China Lending Faces Delisting From Nasdaq; Stock Drops Below $1
Shares in the lending platform fell nearly 3 percent on the day to 95 cents after it announced it has until Feb. 19 to regain compliance with the stock market.
China Lending Corp. (Nasdaq: CLDC) announced today that it received a notice of non-compliance from the Nasdaq stock market earlier this month for failing to hold an annual shareholder meeting for the 12 months since December 2017.
In response, shares in the Beijing lending company, which serves small- and medium-sized enterprises in China, dropped nearly 3 percent Tuesday to 95 cents apiece.
According to the statement, the warning from Nasdaq has no immediate effect on China Lending's stock. It has until Feb. 19 to regain compliance.
The company said it intended to file a compliance plan "as soon as practicable."
Nasdaq Listing Rule 5620 requires companies to hold annual shareholder meetings no less than one year after the end of each fiscal year. If the stock market accepts China Lending's plan, it may grant the company until July 2, 2019, to regain compliance.
Listed in the U.S. since November 2014, China Lending has been trading at its lowest level this year. In late 2016, it transferred its listing to the Nasdaq Capital Market from the Nasdaq Stock Market after it failed to have its warrants meet the minimum 400 round lot holder requirement under Nasdaq Marketplace Rule 5515(a)(4).