AnPac Bio-Medical Science Co Ltd (NASDAQ: ANPC) announced that the Nasdaq Stock Department LLC’s Listing Qualifications Department sent a staff determination letter to notify it of the staff’s intent to delist its securities.
AnPac failed to comply with minimum requirements
The notification is because AnPac hasn’t managed to comply with Rules on listing, which require companies to have a minimum market value of $50 million. There are other conditions the company failed to reach, such as having a minimum of $10 million in stockholders value, $50 million in assets, and a revenue of $50 million.
Nasdaq will suspend the trading of AnPac’s shares in the beginning of April unless the company attempts to appeal the letter. Moreover, the SEC will delist the company from the Nasdaq listing after Nasdaq files a Form 25-NSE.
Fortunately, the company could apply for Nasdaq Capital Market registration of it can meet the necessary conditions. AnPac has stated that it would submit an appeal to have more time to transition to Nasdaq’s Capital Market, where it is applying.
Nasdaq first sent the company notification to warn it that it no longer met the criteria to be listed in Nasdaq Stock Market on September 2021. The message stated that AnPac hadn’t met the minimum requirement for thirty days before the notification. Therefore it has 180 days to attain compliance. AnPac failed to comply by the set date.
Unfortunately, AnPac has a similar issue with the Nasdaq Global Market, which requires its publicly held shares to have a minimum of $15 million in market value. AnPac has to remain in compliance by June 18.
AnPac will appeal the letter
AnPac hopes to go before a Hearings panel to request time so that its securities will be traded while it asks for a listing on Nasdaq Capital Market. The company will also have to detail a plan for meeting the minimum requirement for Nasdaq Capital Market as it requests time to meet these goals.
AnPac believes it can develop a good plan for how it intends to meet minimum requirements. Despite its efforts, the company isn’t sure that the hearing panel would agree to suspend delisting.
