BIMI Holdings Inc. (NASDAQ:BIMI), a wholesale drug distributor, received a notification from The Nasdaq Stock Market LLC indicating that the company's common stock is subject to delisting. The notice, dated Monday, stemmed from BIMI Holdings' failure to file its annual and quarterly financial reports on time, a non-compliance with Nasdaq Listing Rule 5250(c)(1).
The company, previously known as BIMI International Medical Inc., BOQI International Medical, Inc., and NF Energy Saving Corp, has been grappling with internal control deficiencies, particularly ineffective financial reporting controls cited in its last three annual reports. Efforts to appoint a qualified Chief Financial Officer since June 2023 have been unsuccessful, contributing to the company's compliance challenges.
The Nasdaq staff's decision to deny BIMI Holdings' request for continued listing was influenced by the company's delinquency in filing five of its last six periodic reports. The company plans to appeal this determination by requesting a hearing before a Nasdaq Hearings Panel. The deadline for this request is July 30, 2024, which will temporarily stay the suspension of the company's securities. Should BIMI Holdings not appeal, its securities will be suspended starting August 1, 2024, followed by a formal delisting process.
InvestingPro Insights
Investors keeping a close eye on BIMI Holdings Inc. (NASDAQ:BIMI) should consider recent financial metrics and market performance to better understand the company's current situation. With a market capitalization of $16.4 million, BIMI's financial health appears precarious, as indicated by a negative P/E ratio of -0.52, reflecting its lack of profitability in the last twelve months as of Q3 2023. This is further emphasized by a significant revenue growth of 91.6% in the same period, which contrasts with a quarterly revenue decline of nearly 48.85% in Q3 2023. The company's gross profit margin stands at 40.3%, yet it's important to note that BIMI Holdings has been operating at a loss, with an operating income margin of -56.04%.
InvestingPro Tips highlight several concerns for BIMI Holdings, such as the company's rapid cash burn and its volatile stock price movements. The stock has indeed taken a substantial hit, declining by 13.12% in the past week and by 57.17% over the last six months. Moreover, BIMI does not offer a dividend, which could be a deterrent for income-focused investors. For those considering diving deeper into BIMI's financials and stock performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/BIMI, which can provide further insights into the company's outlook. To access these tips, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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