U Power Limited Announces Receipt Of Nasdaq Notification Regarding Minimum Bid Price Deficiency
Portfolio Pulse from Benzinga Newsdesk
U Power Limited (NASDAQ:UCAR), a provider of vehicle sourcing services and aspiring EV battery power solution provider in China, has received a notification from Nasdaq for not meeting the minimum bid price requirement of $1.00 per share over 30 consecutive business days. The company has until July 17, 2024, to regain compliance, which can be achieved if its shares maintain a closing bid price of at least $1.00 for 10 consecutive business days. The notification does not currently affect U Power's listing on the Nasdaq Capital Market, and the company's operations remain unaffected. U Power is considering options to address the issue, including a potential reverse share split.
January 23, 2024 | 9:13 pm
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U Power Limited has been notified by Nasdaq of non-compliance with the minimum bid price rule. The company has a 180-day period to regain compliance and is considering measures such as a reverse share split.
The notification of non-compliance with Nasdaq's minimum bid price requirement is a negative signal to the market and may lead to a decrease in investor confidence. If the company fails to regain compliance, it risks being delisted, which typically has a negative impact on stock price. The consideration of a reverse share split indicates the company is taking steps to address the issue, but such actions can also be perceived negatively by the market as they often dilute shareholder value.
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