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ZW Data faces Nasdaq delisting over delayed annual report

EditorNatashya Angelica
Published 04/20/2024, 04:22 AM
CNET
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BEIJING - ZW Data Action Technologies Inc. (NASDAQ: CNET), a provider of online advertising, precision marketing, and data analytics services, has been notified by the Nasdaq Stock Market of non-compliance with listing rules due to a delay in filing its annual report.

The company missed the deadline for its Form 10-K for the fiscal year ending December 31, 2023, which is required under Nasdaq Listing Rule 5250(c)(1).

The notice from Nasdaq does not immediately affect the listing of ZW Data's common stock. The company has until June 17, 2024, to submit its annual report or a plan to regain compliance. If the plan is accepted, Nasdaq may grant an extension of up to 180 days from the original due date for the company to comply, which would be until October 14, 2024.

ZW Data has communicated its intention to file the overdue 2023 Form 10-K by May 31, 2024. However, failure to meet the extended deadlines could lead to the delisting of the company's stock from the Nasdaq exchange.

Established in 2003 and headquartered in Beijing, ZW Data specializes in providing enterprise clients with integrated services that include online advertising, precision marketing, data analytics, and the development of blockchain-enabled applications. The company's proprietary database and algorithms aim to deliver customized solutions for small and medium-sized businesses in China.

The announcement of the notice of non-compliance is a regulatory requirement under Nasdaq Listing Rule 5810(b), which mandates timely disclosure of such notifications. ZW Data's management is working diligently to complete and file the necessary financial documentation to regain compliance with Nasdaq's listing requirements.

This article is based on a press release statement and aims to present the facts surrounding ZW Data's current regulatory situation without speculation on future outcomes or the potential impact on the company's market position.

InvestingPro Insights

As ZW Data Action Technologies Inc. (NASDAQ: CNET) navigates through its regulatory challenges, investors and stakeholders are closely monitoring the company's financial health and market performance. Here are some key insights based on real-time data from InvestingPro and InvestingPro Tips:

InvestingPro Data highlights that ZW Data has a market capitalization of 7.06 million USD, indicating a relatively small size within the market. Despite a challenging period, the company has shown a strong return over the last three months, with a 23.46% price total return. Still, the company's revenue has seen a decline of 13.28% over the last twelve months as of Q1 2023, which is a concern for revenue-based growth prospects.

InvestingPro Tips suggest that ZW Data trades with high price volatility, which could be a factor for investors with a lower risk tolerance. The company also operates with a moderate level of debt, which could impact its financial flexibility in the short to medium term. Moreover, it is notable that ZW Data does not pay a dividend to shareholders, which may influence the investment decisions of those seeking regular income.

For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CNET. These tips could offer further insights into ZW Data's financials and market performance. Interested readers can also take advantage of an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

It is important for investors to consider these metrics and tips in the context of the company's current regulatory situation and its efforts to regain compliance with Nasdaq's listing requirements. The data provided by InvestingPro offers a snapshot of the company's performance and financial health, which could be valuable in assessing the potential risks and opportunities associated with ZW Data.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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