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The9 Limited Announces Receipt of Nasdaq Notice of Deficiency
SHANGHAI, Dec. 26, 2017 /PRNewswire/ -- The9 Limited (Nasdaq: NCTY) ("The9" or the "Company"), an online game developer and operator, today announced that it received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market, Inc. ("Nasdaq") dated December 20, 2017 indicating that the Company no longer meets the continued listing requirement of minimum Market Value of Publicly Held Shares ("MVPHS") for the Nasdaq Global Market, as set forth in the Nasdaq Listing Rule 5450(b)(2)(C), because the market value of the Company's publicly held American depositary shares ("ADS"), each representing one ordinary share of the Company, for the last 30 consecutive business days was below the minimum requirement of US$15,000,000.
Pursuant to Rule 5810(c)(3)(D) of the Nasdaq Listing Rules, the Company has a compliance period of 180 calendar days, or until June 18, 2018 (the "Compliance Period"), to regain compliance with Nasdaq's minimum MVPHS requirement. If at any time during the Compliance Period, the Company's MVPHS closes at US$15,000,000 or more for a minimum of ten consecutive business days, Nasdaq will provide the Company a written confirmation of compliance and the matter will be closed. In the event the Company does not regain compliance with Rule 5450(b)(2)(C) prior to the expiration of the compliance period, the Company will receive written notification that its securities are subject to delisting from the Nasdaq Global Market.
The Company's management is looking into various options available to regain compliance and maintain its continued listing on The Nasdaq Global Market, and is also considering other options, including a potential transfer of its listing of securities to the Nasdaq Capital Market. The Nasdaq Capital Market is a continuous trading market that operates in substantially the same manner as the Nasdaq Global Market where listed companies must meet certain financial requirements and comply with Nasdaq's corporate governance requirements. The Company is confident that, if the business conditions and the Nasdaq Listing Rules warrant, the Company can regain compliance with Nasdaq's minimum MVPHS requirement within the Compliance Period.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "considers" and similar statements. Statements that are not historical facts, including statements about The9's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, The9's ability to license, develop or acquire online games that are appealing to users, The9's ability to retain existing players and attract new players, The9's ability to anticipate and adapt to changing consumer preferences and respond to competitive market conditions, political and economic policies of the Chinese government, the laws and regulations governing the online game industry, information disseminated over the Internet and Internet content providers in China, intensified government regulation of Internet cafes, and other risks and uncertainties outlined in The9's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. The9 does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
SOURCE The9 Limited
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