Oriental Rise Holdings Tackles Nasdaq Compliance Challenge Ahead
Oriental Rise Holdings Faces Nasdaq Compliance Challenge
Oriental Rise Holdings Limited (NASDAQ: ORIS), a prominent supplier of tea products in mainland China, is addressing an important notification from The Nasdaq Stock Market. The company, well-known for its offerings of refined white and black tea, recently learned that it has not met the requirement regarding shares’ minimum bid-price under Nasdaq Listing Rule 5550(a)(2).
Understanding the Minimum Bid-Price Requirement
On June 30, a notification was sent to Oriental Rise indicating that its ordinary shares had fallen below the crucial threshold of US $1.00 for over 30 consecutive business days, specifically from May 15 to June 27. This notification, which does not immediately affect their listing, obliges the company to take steps to comply with Nasdaq's requirements.
Compliance Period and Next Steps
Oriental Rise now finds itself in a 180-calendar-day compliance period, which will span until around the end of the year. The company must ensure that the closing bid price of its shares reaches at least US $1.00 for a minimum of 10 consecutive business days. If this is achieved, Nasdaq will confirm compliance, allowing the company to move forward without interruption.
Potential Grace Period
Should the company fail to comply within the initial period, it may be eligible for an additional 180-day grace period. This extension is contingent upon maintaining compliance with all other necessary listing criteria, excluding the bid-price requirement, thereby providing a window for recovery. A potential strategy might include a reverse stock split aimed at consolidating the shares and raising the share price.
Commitment to Shareholders
Throughout this entire process, Oriental Rise is committed to looking after the interests of its shareholders. The company is continuously assessing the market trends and shares’ performance, aiming to recover and uphold its esteemed position on Nasdaq. With a robust approach to monitoring market conditions, Oriental Rise demonstrates resilience in addressing its capital stock issues.
Overview of Company Operations
Oriental Rise is not just focused on compliance; it remains dedicated to its core business—providing high-quality tea products. The company operates tea gardens in Fujian Province and serves both wholesale clients and retail customers. Vertical integration plays a key role in its operations, overseeing the cultivation and processing of its tea products to maintain superior quality.
Future Prospects
Staying ahead in the competitive tea market requires constant innovation and adaptation. As Oriental Rise navigates this compliance hurdle, it continues to explore novel strategies to enhance its product offerings and expand its market presence. The dedication to delivering shareholder value remains paramount, and the company is determined to uphold its listing on Nasdaq.
Frequently Asked Questions
What is the recent Nasdaq notification about Oriental Rise?
The notification indicates that Oriental Rise is not in compliance with the minimum bid-price requirement, as its shares had closed below $1.00 for 30 consecutive business days.
What actions can Oriental Rise take to regain compliance?
Oriental Rise has a 180-day period to increase the share price to above $1.00 for 10 consecutive days. They may also consider a reverse stock split if necessary.
How does this affect Oriental Rise's stock listing?
The notice does not immediately affect the stock's listing on Nasdaq, and trading will continue as normal while the company works on compliance.
What are the company's key products?
Oriental Rise focuses on white and black tea products, catering to both wholesale distributors and retail customers.
Who can investors contact for more information?
Investors can reach out to the Investor Relations Department through email at ir@mdhtea.cn for any inquiries related to the company.
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