff Determination Notice," Youxin stated in its press release. The company plans to appeal Nasdaq’s determination, which will stay the suspension pending the panel’s decision.
Youxin Technology, which provides software as a service (SaaS) and platform as a service (PaaS) solutions for retail enterprises, has until March 23, 2026, to regain compliance with the minimum bid requirement according to the original August notice.
The share consolidation will adjust the par value of shares to $0.008 and reduce authorized Class A ordinary shares from 400 million to 5 million. No fractional shares will be issued, with totals rounded up to the next whole share.
In other recent news, Youxin Technology Ltd has announced a significant acquisition, agreeing to acquire a 51% stake in Celnet Technology Co., Ltd., China’s largest Salesforce partner. The agreement involves a cash payment of approximately $736,461, along with additional equity and cash incentives tied to performance targets. This move marks a strategic expansion for Youxin Technology in the Salesforce ecosystem. Additionally, Youxin Technology has successfully closed a $6 million public offering. The offering consisted of 21,428,571 Common Units priced at $0.28 each, including ordinary shares and warrants. This public offering is intended to raise gross proceeds before fees and expenses are deducted. These recent developments indicate a period of strategic growth and financial maneuvering for Youxin Technology.
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