Addentax Group Corp (NASDAQ:ATXG), a company listed on the Nasdaq Capital Market, disclosed on Monday that it has received a notification of non-compliance from Nasdaq's Listing Qualifications Department. The notice, dated April 1, 2024, indicates that Addentax has not conducted its annual shareholder meeting within the 12 months following its fiscal year-end, as mandated by Nasdaq Listing Rule 5620(a).
The company is now required to submit a plan to regain compliance within the next 45 days. Should Nasdaq accept this plan, Addentax may be granted an extension of up to 180 days from the fiscal year-end, or until September 27, 2024, to meet the listing requirement. Addentax has expressed its intention to comply by scheduling the overdue annual meeting of stockholders as part of its plan.
While the compliance plan is under review, Addentax Group's securities will continue to be traded on the Nasdaq. The company has made this situation public by Nasdaq's Listing Rules, which mandate the disclosure of such correspondence. As of now, Addentax Group has not provided further details regarding the date of the annual meeting or the specifics of the compliance plan.
The information for this article is based on a recent SEC filing.
InvestingPro Insights
As Addentax Group Corp (NASDAQ:ATXG) navigates through its Nasdaq compliance challenges, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Addentax currently holds a market capitalization of $3.87 million USD, reflecting the scale of the company within the broader market landscape.
InvestingPro Tips highlight some critical financial concerns for Addentax, notably its significant debt burden and the potential difficulty in making interest payments. This financial leverage could impact the company's ability to swiftly address compliance issues and regain investor confidence. Additionally, the stock is trading at a low Price / Book multiple of 0.16, suggesting that the market may be undervaluing the company's net assets, which could be an area of interest for value investors.
Real-time metrics show that Addentax's revenue has experienced a notable decline, with a -45.86% change over the last twelve months as of Q3 2024, and a quarterly revenue growth rate of -30.8% for Q3 2024. This contraction in revenue could be a contributing factor to the company's current compliance predicament. Moreover, the stock's performance has been lackluster, with a one-year price total return of -91.18%, indicating a significant drop in shareholder value over the period.
For investors seeking more in-depth analysis and additional insights, InvestingPro offers a wealth of tips on Addentax Group Corp, with 15 more available at InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to valuable metrics that can inform investment decisions during this critical time for the company.
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