JMU Faces Delisting from Nasdaq for Trading Below $1 per ADS
The Shanghai-based company now has 180 calendar days, or until July 3, to boost its stock price above $1 for a minimum of ten consecutive business days.
JMU Ltd. (Nasdaq: JMU), an online e-commerce platform for the foodservice industry in China, said today it has received a notice from the Nasdaq on January 4, notifying that the company is currently not in compliance with the minimum bid price requirement.
According to the announcement, JMU did not comply with the $1 minimum bid price requirement set forth in Nasdaq Listing Rule. The company's American depositary shares closed below $1 per share for the last 30 consecutive business days from November 19, 2018 through January 3.
The Shanghai-based company now has 180 calendar days, or until July 3, to boost its stock price above $1 for a minimum of ten consecutive business days. In the event the company fails to regain compliance before July 3, the company may be eligible for requesting additional time.
As previously announced in August, the company has already received shareholder approval to execute a reverse1-for-10 stock split, common share consolidation, to help the company regain compliance with Nasdaq minimum stock price requirements. The move was effective July 31. Each of JMU's ADS holder of record was required to exchange every 10 ADSs held for one new ADS, the company said.
The stock, however, plunged further after the reverse stock split.
JMU was trading at $0.7 per share in late afternoon in New York today, down 3 cents, or 4 percent.