ITEM 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing
On June 24, 2021, China XD Plastic Company Limited (the "Company") received a
letter (the "Nasdaq Letter") from the Listing Qualifications Department of the
Nasdaq Stock Market ("Nasdaq") notifying the Company that it was no longer in
compliance with the minimum bid price requirement as set forth in Nasdaq Listing
Rule 5450(a)(1) (the "Minimum Bid Price Requirement").
Nasdaq Listing Rule 5450(a)(1) requires listed securities to maintain a minimum
bid price of $1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides
that a failure to meet the Minimum Bid Price Requirement exists if the
deficiency continues for a period of 30 consecutive business days. Based on the
closing bid price of the Company's common stock for the 30 consecutive business
days prior to the date of the Nasdaq Letter, the Company no longer meets the
Minimum Bid Price Requirement. The Nasdaq Letter has no immediate effect on the
listing or trading of the Company's common stock on the Nasdaq Global Market
and, at this time, the common stock will continue to trade on the Nasdaq Global
Market under the symbol "CXDC."
The Nasdaq Letter provides that the Company has 180 calendar days, or until
December 21, 2021 (the "Compliance Period"), to regain compliance with Nasdaq
Listing Rule 5450(a)(1). To regain compliance, the Company's common stock must
have a closing bid price of at least $1.00 per share for a minimum of 10
consecutive business days. If the Company does not regain compliance with the
Minimum Bid Price Requirement by the end of the Compliance Period, then under
Nasdaq Listing Rule 5810(c)(3)(A)(i), the Company may transfer to The Nasdaq
Capital Market, provided that it meets the applicable market value of publicly
held shares requirement for continued listing as well as all other standards for
initial listing of its common stock on the Nasdaq Capital Market (other than the
Minimum Bid Price Requirement) and notifies Nasdaq of its intention to cure the
deficiency during a second compliance period (by effecting a reverse stock split
if necessary). Following a transfer to The Nasdaq Capital Market, under Nasdaq
Listing Rule 5810(c)(3)(A)(ii), the Company may be afforded an additional
180-days to regain compliance with the Minimum Bid Price Requirement.
If the Company does not regain compliance with the Minimum Bid Price Requirement
by the end of the Compliance Period (or the Compliance Period as may be
extended) the Company's common stock will be subject to delisting.
The Company intends to monitor the closing bid price of its common stock and
may, if appropriate, consider implementing available options, including, but not
limited to, implementing a reverse share split of its outstanding common stock,
to regain compliance with the Minimum Bid Price Requirement under the Nasdaq
Listing Rules.
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