Treasure Global Inc (NASDAQ:TGL), a business services provider, has been notified by The Nasdaq Stock Market LLC of non-compliance with the exchange's minimum bid price requirement, the company disclosed in a recent SEC filing. The notice, dated November 20, 2024, indicated that Treasure Global's common stock had not maintained the minimum closing bid price of $1.00 per share over a 30-day period, as required by Nasdaq's Listing Rule 5550(a)(2).
The company, which is listed on The Nasdaq Capital Market, has been given an initial period of 180 calendar days, until May 19, 2025, to regain compliance. To achieve this, the closing bid price of Treasure Global's shares must be at least $1.00 for a minimum of ten consecutive trading days before the deadline.
Should Treasure Global fail to meet the requirement by May 19, 2025, it may qualify for an additional 180-day period to regain compliance, provided it meets all other initial listing standards for The Nasdaq Capital Market, except for the bid price. The company would also need to commit to resolving the bid price deficiency, potentially through a reverse stock split.
If compliance cannot be regained within the allotted time frames, Treasure Global's common stock risks delisting from the exchange. However, the company would have the right to appeal the decision to a Nasdaq hearings panel.
Currently, Treasure Global's stock continues to trade on The Nasdaq Capital Market under the ticker symbol "TGL." The company has stated it is evaluating options to return to compliance, but there is no guarantee that it will achieve the necessary bid price or satisfy other Nasdaq listing requirements in the future.
This news is based on a press release statement and reflects the latest developments regarding Treasure Global Inc's status with Nasdaq. The company's future actions and ability to maintain its listing status remain to be seen.
In other recent news, Treasure Global Inc. has been actively making strategic moves to strengthen its position in the competitive e-commerce market. The Delaware-incorporated company has entered into a significant $16 million service agreement with V Gallant SDN BHD to acquire generative AI solutions and AI digital human technology services. The company also announced a $6 million Share Purchase Agreement with Alumni Capital LP, a move that offers a flexible financing option that could support Treasure Global's growth initiatives and operational needs.
In addition, Treasure Global has entered into a partnership with software development firm Octagram Investment Limited. This collaboration focuses on integrating interactive mini-game modules into the ZCity platform, which is expected to boost user engagement and contribute to the company's growth.
Furthermore, Treasure Global completed an at-the-market equity offering program, raising approximately $2.99 million in collaboration with H.C. Wainwright & Co., LLC. These funds are anticipated to support the company's growth and corporate initiatives.
Amid these developments, Treasure Global has seen several changes within its board of directors, with new members joining and several others departing. Notably, Carlson Thow has assumed the role of CEO. These recent developments highlight Treasure Global's ongoing efforts to strengthen its corporate governance and adapt to changing market conditions.
InvestingPro Insights
Recent data from InvestingPro sheds light on Treasure Global Inc's (NASDAQ:TGL) current financial situation, providing context to its Nasdaq listing challenges. The company's market capitalization stands at a modest $2.85 million, reflecting its small-cap status. TGL's stock price has experienced significant declines, with a one-year price total return of -97.79% as of the latest data, underscoring the severity of its bid price non-compliance issue.
InvestingPro Tips indicate that TGL is trading at a low Price / Book multiple of 0.45, which could be of interest to value investors. However, this should be weighed against the company's financial health, as another tip suggests TGL is quickly burning through cash. This cash burn rate could complicate efforts to regain compliance or maintain operations without additional financing.
For investors considering TGL's potential recovery, it's worth noting that InvestingPro offers 16 additional tips that could provide further insights into the company's prospects. These tips, available with an InvestingPro subscription, could be valuable for assessing TGL's ability to navigate its current challenges and potentially regain Nasdaq compliance.
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