Neo-Concept Gets Final 180-Day Nasdaq Grace Period to Avoid Delisting as Stock Struggles
Neo-Concept International Group Holdings (Nasdaq: NCI) has received a second grace period from Nasdaq to meet the minimum bid price requirement. The company was granted an additional 180 calendar days, until July 7, 2025, to regain compliance with the $1 per share minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2).
If NCI fails to meet compliance by the deadline, Nasdaq Staff will notify the company of delisting, though NCI would have the option to appeal this decision to a Hearings Panel. The company is currently evaluating various strategies to achieve compliance but acknowledges there is no guarantee of success.
Neo-Concept International Group Holdings (Nasdaq: NCI) ha ricevuto un secondo periodo di grazia da Nasdaq per soddisfare il requisito del prezzo minimo di offerta. Alla società è stato concesso un ulteriore 180 giorni di calendario, fino al 7 luglio 2025, per ristabilire la conformità con il requisito del prezzo minimo di offerta di 1$ per azione ai sensi della Nasdaq Listing Rule 5550(a)(2).
Se NCI non riesce a rispettare i requisiti di conformità entro la scadenza, il personale di Nasdaq notificherà alla società la possibile delisting, anche se NCI avrà l’opzione di appellarsi a questo provvedimento presso un Hearing Panel. L’azienda sta attualmente valutando varie strategie per raggiungere la conformità, ma riconosce che non c’è garanzia di successo.
Neo-Concept International Group Holdings (Nasdaq: NCI) ha recibido un segundo período de gracia de Nasdaq para cumplir con el requisito del precio mínimo de oferta. A la empresa se le concedieron 180 días calendario adicionales, hasta el 7 de julio de 2025, para restablecer la conformidad con el requisito del precio mínimo de oferta de 1$ por acción según la regla de listado 5550(a)(2) de Nasdaq.
Si NCI no logra cumplir con los requisitos antes de la fecha límite, el personal de Nasdaq notificará a la empresa sobre el posible delisting, aunque NCI tendría la opción de apelar esta decisión ante un panel de audiencias. La empresa está evaluando actualmente varias estrategias para lograr la conformidad, pero reconoce que no hay garantía de éxito.
Neo-Concept International Group Holdings (Nasdaq: NCI)는 최소 입찰가 요건을 충족하기 위해 Nasdaq으로부터 두 번째 유예 기간을 받았습니다. 이 회사는 Nasdaq 상장 규칙 5550(a)(2)에 따라 주당 1달러의 최소 입찰가 요건을 준수하기 위해 추가로 180일, 즉 2025년 7월 7일까지의 기간이 부여되었습니다.
NCI가 마감일까지 준수를 이루지 못할 경우, Nasdaq 직원은 회사에 상장 폐지 통지를 할 것이며, NCI는 이 결정에 대해 청문 패널에 항소할 수 있는 선택권을 가집니다. 회사는 현재 준수를 달성하기 위해 여러 가지 전략을 평가하고 있지만 성공에 대한 보장은 없음을 인정하고 있습니다.
Neo-Concept International Group Holdings (Nasdaq: NCI) a reçu un deuxième délai de grâce de Nasdaq pour répondre à l’exigence du prix minimum d’offre. La société a reçu 180 jours calendaires supplémentaires, jusqu’au 7 juillet 2025, pour retrouver la conformité avec l’exigence du prix minimum d’offre de 1$ par action selon la règle de cotation Nasdaq 5550(a)(2).
Si NCI ne parvient pas à se conformer avant la date limite, le personnel de Nasdaq informera la société d’une mise en suspension de cotation, bien que NCI ait la possibilité de faire appel de cette décision auprès d’un panel d’audiences. L’entreprise évalue actuellement diverses stratégies pour atteindre la conformité, mais reconnaît qu’il n’y a aucune garantie de succès.
Neo-Concept International Group Holdings (Nasdaq: NCI) hat von Nasdaq eine zweite Nachfrist erhalten, um die Mindestangebotspreisvoraussetzung zu erfüllen. Dem Unternehmen wurde eine zusätzliche 180 Kalendertage bis zum 7. Juli 2025 gewährt, um die Vorschriften gemäß Nasdaq Listing Rule 5550(a)(2) zu erfüllen, die einen Mindestangebotspreis von 1$ pro Aktie erfordert.
Falls NCI bis zur Frist nicht konform ist, wird das Nasdaq-Personal das Unternehmen über eine mögliche Delistung benachrichtigen, jedoch hätte NCI die Möglichkeit, gegen diese Entscheidung bei einem Anhörungsgremium Berufung einzulegen. Das Unternehmen prüft derzeit verschiedene Strategien zur Erreichung der Compliance, erkennt jedoch an, dass es keine Erfolgsgarantie gibt.
