HONG KONG - China Natural Resources, Inc. (NASDAQ:CHNR), a metals exploration company, has been notified by the Nasdaq Capital Market that it is not in compliance with the minimum bid price requirement. As per the notification received on July 5, 2024, the company's stock has closed below the $1.00 minimum bid for 30 consecutive business days.
The Nasdaq Listing Rule 5550(a)(2) stipulates that listed companies must maintain a minimum bid price of $1.00 per share. The notice does not immediately affect the company's listing, allowing its common shares to continue trading on the Nasdaq under the ticker "CHNR".
China Natural Resources has until January 2, 2025, to meet the minimum bid price requirement. To regain compliance, the company's common shares must close at $1.00 or higher for at least ten consecutive business days during this 180-day period. If the company fails to achieve compliance by this deadline, it may be granted an additional 180-day grace period.
The company, incorporated in the British Virgin Islands with operating subsidiaries in the People's Republic of China, focuses on exploring lead, silver, and other metals in the Inner Mongolia Autonomous Region. It is also exploring further business opportunities in the natural resources sector.
This development is significant for investors as the potential delisting could impact the stock's liquidity and accessibility. However, the company has time to address the issue and seek compliance with Nasdaq's requirements. The information in this article is based on a press release statement from China Natural Resources, Inc.
InvestingPro Insights
Amidst the challenges faced by China Natural Resources, Inc. (NASDAQ:CHNR), the latest data and analysis from InvestingPro offer a deeper look into the company's financial health and market performance. With a market capitalization of just $7.6 million, the company's position is delicate, underscored by a negative adjusted P/E ratio of -6.63 for the last twelve months as of Q4 2023. This indicates that investors have concerns about the company's profitability.
Despite recent setbacks, CHNR has experienced a significant return over the last week, with a price total return of 11.6%. This short-term surge could be a sign of investor confidence in the company's potential to overcome its current hurdles. However, looking at a broader timeline, the stock has encountered a steep decline, with a one-year price total return of -62.8%, reflecting the long-term challenges it faces.
InvestingPro Tips highlight that CHNR holds more cash than debt on its balance sheet, which could provide some financial flexibility in its efforts to regain compliance with Nasdaq's minimum bid price requirement. Additionally, the valuation implies a strong free cash flow yield, which might be an attractive point for value investors. For those considering an investment in CHNR or seeking more insights, InvestingPro offers a total of 11 additional tips on the company's performance and prospects. Interested readers can explore these tips further and benefit from a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Investors should note that the company does not pay a dividend, which could influence the investment decision for those seeking income-generating assets. The balance between the recent positive price movement and the longer-term downward trend will be crucial for stakeholders monitoring the company's progress towards meeting Nasdaq's requirements.
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