China Bat Group Gets Warning from Nasdaq Amid Turbulent Times
Over the past month, the Beijing-based car rental provider received more than one warning from the Nasdaq and carried out changes in its senior management.
China Bat Group Inc. (Nasdaq: GLG) disclosed on Wednesday that it has received a warning from the Nasdaq stock market on the grounds that its share price has fallen below minimum listing requirements, sending its stock 5 percent lower intraday, to 42 cents per American depositary share.
The used luxury car rental service provider has 180 calendar days to regain compliance by retaining the value of its shares at more than $1 for a minimum of 10 consecutive business days, the company stated in a report.
China Bat Group formerly provided financial services under the name China Commercial Credit Inc. (Nasdaq: CCCR). It shifted its line of business and executed a name change a year ago.
In April, the Beijing-based company reported annual profit of $7.65 million for 2018 for the first time in five years. Jiaxi Gao, the chief executive officer of China Bat Group, said that it expects growth opportunity in the high-end car rental market of Chengdu, Shenzhen, Sanya and Xiamen in 2019.
In May, the company delayed posting its quarterly financial results and later reported losses of $1.8 million, or 35 cents per ADS, for the quarter ended in March.
On June 14, both the chief financial officer Long Yi and the chief operating officer Zhe Ding resigned from China Bat Group. The company appointed Yang An as its CFO.
At about the same time, the company received a notice of non-compliance from the stock exchange regarding the minimum price requirements for the exercise price of its warrants. The company is expected to submit a compliance plan including a listing of additional shares notification to regain approval from the Nasdaq.