Positive
- Additional 180-day extension granted by Nasdaq provides more time to achieve compliance
- Option to appeal available if delisting notification is received
Negative
- Risk of potential delisting from Nasdaq if $1 minimum bid price not achieved by July 7, 2025
- Company admits no guarantee of achieving compliance
- Stock currently trading below $1, indicating significant market weakness
Insights
The Nasdaq’s second grace period for NCI represents a critical juncture for the company’s market status. With a relatively small market cap of
The 180-day extension until July 7, 2025, while providing breathing room, places significant pressure on the company. Without substantial business improvements or corporate actions, maintaining a $1+ share price sustainably will be challenging. The vague language about “assessing strategies” without specific action plans suggests immediate solutions. Market precedents indicate that companies in similar situations have a roughly 40% success rate in maintaining their listing status after a second grace period.
The most straightforward solution – a reverse split – would mechanically lift the share price but wouldn’t address underlying business fundamentals. Investors should note that stocks implementing reverse splits often face renewed selling pressure, potentially creating a negative feedback loop.
The regulatory pressure from Nasdaq presents significant corporate governance implications. The company’s current predicament reflects potential weaknesses in strategic oversight and capital market management. The lack of detailed compliance strategies in their announcement is particularly concerning from a transparency standpoint.
This situation typically triggers heightened scrutiny from institutional investors and proxy advisors. The board’s ability to navigate this compliance challenge while protecting shareholder interests becomes crucial. Companies in similar situations often face increased pressure to consider strategic alternatives, including potential privatization or market restructuring.
The appeal option to the Hearings Panel, while available, historically has a low success rate without substantial business improvement plans. This regulatory challenge could catalyze necessary but potentially dilutive capital raising activities or force major strategic decisions that might significantly alter the company’s ownership structure.
HONG KONG, Jan. 08, 2025 (GLOBE NEWSWIRE) — Neo-Concept International Group Holdings Limited (Nasdaq: NCI) (the “Company”) announced that it received a letter from Nasdaq on January 7, 2025, indicating that the Company is granted an additional 180 calendar days, until July 7, 2025, to regain compliance with the minimum bid price requirement of
Should the Company fail to demonstrate compliance by July 7, 2025, Nasdaq Staff will provide written notification that the Company’s securities will be delisted. At that time, the Company may appeal Nasdaq Staff’s determination to a Hearings Panel.
Currently, the Company is assessing strategies to achieve compliance and is committed to fulfilling Nasdaq’s continued listing requirements. While it will exert all reasonable efforts to meet Rule 5550(a)(2), there is no guarantee that compliance can be successfully achieved.
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About Neo-Concept International Group Holdings Limited
Neo-Concept International Group Holdings Limited (“NCI”) is a one-stop apparel solution services provider. It offers a full suite of services in the apparel supply chain, including market trend analysis, product design and development, raw material sourcing, production and quality control, and logistics management serving customers located in the European and North American markets. It also sells its own branded apparel products under the brand “Les100Ciels” through retail stores in UK as well as the e-commerce platform www.les100ciels.com.
NCI is dedicated to minimizing its environmental footprint by implementing various eco-friendly practices. It prioritizes recycling, clean processes, and traceable sourcing as part of its commitment to reducing environmental impact. Additionally, NCI actively seeks sustainable solutions throughout the garment production process, aiming to meet the needs of its customers in an environmentally responsible manner.
SAFE HARBOR STATEMENT
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC, which are available for review at www.sec.gov.
Enquiries:
Neo-Concept International Group Holdings Limited Investor Relations Contact:
10/F, Seaview Centre
No.139-141 Hoi Bun Road
Kwun Tong, Kowloon, Hong Kong
(+852) 2798-8639
Email: [email protected]
FAQ
What is the deadline for NCI to meet Nasdaq’s minimum bid price requirement?
NCI has until July 7, 2025, to meet Nasdaq’s minimum bid price requirement of $1 per share.
What happens if NCI fails to meet the $1 minimum bid price requirement by July 2025?
If NCI fails to comply by July 7, 2025, Nasdaq Staff will notify the company of delisting, though NCI can appeal this decision to a Hearings Panel.
What is the minimum share price NCI needs to maintain for Nasdaq compliance?
NCI needs to maintain a minimum bid price of $1 per share to comply with Nasdaq Listing Rule 5550(a)(2).
How long is the second grace period granted to NCI by Nasdaq?
Nasdaq granted NCI an additional 180 calendar days, extending from January 7, 2025, to July 7, 2025.
