BETHESDA, MD - HWH International Inc. (NASDAQ:HWH), a wholesale drug distribution company, has been notified by the Nasdaq Stock Market that it does not currently meet the minimum market value required for continued listing on the Nasdaq Global Market. The company has been given a deadline until September 3, 2024, to appeal this decision.
The Nasdaq's notification, dated August 27, 2024, follows an earlier warning issued on February 22, 2024, when HWH International was first informed that its market value of publicly held shares (MVPHS) had fallen below the $15 million threshold required by Listing Rule 5450(b)(2)(C). The company was initially given 180 days to regain compliance.
Despite efforts to address the deficiency, the company has not met the Nasdaq's requirement within the allotted timeframe. As a result, the Nasdaq has initiated the delisting process. HWH International, however, intends to request an appeal before the early September deadline. During the appeal process, the company's stock is expected to remain listed on the Nasdaq.
The company's Chief Financial Officer, Rongguo Wei, signed off on the report filed with the Securities and Exchange Commission (SEC) on Thursday, which disclosed the delisting notice and the company's intention to appeal.
This development comes as a challenge for HWH International, which operates under the organization name 07 Trade & Services, and is incorporated in Delaware. The company, formerly known as Alset Capital Acquisition Corp., has its principal executive offices in Bethesda, Maryland.
InvestingPro Insights
As HWH International Inc. (NASDAQ:HWH) faces the prospect of delisting from the Nasdaq Global Market, investors are weighing the company's recent performance and market position. According to real-time data from InvestingPro, HWH International has a market capitalization of $12.15 million, reflecting the challenges it faces in maintaining compliance with Nasdaq's listing requirements. Despite a significant return over the last week, with a price total return of 22.42%, the stock has experienced a steep decline over the past year, with a one-year price total return of -92.91%. This volatility is further underscored by a price that is currently just 6.06% of its 52-week high.
InvestingPro Tips suggest that HWH International's stock trades with high price volatility and often moves in the opposite direction of the market. These traits, coupled with the company's inability to generate profitability over the last twelve months, may contribute to investor uncertainty. Additionally, the company operates with a moderate level of debt and its short-term obligations exceed its liquid assets, further complicating its financial stability.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available that provide deeper insights into HWH International's financial health and market potential. With the next earnings date slated for November 12, 2024, stakeholders will be looking closely at the company's performance and strategies for regaining compliance and stability.
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