ATA Creativity Global announced that it has regained compliance with Nasdaq's minimum bid price requirement, as confirmed by a letter from the Nasdaq Listing Qualifications Staff dated November 26, 2024. The company's American depositary shares (ADSs) maintained a closing bid price of $1.00 or greater from November 1 to November 25, 2024, resolving the previous non-compliance.
However, the company also received a separate notification from Nasdaq dated November 27, 2024, indicating non-compliance with the minimum stockholders' equity requirement. Nasdaq Listing Rule 5450(b)(1)(A) mandates a minimum of $10,000,000 in stockholders' equity for continued listing on the Nasdaq Global Market.
The company's Quarterly Report on Form 6-K for the period ended September 30, 2024, showed its shareholders' equity was below this $10,000,000 threshold. ATA Creativity Global has 45 calendar days, until January 13, 2025, to submit a plan to regain compliance with this new deficiency.
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