Despite this notice, Nasdaq's communication does not immediately affect the listing status of the Company's common stock. The Company has been granted an initial compliance period of 180 calendar days, expiring on September 23, 2026, to regain compliance with the minimum bid price requirement. To achieve compliance, the closing bid price of the common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days prior to the compliance date.
Should the Company fail to regain compliance by the specified date, it may be eligible for an additional 180-day compliance period, provided it meets other continued listing requirements. This includes maintaining the market value of publicly held shares and all other initial listing standards, except for the bid price requirement. The Company may also consider implementing a reverse stock split if necessary to meet the compliance criteria. If the Company does not qualify for the second compliance period or fails to regain compliance during that time, Nasdaq will notify the Company of its determination to delist the common stock, allowing the Company an opportunity to appeal the decision to a Hearings Panel.
The Company intends to closely monitor the closing bid price of its common stock and may explore available options to regain compliance with the Nasdaq Listing Rules. This situation reflects a significant challenge for Datasea Inc. as it navigates the complexities of maintaining its listing status on a major stock exchange.
