SHENZHEN, China - Fangdd Network Group Ltd. (NASDAQ:DUO), a China-based property technology company, has been notified by Nasdaq that it is not currently meeting the minimum bid price requirement. The company's share price, currently trading at $0.72, has closed below $1 for 30 consecutive business days from November 11 to December 23, 2024. According to InvestingPro data, the stock has declined approximately 77% over the past six months, trading well below its 52-week high of $4.67.
According to the notification received on December 24, 2024, Fangdd has a 180-day period until June 23, 2025, to regain compliance with Nasdaq's minimum bid price rule. To achieve compliance, the closing bid price of Fangdd's Class A ordinary shares must reach at least $1 for a minimum of ten consecutive business days within this timeframe. InvestingPro analysis indicates that the company is currently overvalued, with a concerning Financial Health Score of 1.37 (labeled as WEAK).
If Fangdd fails to meet the requirement within the allotted period, it may be eligible for an additional 180-day compliance period, provided it meets all other initial listing standards for The Nasdaq Capital Market, except for the bid price requirement. The company would also need to notify Nasdaq of its intention to remedy the deficiency during the second compliance period.
The current notification from Nasdaq does not affect the listing or trading of Fangdd's Class A ordinary shares on the market. The company has stated its intention to monitor its share price closely and is exploring options to address the deficiency and regain compliance with the Nasdaq Listing Rule.
Fangdd, specializing in digital real estate transaction services, utilizes technologies such as mobile internet, cloud computing, big data, and artificial intelligence to transform the real estate industry. The company reported revenue of $37.35 million with a 6.61% growth rate, maintaining a current ratio of 1.17. Despite the current challenge with Nasdaq's listing requirements, the company has not provided any specific strategy or plan for increasing its share price. For deeper insights into Fangdd's financial health and growth prospects, InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis.
This announcement, made in accordance with Nasdaq Listing Rule 5810(b), is intended to keep investors informed of the company's receipt of the deficiency notification. The information in this article is based on a press release statement from Fangdd Network Group Ltd.
In other recent news, Fangdd Network Group Ltd., a prominent real estate technology company, has been active in financial maneuvers and compliance measures. The company has recently secured $4.5 million through a registered direct offering, selling securities directly to selected investors. This process of raising funds is expected to fuel the continued development of Fangdd's technology and services in the real estate sector.
Fangdd has also regained compliance with Nasdaq's minimum bid price requirement, an important milestone for the company. Furthermore, the company has launched several direct offerings of Class A ordinary shares and pre-funded warrants, with funds raised to be allocated for general corporate purposes.
In terms of financial performance, Fangdd released its unaudited financial results for the first half of 2024. Although specific revenue and profit figures were not disclosed, the report provides insight into the company's mid-year performance.
These recent developments reflect Fangdd's ongoing activities and commitment to transparency, as it continues to comply with SEC regulations. The company's financial health and strategic direction remain of interest to investors tracking the real estate technology market and Chinese companies listed on U.S. exchanges.
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