Canopy Growth stock tumbles after announcing $200 million share sale plan
Token Cat Ltd (NASDAQ:TC), a business services company based in Beijing, announced Friday that it has completed a $23 million share offering intended to address a previous Nasdaq compliance deficiency related to minimum stockholders’ equity requirements.
According to a press release statement and a filing with the U.S. Securities and Exchange Commission, Token Cat received a notification from Nasdaq on January 16, indicating the company was not in compliance with the minimum stockholders’ equity threshold of $2.5 million as required under Nasdaq Listing Rule 5550(b)(1). As of June 30, 2024, the company reported a stockholders’ deficit of $787,000 and did not meet alternative listing standards.
On February 28, Token Cat entered into a securities purchase agreement with certain non-U.S. investors, agreeing to sell up to 7,357,500,000 Class A ordinary shares at $0.0031317 per share, totaling approximately $23.04 million. The company stated that proceeds from the offering would be used to enter new business areas and for general corporate purposes.
The company submitted a compliance plan to Nasdaq on March 3, outlining its intent to complete the offering to restore compliance with equity requirements. On June 27, after satisfying all closing conditions, Token Cat issued the full amount of shares and received gross proceeds of about $23 million.
As of the date of the report, Token Cat stated it believes it has regained compliance with Nasdaq’s stockholders’ equity requirement following the completion of the offering. Nasdaq will continue to monitor the company’s compliance, and Token Cat may be subject to delisting if it fails to demonstrate ongoing compliance in its interim financial statements for the six-month period ended June 30, 2025.
All information is based on a press release statement and the company’s filing with the SEC.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.