HONG KONG - MMTEC, Inc. (NASDAQ: MTC), a technology firm offering access to U.S. financial markets, disclosed on Monday that it has been notified by Nasdaq of non-compliance with the exchange's minimum bid price rule. The notification, received on July 8, 2024, indicated that MMTEC's common stock had closed below the required $1.00 per share over the last 30 consecutive business days.
The current status does not affect the company's stock listing or trading on the Nasdaq Capital Market. MMTEC has until January 6, 2025, to meet the minimum bid price requirement. Compliance can be achieved if the stock's closing bid price reaches at least $1.00 for a minimum of 10 consecutive business days within this 180-day period.
Should MMTEC fail to regain compliance by the deadline, it may be granted an additional 180 days, provided it meets all other initial listing standards, except the bid price requirement. In such a scenario, the company would need to submit a plan to address the deficiency, which could include a reverse stock split implemented at least ten business days before the second deadline.
The company is considering options to regain compliance, including a potential reverse stock split, but there is no certainty that it will achieve the necessary bid price.
MMTEC, headquartered in the Hong Kong Special Administrative Region, primarily engages in investment banking and asset management, offering comprehensive financial services to its customers.
The information in this article is based on a press release statement from MMTEC, Inc.
InvestingPro Insights
As MMTEC, Inc. (NASDAQ: MTC) navigates through its Nasdaq minimum bid price non-compliance issue, investors are closely monitoring the company's financial health and stock performance. According to recent InvestingPro data, MMTEC has an adjusted market capitalization of $78.12 million, with a striking gross profit margin of 80.12% for the last twelve months as of Q4 2023. Despite this robust margin, the company has experienced a significant revenue decline of 18.95% during the same period, with total revenue standing at $0.87 million.
InvestingPro Tips highlight that MMTEC's stock has been subject to high price volatility and has suffered notable declines, with a 1-week price total return of -10.59% and a dramatic 3-month price total return of -78.53%. Moreover, the stock's price performance over the last five years has been poor, which may be of concern to potential and current investors. With the stock trading at a high revenue valuation multiple, and the company not being profitable over the last twelve months, these factors could be contributing to the challenges in meeting Nasdaq's minimum bid price requirement.
For investors seeking a deeper analysis of MMTEC and its potential investment opportunities, InvestingPro offers a comprehensive suite of tools and additional tips. Currently, there are six more InvestingPro Tips available for MMTEC, which can be accessed by visiting InvestingPro. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a valuable resource for informed investment decisions.
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