J-Long Group Limited Responds to Nasdaq Delisting Notice

J-Long Group Limited Faces Nasdaq Compliance Challenge

J-Long Group Limited (Nasdaq: JL), a well-established distributor of garment trims, has recently received a crucial letter from the Nasdaq Listing Qualifications Department regarding compliance issues related to its share price. Over 30 consecutive business days, the company’s shares have closed below the $1 threshold, a situation that violates Listing Rule 5550(a)(2).

Understanding the Determination Letter

The Determination Letter emphasized that J-Long Group did not regain compliance with Nasdaq's regulations within the stipulated period previously mentioned. As a result, the company could face delisting if it does not appeal the decision by a specific date. The letter clearly outlines the timeline, giving the company until a designated date to either comply or face consequences, including a potential delisting of its shares.

Delisting Implications

The repercussions of this notice could significantly impact the ordinary shares of J-Long Group. The letter indicated that if the company does not appeal by the end of a specified period, its shares would be suspended from trading shortly after.

Plans to Retain Listing

In response to this challenge, J-Long Group Limited is working diligently to prepare a solid appeal. A hearing request for an oral presentation is already in the works, which would require the company to pay a fee before the appeal deadline. The potential for a reverse stock split is also being considered to regain compliance.

Company's Commitment to Shareholders

Mr. Danny Tze Ching Wong, the Chairman of the Board, reassured shareholders of the company’s commitment to uphold its Nasdaq listing. He acknowledged the value that a Nasdaq listing brings in terms of liquidity and efficient pricing.

Expertise in Garment Trims

J-Long Group is recognized for its broad expertise in the distribution of both reflective and non-reflective garment trims. Their product lineup includes heat transfers, woven labels, and various kinds of tapes and badges, showcasing their capability to cater to diverse customer needs.

Future Growth Strategies

As the company navigates these challenges, it is also focusing on improving its performance and compliance. J-Long Group intends to provide Nasdaq with a well-structured plan demonstrating its steps to regain its listing status.

Engaging with the Market

Continued engagement with shareholders and industry stakeholders is vital for J-Long Group during this period. The company plans to keep its stakeholders updated on progress regarding compliance efforts and any strategic decisions that may impact its operations.

Conclusion

With ongoing evaluation and commitment to compliance, J-Long Group Limited is determined to implement effective strategies to maintain its listing on the Nasdaq. The company places a high value on its stakeholders and is focused on transparency and accountability throughout this process.

Frequently Asked Questions

What led to the Nasdaq Determination Letter?

J-Long Group's shares had been trading below $1 for over 30 consecutive business days, which is a violation of Nasdaq's Listing Rule 5550(a)(2).

What are the potential consequences of the compliance issue?

If the company does not appeal the decision, its shares could be delisted from the Nasdaq, impacting liquidity and shareholder value.

What steps is J-Long Group taking to address this issue?

The company plans to appeal the determination, potentially including a reverse stock split to regain compliance.

Who is the Chairman of J-Long Group?

Mr. Danny Tze Ching Wong serves as the Chairman of the Board of J-Long Group Limited.

What is J-Long Group's primary business focus?

J-Long Group Limited specializes in distributing reflective and non-reflective garment trims, including a wide array of products like heat transfers and woven labels.

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