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NetClass Technology Inc (NASDAQ:NTCL) reported Friday that, as a foreign private issuer, it has elected to follow certain corporate governance practices of its home country, the Cayman Islands, instead of specific Nasdaq requirements. The company disclosed this information in a filing with the U.S. Securities and Exchange Commission.
According to the statement, NetClass Technology will adhere to Cayman Islands practices in place of Nasdaq Listing Rule 5635, which typically requires shareholder approval before issuing securities in connection with acquisitions, equity-based compensation, changes of control, or certain transactions other than public offerings. The company noted that this approach is permitted under Nasdaq Listing Rule 5615(a)(3)(A) for foreign private issuers.
NetClass Technology stated it will disclose in its annual reports any Nasdaq requirements it does not follow, along with a description of the home country practices it observes instead. The company indicated that, aside from this difference, its corporate governance practices are generally consistent with those required of U.S. domestic companies listed on Nasdaq.
This information is based on a press release statement contained in the company’s Form 6-K filing with the SEC.
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