BEIJING, Aug. 13, 2021 /PRNewswire/ -- China Finance
Online Co. Limited ("China Finance Online", or the "Company", "we",
"us" or "our") (NASDAQ GS: JRJC), a leading web-based financial
services company that provides Chinese individual investors with
fintech-powered online access to securities trading services,
wealth management products, securities investment advisory
services, as well as financial database and analytics services to
institutional customers, today announced that on August 11, 2021, it has received a notice from
the Nasdaq Stock Market LLC ("Nasdaq") stating that the Staff
has determined that the Company had not been able to provide a
satisfactory definitive plan to regain compliance with the
$10 million minimum stockholders'
equity requirement for continued listing on the Nasdaq Global
Select Market under Nasdaq Listing Rule 5450(b)(1)(A) or
sustain such compliance over an extended period of time. As of
December 31, 2020, the Company's
shareholders' equity was approximately $4.6
million. The Company also does not meet the continued
listing requirements under alternative standards relating to the
market value of listed securities or the total assets or total
revenue of the Company. The Staff cited that the Company's proposed
timeframe to regain compliance is beyond the 180-day period
available under Nasdaq Listing Rule 5810(c)(2)(B) and that the
Company's history of loss would negatively affect the Company's
ability to regain or sustain compliance. The Staff had
determined to seek to delist the Company's securities from Nasdaq
unless the Company requests a hearing before the Nasdaq
Hearings Panel (the "Panel") by August 18, 2021.
The Company intends to timely request a hearing before the
Panel. Such request will stay any suspension or delisting action by
Nasdaq pending the Panel's decision. There can be no assurance that
the Panel will grant the Company's request for continued listing.
If the Panel does not grant the Company's request for continued
listing, its securities will be subject to delisting and the
liquidity and marketability of the Company's American Depositary
Shares would be adversely affected.
This announcement is made in compliance with Nasdaq Listing Rule
5810(b), which requires prompt disclosure of receipt of a delisting
notification.
About China Finance Online
China Finance Online Co. Limited is a leading web-based
financial services company that provides Chinese individual
investors with fintech-powered online access to securities trading
services, wealth management products, securities investment
advisory services, as well as financial database and analytics
services to institutional customers. The Company's prominent
flagship portal site, www.jrj.com, is ranked among the top
financial websites in China. In addition to the web-based
securities trading platform, the Company offers basic financial
software, information services and securities investment advisory
services to retail investors in China. Through its
subsidiary, Shenzhen Genius Information Technology Co. Ltd., the
Company provides financial database and analytics to institutional
customers including domestic financial, research, academic and
regulatory institutions. China Finance Online also provides
brokerage services in Hong
Kong.
Safe Harbor Statement
This press release contains forward-looking statements which
constitute "forward-looking" statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, and
as defined in the U.S. Private Securities Litigation Reform Act of
1995. The statements contained herein reflect management's
current views with respect to future events and financial
performance. These forward-looking statements are subject to
certain risks and uncertainties that could cause the actual results
to differ materially from those in the forward-looking statements,
all of which are difficult to predict and many of which are beyond
the control of the Company. These forward-looking statements
can be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Among other things, this
release contains the following forward-looking statements
regarding:
- liquidity and sources of funding, including our ability to
continue operating as a going concern;
- our prospect and our ability to attract new users;
- our prospect on building a comprehensive wealth management
ecosystem through providing a fully-integrated online communication
and securities-trading platform;
- our prospect on stabilization in cash attrition and improvement
of our financial position;
- our initiatives to address customers' demand for intuitive
online investment platforms and alternative investment
opportunities; and
- the market prospect of the business of securities-trading,
securities investment advisory and wealth management.
Such statements involve certain risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements, which risk factors and uncertainties
include, amongst others, substantial doubt about ability to
continue as a going concern, the outbreak of COVID-19 or other
health epidemics in China or
globally, changing customer needs, regulatory environment and
market conditions that we are subject to; the uneven condition of
the world and Chinese economies that could lead to volatility in
the equity markets and affect our operating results in the coming
quarters; the impact of the changing conditions of the mainland
Chinese stock market, Hong Kong
stock market and global financial markets on our future
performance; the unpredictability of our strategic transformation
and growth of new businesses; the prospect of our margin-related
business and the degree to which our implementation of margin
account screening and ongoing monitoring will yield successful
outcomes; the degree to which our strategic collaborations with
partners will yield successful outcomes; the prospects for
China's high-net-worth and
middle-class households; the prospects of equipping our customer
specialists with new technology, tools and financial knowledge;
wavering investor confidence that could impact our business; and
possible non-cash goodwill, intangible assets and investment
impairments may adversely affect our net income. Furthermore,
we have recurring losses from operation and inability to generate
sufficient cash flow to meet our obligation and sustain our
operations and face uncertainty as to the operation impact of the
COVID-19 outbreak, that raise substantial doubt about our ability
to continue as a going concern. Further information regarding
these and other risks is included in the Company's filings with the
U.S. Securities and Exchange Commission, including its annual
report on Form 20-F under "Forward-Looking Information" and "Risk
Factors". The Company does not undertake any obligation to
update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
applicable law.
For more information, please contact:
China Finance Online
+86-10-8336-3100
ir@jrj.com
Kevin Theiss
Awaken Advisors
(212) 521-4050
kevin@awakenlab.com
View original
content:https://www.prnewswire.com/news-releases/china-finance-online-announces-receipt-of-nasdaq-delisting-notice-301355000.html
SOURCE China Finance Online Co., Ltd.
