SHANGHAI, July 17, 2018 /PRNewswire/ -- The9 Limited
(Nasdaq: NCTY) ("The9" or the "Company"), an established Internet
company, today announced that it received a notification letter
from the Listing Qualifications Department of The Nasdaq Stock
Market, Inc. ("Nasdaq") dated July 16,
2018 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 ("ADSs"),
each representing three ordinary shares of the Company, for the
last 30 consecutive business days was below the minimum MVPHS
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
January 14, 2019 (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.
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.
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SOURCE The9 Limited