HONG KONG - Magic Empire Global Limited (NASDAQ: MEGL), a Hong Kong-based financial services provider, has received a notification from the Nasdaq Stock Market indicating that the company is currently not in compliance with the exchange's minimum bid price requirement.
The Nasdaq Listing Qualifications staff informed Magic Empire on February 28, 2024, that its share price had failed to meet the minimum $1 threshold over the previous 30 trading days.
This development does not immediately affect the listing of Magic Empire's ordinary shares. However, the company has been granted a compliance period of 180 calendar days, until August 26, 2024, to regain compliance with the Nasdaq's continued listing requirement.
If Magic Empire fails to meet the requirement within this period, it may be eligible for an additional 180 days to remedy the situation, provided it meets all other initial listing standards for the Nasdaq Capital Market, excluding the bid price requirement.
Magic Empire, which specializes in corporate finance advisory and underwriting services, including IPO sponsorship and compliance advisory, is currently exploring options to address the deficiency and intends to regain compliance within the stipulated timeframe.
While the company is committed to taking reasonable efforts to meet the Nasdaq's rule, it has stated that there can be no assurance of achieving compliance.
The notification from Nasdaq is based on the company's closing bid price from January 16, 2024, to February 27, 2024. In the event of non-compliance after the granted periods, Nasdaq may initiate delisting procedures for the company's securities.
Magic Empire Global Limited has not provided any specific strategy on how it plans to address the bid price deficiency. The company's future steps are likely to be closely watched by investors and market participants as it works towards maintaining its Nasdaq listing. This news is based on a press release statement issued by Magic Empire Global Limited.
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