Addentax Group Corp. (NASDAQ:ATXG), a company specializing in mailing, reproduction, commercial art, and photography services, has been given an additional 180-day period, until April 21, 2025, to meet Nasdaq's minimum bid price requirement and avoid delisting. The company's stock has been trading below $1.00 for more than 30 consecutive business days, failing to satisfy the Nasdaq Listing Rule 5550(a)(2).
The initial notice from Nasdaq, dated April 24, 2024, granted Addentax Group Corp. a 180-day compliance period that ended on October 21, 2024. During this time, the company was unable to elevate its common stock's bid price to the required $1.00 minimum for at least 10 consecutive business days. Following this, the company sought an extension by submitting a written request on October 21, 2024.
Nasdaq's decision to allow the extension was based on Addentax's compliance with all other initial listing standards for the Nasdaq Capital Market, except for the Minimum Bid Price Rule. The company also indicated its willingness to implement a reverse stock split if necessary to cure the deficiency.
The company has already secured stockholder approval for a potential reverse stock split to regain compliance with the Minimum Bid Price Rule. However, there is no certainty that Addentax will be able to maintain compliance once it is achieved or meet other Nasdaq listing requirements in the future.
If the company's common stock reaches a closing bid price of at least $1 per share for a minimum of 10 consecutive business days during the second 180-day period, Nasdaq will confirm that Addentax has regained compliance. Failure to meet the conditions by the April 21, 2025 deadline may result in a written notification of delisting, at which point Addentax would have the opportunity to appeal the decision to a hearings panel.
InvestingPro Insights
Recent data from InvestingPro sheds light on Addentax Group Corp.'s (NASDAQ:ATXG) financial situation and market performance, providing context to the company's struggle to meet Nasdaq's minimum bid price requirement.
As of the latest available data, ATXG's market capitalization stands at a mere $3.93 million, reflecting its small-cap status. The company's Price to Book ratio is notably low at 0.16, indicating that the stock is trading well below its book value. This aligns with an InvestingPro Tip that highlights ATXG as "trading at a low Price / Book multiple."
The company's financial health appears precarious, with an InvestingPro Tip noting that ATXG is "not profitable over the last twelve months." This is further evidenced by the negative P/E ratio of -1.22 for the last twelve months as of Q1 2025. Additionally, the company's revenue for the same period was $4.95 million, with a concerning revenue growth rate of -25.08%.
ATXG's stock performance has been volatile, as indicated by another InvestingPro Tip stating that the "stock generally trades with high price volatility." This volatility is reflected in the stock's price movements, with a 25.6% return over the last month contrasting sharply with a -58.06% return over the past year.
These insights from InvestingPro, which offers 11 additional tips for ATXG, provide valuable context to the company's current situation and its efforts to maintain Nasdaq listing compliance.
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