BEIJING - Quhuo Limited (NASDAQ: QH), a prominent gig economy platform in China, is currently not meeting Nasdaq's listing requirements, according to recent notifications from the stock exchange. The company's American depositary share (ADS) has been trading below the minimum bid price of $1.00 for 30 consecutive days, and its market value of publicly held shares has fallen short of the $15 million threshold.
The notifications, dated May 10, 2024, do not immediately affect Quhuo's listing on the Nasdaq Global Market. The company has until November 6, 2024, to regain compliance with both the minimum bid price and the market value requirements. Quhuo must maintain a closing bid price of at least $1.00 for 10 consecutive trading days and a market value of publicly held shares of at least $15 million for the same duration within this compliance period to meet Nasdaq's standards.
If Quhuo fails to meet the minimum bid price requirement by the deadline, it may request additional time by applying to transfer to the Nasdaq Capital Market and paying a $5,000 application fee. The company must also meet all other initial listing standards, except for the bid price requirement, and possibly implement a reverse stock split if necessary.
Should Quhuo not regain compliance with the market value requirement by the set date, it risks receiving a delisting notification. The company may appeal this determination or consider transferring to the Nasdaq Capital Market before the compliance period expires.
Quhuo is currently in accordance with all other Nasdaq continued listing standards, and the notifications do not impact the company's business operations or reporting requirements. The company is evaluating options to address these deficiencies and regain compliance to maintain its listing.
Quhuo's business focuses on linking workers with local life service providers in China, offering solutions across various sectors, including on-demand delivery and housekeeping services.
This news is based on a press release statement from Quhuo Limited.
InvestingPro Insights
As Quhuo Limited (NASDAQ: QH) faces challenges with Nasdaq's listing requirements, investors may find it useful to consider key financial metrics and expert analysis provided by InvestingPro. With a current market capitalization of just 5.87 million USD, the company is significantly below the Nasdaq's market value threshold. Despite this, Quhuo shows some potentially undervalued aspects in its financials. The company trades at a low Price / Book multiple of 0.08, as of the last twelve months ending Q4 2023, which might indicate that the stock is undervalued relative to the company's book value.
Additionally, Quhuo's P/E ratio stands at 3.06, adjusted for the same period, suggesting that the shares could be trading at a low earnings multiple compared to industry peers. This could be an attractive point for value investors seeking to capitalize on potential market mispricing. However, these financial indicators should be weighed against the company's performance and future prospects.
InvestingPro Tips highlight that Quhuo is a prominent player in the Commercial Services & Supplies industry and that its liquid assets exceed short-term obligations, which may provide some financial stability in uncertain times. On the flip side, the company has been identified as quickly burning through cash, which is a critical factor for investors to monitor, especially given the current situation with Nasdaq.
For investors looking for a deeper dive into Quhuo's financial health and stock performance, InvestingPro offers a range of additional tips. There are currently 17 InvestingPro Tips available for Quhuo Limited, which can be accessed at https://www.investing.com/pro/QH. To gain access to these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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