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Addentax Group Corp. (NASDAQ:ATXG), a micro-cap company with a market capitalization of $6.51 million specializing in mailing, reproduction, commercial art and photography services, has received a notification from Nasdaq Listing Qualifications Department on Monday, April 9, 2025, concerning its non-compliance with the minimum bid price requirement. According to InvestingPro data, the stock currently trades at $0.61, significantly below its 52-week high of $1.18. The notice indicated that Addentax’s common stock had been trading below the $1.00 threshold for 30 consecutive business days, violating the Nasdaq Listing Rule 5550(a)(2). InvestingPro analysis reveals the stock has experienced a -26.15% decline over the past year, though it maintains strong liquidity with a current ratio of 8.64, indicating robust short-term financial health.
The current status does not lead to an immediate delisting of Addentax’s shares, which will continue to be traded on the Nasdaq Capital Market under the ticker symbol ATXG. Trading at just 0.25 times book value, the stock appears undervalued according to InvestingPro Fair Value metrics. The company has been granted a 180-day period, until October 6, 2025, to regain compliance with the Minimum Bid Price Rule. Compliance can be achieved if the company’s common stock maintains a closing bid price of at least $1.00 for at least ten consecutive business days within this timeframe.
Should Addentax fail to meet the minimum bid price by the end of the initial compliance period, it may qualify for an additional 180-day grace period, provided it meets all other initial listing standards for the Nasdaq Capital Market, except for the bid price requirement. The company would need to communicate its intention to address the bid price deficiency, potentially through a reverse stock split, which must be completed at least ten business days before the end of the second compliance period, if granted. InvestingPro identifies several additional key metrics and insights about ATXG’s financial health, with 10+ additional ProTips available to subscribers.
The disclosure of this compliance issue is in line with Nasdaq’s Listing Rules that mandate public announcement of such notifications. This information is based on a press release statement and aims to ensure transparency for investors and stakeholders regarding Addentax Group Corp.’s listing status and efforts to maintain compliance with Nasdaq’s requirements.
In other recent news, Addentax Group Corp. has successfully regained compliance with Nasdaq’s minimum bid price requirement. The company’s common stock maintained a closing bid price at or above $1.00 for ten consecutive business days, from February 7 to February 21, 2025. This compliance follows a notification from Nasdaq in April 2024, which highlighted the stock’s failure to meet the minimum bid price over a 30-day period. By meeting the criterion of Nasdaq Listing Rule 5450(a)(1), Addentax ensures its continued listing on the Nasdaq stock exchange. The company has expressed optimism about its financial and operational strategies but cautions investors about forward-looking statements that involve risks and uncertainties. Investors are advised to consider the risk factors detailed in Addentax’s filings with the SEC, including the Annual Report on Form 10-K for the year ended March 31, 2023. These factors could impact the company’s future results and are crucial for making informed investment decisions. This update is based on a press release from Addentax Group Corp. and provides current information on the company’s compliance status with Nasdaq’s listing requirements.
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