Lichen China Limited Faces Nasdaq Delisting Due to Low Share Price Criteria

Lichen China Limited, recognized as a prominent provider of financial and taxation services in China, has announced a significant development regarding its listing status on the Nasdaq Stock Market. The company disclosed that it received a notification indicating it has failed to meet the compliance requirements set out under Nasdaq's Listing Rule 5810(c)(3)(A)(iii), commonly referred to as the Low Priced Stocks Rule. This rule mandates that companies maintain a minimum bid price for their securities.

From January 28 to February 11, 2025, Lichen China’s shares experienced a closing bid price of $.10 or less for eleven consecutive trading days, prompting this compliance issue. The notification comes in the wake of an earlier notice from Nasdaq on January 23, 2025, which stated that Lichen China's share price had also fallen below the $1.00 mark over the preceding thirty trading days, thus violating Listing Rule 5550(a)(2).

As per Nasdaq’s regulation, Lichen China was granted a compliance period of 180 calendar days, due to end on July 22, 2025, to rectify this situation. However, the recent delisting notice has cut this compliance period short, requiring the company to act swiftly. Lichen China has until February 19, 2025, to appeal Nasdaq’s decision to a hearing panel. By filing an appeal, the company can postpone the suspension of its securities while the appeal process is reviewed.

If Lichen China fails to submit the required appeal by the deadline, trading of its shares will be halted at the start of business on February 21, 2025. Following this, a Form 25-NSE will be filed with the Securities and Exchange Commission, signifying the removal of the company's securities from Nasdaq’s listings and registration.

As part of its response, Lichen China is evaluating all possible avenues to re-establish compliance with the listing rules. Among the strategies being considered is the potential for a reverse stock split, which could effectively boost the share price by reducing the number of outstanding shares.

For over 18 years, Lichen China has positioned itself as an expert in the financial and taxation services sector, earning a reputation for its professional and high-quality service offerings. The company is dedicated to providing comprehensive solutions in financial management, taxation, educational support, and software maintenance under its 'Lichen' brand. Given its extensive experience, Lichen China remains hopeful about overcoming the current challenges and continuing to serve its clients effectively.

Investors and stakeholders are advised to stay tuned for updates as the company navigates through this critical period and works towards restoration of its compliance status on the Nasdaq market. More details about Lichen China's services and updates can be found on the company's official website.