ATA Creativity Global Faces Nasdaq Minimum Bid Price Deficiency

TL;DR

ATA stock is below $1, Nasdaq gave 'em 180 days to fix it or get booted.

AI Summary

ATA Creativity Global (ATA) received a notification from Nasdaq on May 29, 2024, stating that the company no longer meets the minimum bid price requirement of $1.00 per share. The company has a period of 180 calendar days, until November 25, 2024, to regain compliance.

Why It Matters

Failure to regain compliance could lead to delisting from the Nasdaq stock exchange, impacting the company's liquidity and investor confidence.

Risk Assessment

Risk Level: medium — The company faces delisting from Nasdaq if it cannot meet the minimum bid price requirement within the specified timeframe.

Key Numbers

• 180 — Compliance Period (Number of calendar days ATA Creativity Global has to regain compliance with Nasdaq's minimum bid price rule.)
• $1.00 — Minimum Bid Price (The threshold the company's stock price must meet to comply with Nasdaq listing rules.)

Key Players & Entities

• ATA Creativity Global (company) — The company that received the notification.
• Nasdaq (company) — The stock exchange that issued the notification.
• May 29, 2024 (date) — Date of the notification letter from Nasdaq.
• November 25, 2024 (date) — Deadline for ATA Creativity Global to regain compliance.
• $1.00 (dollar_amount) — The minimum bid price requirement.

FAQ

Key Financial Figures

• $1.00 — dquo;) listed on the Nasdaq was below US$1.00 for 30 consecutive business days. Nasd

Filing Documents

• tm2416130d1_6k.htm (6-K) — 14KB
• 0001104659-24-067846.txt ( ) — 15KB

From the Filing

SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of June 2024 Commission File Number: 001-33910 ATA Creativity Global c/o Rm. 507, Bldg. 3, BinhuZhuoyueCheng , WenhuaKechuangYuan, Huayuan Blvd. 365, Baohe, Hefei, Anhui 230051, China (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F ATA Creativity Global Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency ATA Creativity Global (the “ Company ”) announced that the Company received a written letter from the Nasdaq Stock Market LLC (“Nasdaq”) dated May 29, 2024, notifying the Company that it no longer meets the minimum bid price requirement set forth in Nasdaq Listing Rules for continued listing on the Nasdaq as the closing bid price for the Company’s American depositary shares (“ADSs”) listed on the Nasdaq was below US$1.00 for 30 consecutive business days. Nasdaq Listing Rule 5450(a)(1) requires listed securities to maintain a minimum bid price of US$1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. The Nasdaq letter has no immediate impact on the Company’s listing on the Nasdaq Global Market. The Company’s ADSs will continue to trade on the Nasdaq under the symbol “AACG”. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided 180 calendar days, or until November 25, 2024, to regain compliance with Nasdaq Listing Rule 5450(a)(1). If at any time before November 25, 2024, the bid price of the Company’s ADSs closes at or above US$1.00 for a minimum of 10 consecutive business days, Nasdaq will provide written notification that the Company has regained compliance with the minimum bid price requirement, and the matter will be closed. In the event the Company does not regain compliance by November 25, 2024, the Company may be eligible for additional time to regain complianceif it meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the minimum bid price requirement. To qualify, the Company will need to provide Nasdaq with written notice of its intention to cure the deficiency during the second compliance period. The Company’s business operations are not affected by the Nasdaq letter. The Company intends to closely monitor the closing bid price of its ADSs between now and November 25, 2024, and seeks to cure the deficiency within the prescribed compliance period. This Report on Form 6-K, and sections titled “First Quarter 2024 Highlights,” “Operating Review,” “First Quarter 2024 Financial Review - GAAP Results,” “Non-GAAP Measures,” “Other Data,” “Balance Sheet Highlights,” “Cautionary Note Regarding Forward-looking Statements,” “Currency Convenience Translation” and “About Non-GAAP Financial Measures” and the financial statements contained in the press release which is exhibit 99.1 to the Company's Report on Form 6-K (File No. 001-33910) furnished with the Securities and Exchange Commission on May 16, 2024, are incorporated by reference into the Company's Registration Statement on Form F-3 (File No. 333-278921), filed with the Securities and Exchange Commission on April 25, 2024, to be a part thereof from the date on which such Report is/was submitted respectively, to the extent not superseded by documents or reports subsequently filed or furnished. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ATA Creativity Global By: /s/ Ruobai Sima Name: Ruobai Sima Title: Chief Financial Officer Date: June 3, 2024 3

View Full Filing

View this 6-K filing on SEC EDGAR