TCTM Responds to Nasdaq Notification on Minimum Bid Price Compliance

TCTM's Nasdaq Notification: Understanding the Implications

TCTM Kids IT Education Inc., a well-known provider of STEM education services focusing on IT for children in China, has officially announced that it has received a notification from Nasdaq concerning its stock pricing status. This notification, dated January 3, 2025, details that the company's American depositary shares (ADSs) have traded below the minimum bid price of $1.00 per share for the last 30 consecutive business days, making TCTM no longer compliant with the Nasdaq Capital Market’s regulations. Despite this notification, TCTM assures its stakeholders that there will be no immediate impacts on trading or listing.

Background and Compliance Period

As per the standards set out in Nasdaq Listing Rule 5550(a)(2), companies are required to maintain a minimum bid price for their securities to remain listed. TCTM was granted a grace period of 180 calendar days, allowing until July 2, 2025, to rectify this issue by ensuring that the closing bid price of its ADSs reaches $1.00 per share for at least ten consecutive business days. Should TCTM fail to meet this requirement by the end of the grace period, additional compliance opportunities may arise depending on whether they meet other listing criteria, including a mandatory reverse stock split if necessary.

Business Operations Unaffected

It’s essential to note that this notification does not disrupt TCTM's ongoing business operations. The company continues to function as normal while exploring various strategies to regain compliance within the designated timeframe. TCTM remains optimistic about its ability to meet the necessary share price requirements and is committed to taking every possible measure.

About TCTM and Its Mission

TCTM Kids IT Education Inc. focuses on providing innovative IT-centered STEM education to students from the age of three to eighteen years. Their educational platform includes live distance instruction, classroom-based tutoring, and online modules to engage students effectively. Key programs include courses in computer coding and robotics aimed at fostering logical thinking and problem-solving skills among the youth. TCTM is dedicated to nurturing children's interests in technology and education, essentially embodying a philosophy of 'code to learn.'

Conclusion

This recent communication from Nasdaq is a crucial reminder of the dynamic environment in which publicly-traded companies operate. TCTM’s proactive approach reflects its commitment to maintaining compliance while promising to deliver high-quality educational services which remain unaffected by stock pricing fluctuations. With its good standing in the educational field and a strategic plan to meet listing requirements, TCTM stands ready to adapt and rise to the occasion, reinforcing its position in the rapidly evolving education sector. Stakeholders are encouraged to remain informed on future developments as the company navigates through this period of adjustment.