In a recent SEC filing, HWH International Inc., a wholesale pharmaceuticals distributor, disclosed that it received a notice from the Nasdaq Stock Market on Monday, September 4, 2024, concerning a potential delisting due to its stock price not meeting the minimum bid price requirement. The company, which trades under the ticker HWH on the Nasdaq Global Market, has seen its stock price remain below $1 for 30 consecutive business days, violating Nasdaq's Listing Rule 5450(a)(1).
Nasdaq has provided HWH International with a 180-day grace period, until March 3, 2025, to regain compliance with this rule. To achieve this, the company's closing bid price must reach at least $1 for a minimum of ten consecutive business days. If HWH International fails to meet this requirement within the allotted timeframe, it risks having its stock delisted from the Nasdaq Global Market.
The notice does not immediately affect the listing of HWH International's common stock, and the company's securities continue to be traded. Should the company not regain compliance by the deadline, it will be issued a delisting notification, at which point it may appeal the decision before a Nasdaq Hearings Panel.
HWH International, originally known as Alset Capital Acquisition Corp. before changing its name, is considering possible strategies to address the bid price issue and is committed to monitoring its stock performance closely.
In other recent news, HWH International faces a potential delisting from the Nasdaq Global Market due to a shortfall in market value. The wholesale drug distribution company was notified by the Nasdaq that it does not currently meet the minimum market value required for continued listing.
This follows a previous warning issued earlier this year, when HWH International's market value of publicly held shares fell below the required threshold. Despite attempts to address the deficiency, the company has not regained compliance within the given timeframe, leading to the initiation of the delisting process.
However, HWH International plans to appeal this decision before the deadline in early September. During the appeal process, the company's stock is expected to continue its listing on the Nasdaq.
This development, confirmed by the company's Chief Financial Officer, Rongguo Wei, in a recent report to the Securities and Exchange Commission, presents a significant challenge for the company.
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