BEIJING - U-BX Technology Ltd. (NASDAQ:UBXG), a company specializing in AI-driven services for the insurance industry, has been notified by Nasdaq of non-compliance with the exchange's listing requirements. The firm has until April 21, 2025, to meet the standards or face potential delisting.
The Listings Qualifications Department of The Nasdaq Stock Market issued two written notices to U-BX on October 21, 2024, indicating that the company's share price and market value have fallen below the required thresholds. For 31 consecutive business days, U-BX's shares closed below the $1.00 minimum bid price, and for 30 consecutive business days, the company's market value of listed securities remained under the $35 million mark.
Despite the warnings, these notifications currently do not affect the trading of U-BX's securities on the Nasdaq. The company has been given 180 calendar days to regain compliance with each of the two rules. If U-BX's share price reaches $1.00 or more for at least ten consecutive business days, or if its market value of listed securities hits $35 million or more for the same duration within this period, Nasdaq will confirm the company's compliance, and the issue will be considered resolved.
In the event that U-BX does not meet these requirements by the April 2025 deadline, it may qualify for an additional 180-day grace period. The company plans to actively monitor its share price and market value and is exploring options to regain compliance with Nasdaq's continued listing standards.
U-BX, headquartered in Beijing, provides a range of services to the insurance sector, including digital promotion, risk assessment through its "Magic Mirror" algorithm, and value-added benefits packages for insurance carriers.
This news article is based on a press release statement from U-BX Technology Ltd.
InvestingPro Insights
The recent Nasdaq non-compliance notification for U-BX Technology Ltd. (NASDAQ:UBXG) aligns with several key financial metrics and trends identified by InvestingPro.
According to InvestingPro data, UBXG's stock has experienced significant price declines across multiple timeframes. The 3-month price total return stands at -95.38%, while the 1-year return is -91.0%. These figures underscore the severity of the share price drop that led to the Nasdaq notification.
InvestingPro Tips highlight that UBXG "suffers from weak gross profit margins" and is "not profitable over the last twelve months." This is reflected in the company's financials, with a gross profit margin of just 1.75% for the last twelve months as of Q2 2024, and an operating income margin of -0.66% for the same period.
The company's revenue has also been declining, with a -25.7% revenue growth rate over the last twelve months. This downward trend in financial performance likely contributes to the market's negative sentiment, further pressuring the stock price and market value.
On a positive note, an InvestingPro Tip indicates that UBXG "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company works to address its listing compliance issues.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for UBXG, providing deeper insights into the company's financial health and market position.
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