The9 Limited Announces Receipt of Nasdaq Notice of Deficiency
The9 Limited (NASDAQ: NCTY) (“The9” or the “Company”), an online game operator and developer in China, today announced that it has received a written notification from the Nasdaq Stock Market, Inc. (“Nasdaq”) dated February 22, 2017 indicating that the Company no longer meets the continued listing requirement of minimum Market Value of Publicly Held Shares (“MVPHS”) for the Nasdaq Global Market, as set forth in the Nasdaq Listing Rule 5450(b)(2)(C), because the market value of the Company’s publicly held American depositary shares (“ADS”), each representing one ordinary share of the Company, for the last 30 consecutive business days was below the minimum requirement of US$15,000,000. Pursuant to Nasdaq Listing Rule 5810(c)(3)(D), the Company has a compliance period of 180 calendar days (or until August 21, 2017) to regain compliance. If at any time during this compliance period the Company’s MVPHS closes at $15,000,000 or more for a minimum of ten consecutive business days, Nasdaq will notify the Company that it has achieved compliance with the MVPHS requirement and this matter will be closed. In the event the Company does not regain compliance with Rule 5450(b)(2)(C) prior to the expiration of the compliance period, the Company will receive written notification that its securities are subject to delisting from the NASDAQ Global Market.
The Company’s management is looking into various options available to regain compliance and maintain its continued listing on The NASDAQ Global Market, and is also considering other options, including a potential transfer of its listing of securities to the Nasdaq Capital Market. The Nasdaq Capital Market is a continuous trading market that operates in substantially the same manner as the Nasdaq Global Market where listed companies must meet certain financial requirements and comply with Nasdaq’s corporate governance requirements.
