After experiencing a merger, the stock price of Education Technology has continued to rise. Recently, the company announced that it has regained compliance with the minimum stock price requirements for continuing to be listed on NASDAQ.
On August 3rd last year, Education Technology received a notice from NASDAQ stating that its American Depositary Shares (ADS) had not reached a closing price of $1.00 or more for 30 consecutive trading days, and therefore did not meet the minimum stock price requirement. According to the notice, if at any time during the 180 day compliance period, the closing price of the company's securities remains above $1.00 for at least ten consecutive working days, Nasdaq will provide written compliance confirmation to the company, and this matter will be closed.
In order to comply with the minimum stock price requirements again, Education Technology announced that it will merge shares starting from December 18, 2023, with 2 shares for every 10 shares.
According to the compliance notice, from December 18, 2023 to January 3, 2024, the closing price of Education Technology ADS was $1.00 per share or higher for 11 consecutive working days, and the company has once again met the minimum stock price requirement. Education Technology announced on January 5th that the company has regained compliance with the minimum stock price requirement for continued listing on NASDAQ.
Affected by the re compliance, on January 8th, the US stock market closed at $2.35 per share, up 19.89%.
Previously, Education Technology disclosed in its performance report for the third quarter of 2023 that the company's net revenue for the third quarter was 45.1 million yuan (6.2 million US dollars), while the net revenue for the third quarter of 2022 was 124.6 million yuan, a year-on-year decrease of 63.8%. The net loss for the third quarter of 2023 was RMB 72.9 million (USD 10 million), while the net loss for the third quarter of 2022 was RMB 23.5 million.
Regarding the decline in performance, Education Technology stated that due to the concentration of resources on SaaS business, the net income from other education services decreased, while the SaaS billing model recognized revenue at a slower rate over a longer period of time.