Nova Lifestyle Inc.
07/01/2024 | Press release | Distributed by Public on 07/01/2024 14:26
Material Event Form 8 K
| Item 8.01 | Other Events. |
On June 27, 2024, the Company received a notification letter from NASDAQ Listing Qualification Staff ("Staff") stating that Staff has determined to grant the Company an extension of time to regain compliance with the NASDAQ Listing Rule (the "Rule").
As previously disclosed, on April 18, 2024, the Company received written notice from the NASDAQ Stock Market ("NASDAQ") stating that the Company does not meet the requirement of maintaining a minimum of $2,500,000 in stockholders' equity for continued listing on the NASDAQ Capital Market, as set forth in NASDAQ Listing Rule 5550(b)(1), the Company also does not meet the alternative of market value of listed securities of $35 million under NASDAQ Listing Rule 5550(b)(2) or net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years under NASDAQ Listing Rule 5550(b)(3), and the Company is no longer in compliance with the NASDAQ Listing Rules. The NASDAQ notification letter provided the Company until June 6, 2024 to submit a plan to regain compliance. If the plan is accepted, NASDAQ can grant the Company an extension up to 180 calendar days from the date of NASDAQ letter to demonstrate compliance.The Company submitted its plan of compliance on May 28, 2024 and a supplemental letter to the plan of compliance on June 20, 2024. Based on the review of the letters submitted by the Company, Staff has determined to grant the Company an extension until October 14, 2024 to regain compliance with the Rule and the Company must complete its initiatives and provide evidences for the compliance with the Rule as required by Nasdaq.
The Company intends to fully comply with the exception granted by the Staff and to regain the compliance on or before October 14, 2024.