HANGZHOU, China - Kaixin Auto Holdings (NASDAQ: KXIN), a prominent electric vehicle manufacturer in China, has been notified by the Nasdaq Stock Market of a non-compliance issue regarding its stock price. The company disclosed today that it received a letter from Nasdaq on February 1, 2024, indicating that for 30 consecutive business days ending January 31, 2024, Kaixin's common stock did not meet the minimum bid price of $1.00 required for continued listing.
Despite this notice, Kaixin's listing on the Nasdaq Capital Market remains unaffected at present. The company has been granted a 180-day period until July 30, 2024, to regain compliance with Nasdaq's minimum bid price rule. To achieve this, the closing bid price of Kaixin's stock must reach or exceed $1.00 per share for at least 10 consecutive business days before the deadline. If Kaixin accomplishes this, Nasdaq will confirm that the company has regained compliance.
Should Kaixin fail to meet the compliance requirements by July 30, 2024, but still satisfies all other initial listing standards for the Nasdaq Capital Market, except the bid price, it may be eligible for an additional 180-day period to regain compliance. However, if the company is not in compliance by the end of this extension and is ineligible for further grace periods, it risks receiving a delisting notice from Nasdaq. In such an event, Kaixin would have the right to appeal the decision.
The company has stated its intention to monitor its stock's closing bid price closely and to evaluate possible options should the price remain below the $1.00 threshold.
The information in this article is based on a press release.
InvestingPro Insights
In light of Kaixin Auto Holdings' recent notification from Nasdaq regarding its stock price, real-time data and insights from InvestingPro could provide investors with a clearer picture of the company's financial situation. Currently, Kaixin's market capitalization stands at a modest $8.25 million. The company trades at a low Price/Book multiple of 0.3, suggesting that the stock might be undervalued relative to the company's book value. However, this must be weighed against the significant revenue decline over the last twelve months, with a decrease of 76.01%, indicating potential challenges in the company's operations and market performance.
InvestingPro Tips highlight several critical aspects for investors to consider. Kaixin is trading near its 52-week low and has shown high price volatility, which could be a concern for risk-averse investors. Additionally, the company is quickly burning through cash, which is reflected in its negative gross profit margin of -0.99% for the last twelve months as of Q2 2023. These factors underscore the importance of closely monitoring the company's financial health and stock performance.
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