BEIJING - TCTM Kids IT Education Inc. (NASDAQ:TCTM), a prominent provider of IT-centric STEM education in China with a market capitalization of $7.29 million, disclosed on Monday that it has received a notification from the Nasdaq Stock Market LLC citing non-compliance with the minimum bid price requirement. The stock, currently trading at $0.71, has seen significant volatility, having declined over 40% in the past six months according to InvestingPro data. The notice, dated January 3, 2025, states that TCTM's American depositary shares (ADSs) have been trading below the $1.00 minimum bid price for 30 consecutive days, which is a breach of the Nasdaq Capital Market's Listing Rule 5550(a)(2).
The company has been granted a 180-day grace period, ending on July 2, 2025, to address this shortfall. To regain compliance, TCTM's closing bid price must reach or exceed $1.00 per share for at least ten consecutive business days during this period. InvestingPro analysis indicates the company faces broader financial challenges, with a weak Financial Health Score of 1.49 out of 5 and significant debt obligations. Subscribers can access 14 additional ProTips about TCTM's financial position. If TCTM fails to meet this requirement by the deadline, it may qualify for a second 180-day period to achieve compliance, provided it meets all other initial listing standards, except for the minimum bid price. TCTM might consider a reverse stock split among other strategies to rectify the deficiency within the additional timeframe.
This development does not impact TCTM's business operations, and the company has communicated its intent to take appropriate measures to regain compliance with Nasdaq's listing requirements.
TCTM specializes in delivering IT-focused supplementary STEM education to students aged three to eighteen through a blend of live distance learning, classroom-based tutoring, and online modules. The company generates annual revenue of $189.99 million, though analysts tracked by InvestingPro expect significant sales growth this year despite recent challenges. The company's educational programs, which include computer coding and robotics programming, aim to foster logical thinking and learning abilities in children while helping them explore their interests and potential.
This information is based on a press release statement from TCTM Kids IT Education Inc.
In other recent news, TCTM Kids IT Education Inc. announced significant changes to its senior management team. Ms. Ying Sun has transitioned from her role due to health reasons, taking up the mantle as the president for international business. In her stead, Mr. Xiaolan Tang, previously the senior vice president, has been appointed as the new CEO.
Mr. Tang, who rejoined TCTM in 2020 as vice president of sales and marketing, brings over two decades of industry experience to his new position. His leadership within TCTM and his entrepreneurial ventures, including co-founding Dajiangtai.com and VIPCODE, are expected to provide a robust foundation for his new role.
Chairman of TCTM's board, Mr. Shaoyun Han, expressed gratitude to Ms. Sun for her contributions and anticipates her continued impact in the new role. He also conveyed confidence in Mr. Tang's ability to lead the company forward, highlighting his leadership skills and comprehensive understanding of the business. These are among the recent developments within the company.
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