HONG KONG - CLPS Incorporation (NASDAQ:CLPS), a global IT consulting and solutions service provider, has been notified by The Nasdaq Stock Market LLC of non-compliance with the minimum bid price rule. The notice, dated June 10, 2024, states that CLPS's common shares have closed below the required $1.00 minimum bid price for 30 consecutive trading days, as stipulated by Nasdaq Listing Rule 5450(a)(1).
The company's listing and trading on the Nasdaq Global Market remain unaffected at this time. CLPS has been allotted 180 days, ending on December 9, 2024, to meet the minimum bid price condition. Compliance requires the company's stock to maintain a closing bid price of at least $1.00 for at least 10 consecutive business days within this timeframe.
Should CLPS fail to achieve compliance by the deadline, it may be granted an additional 180-day period to meet the requirement by transitioning to the Nasdaq Capital Market, assuming all other listing criteria are met. The company may consider a reverse stock split to rectify the bid price deficiency if necessary.
CLPS has expressed its commitment to undertaking reasonable actions to regain compliance with Nasdaq's minimum bid price requirement. This notification does not influence the company's business operations.
Based in Hong Kong, CLPS serves a network of clients in the global financial service industry, including institutions in the U.S., Europe, Australia, Asia, and their IT centers in the PRC. The company operates 20 delivery and/or research & development centers worldwide.
This news is based on a press release statement.
InvestingPro Insights
As CLPS Incorporation (NASDAQ:CLPS) navigates the challenges of meeting Nasdaq's minimum bid price rule, investors are keeping a close eye on the company's financial metrics. According to recent data from InvestingPro, CLPS holds a market capitalization of $24.08 million USD, indicating its size within the IT consulting and solutions sector. Notably, the company's Price / Book ratio stands at a low 0.38 as of the last twelve months ending Q2 2024, which might attract investors looking for potentially undervalued companies.
InvestingPro Tips suggest that CLPS is trading at a low revenue valuation multiple and that its liquid assets exceed short-term obligations, which may provide some financial flexibility in the short term. However, the company is not profitable over the last twelve months, and it suffers from weak gross profit margins of 21.86%, a factor that could be of concern to potential investors. Additionally, CLPS does not pay a dividend, which might influence the investment decisions of income-focused shareholders.
Investors interested in a deeper analysis of CLPS Incorporation can access additional InvestingPro Tips on InvestingPro. There are a total of 7 tips available, which provide a comprehensive overview of the company's financial health and market position. For those considering an InvestingPro subscription, the use of coupon code PRONEWS24 offers an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing the value of this investment research tool.
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