Origin Agritech Ltd. (Nasdaq: SEED) announced Wednesday that it has regained compliance with The Nasdaq Capital Market’s minimum market value of listed securities.
For 20 straight business days from July 2, Nasdaq determined that the agriculture technology firm’s value of listed securities has been at $35 million or greater, according to a statement from Origin today.
The news follows a warning it received from Nasdaq in early March for not complying with the minimum requirements of $2.5 million stockholders' equity, $35 million market value of listed securities, or $500,000 of net income from continuing operations.
However, despite the news, the stock plummeted 7% to $10.91 per American depositary share by midday Wednesday. However, Origin’s stock has been soaring since late May. Since its close on May 28, the stock has surged 204% to date.
Established in 1997, Origin claims it is China’s leading agricultural biotechnology company. Based in Zhong-Guan-Cun Life Science Park in Beijing, it specializes in crop seed breeding and genetic improvement, seed production, processing, distribution, and related technical services.
The company last reported its financials for the year ending September 2019; in the period it generated revenue of 92.44 million yuan, up 615% year-over-year. Net loss narrowed to 65.65 million yuan versus 152.79 million yuan for the same period in the preceding year.
In late July, Origin announced it had teamed up with a division of the Chinese Academy of Agriculture Sciences, Biotechnology Research Institute to commercialize to broaden collaborations in GMO soybean research and commercialization.