Token Cat completes $23 million share offering to address Nasdaq compliance

Published 11/07/2025, 21:28
Token Cat completes $23 million share offering to address Nasdaq compliance

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.