SHANGHAI - FLJ Group Limited (NASDAQ:FLJ), an insurance agency and technology company, has been notified by the Nasdaq Stock Market LLC of a non-compliance issue regarding the minimum bid price for its shares. On April 3, 2024, Nasdaq informed the company that its American Depositary Shares (ADSs) had failed to meet the $1 minimum bid price as required by Nasdaq Listing Rule 5450(a)(1) for 30 consecutive business days.
Despite this deficiency, Nasdaq has granted FLJ Group a 180-day compliance period, ending on September 30, 2024, to address the issue. The company must maintain a closing bid price of at least $1 per ADS for ten consecutive business days within this timeframe to regain compliance. If FLJ Group achieves this, Nasdaq will issue a confirmation of compliance and close the matter.
FLJ Group is considering various options to resolve the minimum bid price deficiency, including a potential reverse share split of its outstanding ADSs. The Nasdaq notice does not currently affect the listing or trading of the company's ADSs on the market.
The Shanghai-based FLJ Group operates in the insurance industry within the People's Republic of China (PRC), providing a range of insurance products through its licensed agency and developing insurance technology, including a SaaS platform designed to link consumers with insurance services.
The information in this article is based on a press release statement from FLJ Group Limited.
InvestingPro Insights
FLJ Group Limited (NASDAQ:FLJ) has entered a challenging period as it seeks to navigate Nasdaq's minimum bid price requirements. Investors considering FLJ's future prospects should be aware of several key metrics and insights provided by InvestingPro. The company's market capitalization currently stands at a modest 3.17 million USD, reflecting investor sentiment and the company's market position.
Additionally, FLJ's stock price has seen significant volatility and declines, as evidenced by a staggering 97.77% drop in one-year price total return as of 2024. This trend aligns with the InvestingPro Tips that highlight the stock's poor performance over the last decade and its price falling significantly over the past year, three months, and six months. The company's stock price, at a previous close of 0.64 USD, is just 1.12% of its 52-week high, signaling a drastic downturn in investor confidence.
From a financial perspective, FLJ's profitability is a concern, with the company not being profitable over the last twelve months and an EBITDA of only 0.23 million USD. The InvestingPro Tips also indicate that FLJ suffers from weak gross profit margins and trades at a high EBITDA valuation multiple, which could be contributing factors to its current predicament.
Investors looking for a deeper analysis of FLJ Group's financial health and stock performance can find additional insights on InvestingPro. With 11 more InvestingPro Tips available, investors can gain a comprehensive understanding of the company's position. For those interested, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the full range of analytical tools and data that InvestingPro has to offer.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.