Future FinTech Group Inc., a company engages in blockchain based e-commerce and fruit juice business, announced that on December 17, 2019, the Company received a notification letter from NASDAQ Listing Qualification Staff (“Staff”) stating that Staff has determined to grant the Company an extension of time to regain compliance with the NASDAQ Listing Rule (the “Rule”).
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As previously disclosed, on September 4, 2019, the Company received written notice from the Staff stating that the Company did not meet the requirement of maintaining a minimum of $2,500,000 in stockholders’ equity for continued listing on the NASDAQ Capital Market, as set forth in NASDAQ Listing Rule 5550(b)(1), the Company also did not meet the alternative of market value of listed securities of $35 million under NASDAQ Listing Rule 5550(b)(2) or net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the last three most recently completed fiscal years under NASDAQ Listing Rule 5550(b)(3), and the Company is no longer in compliance with the NASDAQ Listing Rules. The NASDAQ notification letter provided the Company until September 18, 2019 to submit a plan to regain compliance. If the plan is accepted, NASDAQ can grant the Company an extension up to 180 calendar days from the date of NASDAQ letter to demonstrate compliance.
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The Company submitted its plan of compliance on September 18, 2019 and supplemental documents to the plan of compliance on November 11 and December 12, 2019. As detailed in the submission, the Company signed a share transfer agreement, to sell its fruit juice business and related subsidiaries of HeDeTang Holdings (HK) Ltd. (“HeDeTang HK”) and will submit the transaction for shareholders approval at a special shareholders meeting. The proposed sale is expected to divest approximately $148 million in asset impairment charges, which contributed to its stockholders equity’ deficit of $86.7 million, as of December 31, 2018.
Based on the review of the materials submitted by the Company, Staff has determined to grant the Company an extension until February 28, 2020 to regain compliance with the Rule.
