BEIJING, Nov. 18, 2022 Gaotu Techedu Inc.
("Gaotu" or the "Company") (NYSE: GOTU), a technology-driven
education company and online large-class tutoring service provider
in China, today announced that the Company has received a
letter from the New York Stock Exchange (the "NYSE") dated
November 16, 2022, notifying that the
Company is below compliance standards due to the trading price of
its American depositary shares (the "ADSs").
Pursuant to NYSE continued listing standards, a Company is
considered "below criteria" for average closing price of a security
is less than $1.00 over a consecutive
30 trading-day period. As of November 15,
2022, the 30 trading-day average price of the Company's ADSs
was $0.90. As of the date of the NYSE
letter, the Company's average market capitalization is above the
$50 million listing standard over a
30 trading-day period, and the stockholders' equity is above the
$50 million listing standard.
Once notified, the Company must bring its share price and
average share price back above $1.00
by six months following receipt of the notification. The Company
can regain its compliance status at any time by demonstrating an
accelerated cure based on a $1.00
share price on both the last trading day of any calendar month
within the six-month cure period and the average share price over
the 30 trading days preceding the end of that month. In the event
that at the expiration of the six-month cure period, both a
$1.00 closing share price on the last
trading day of the cure period and a $1.00 average closing share price over the 30
trading-day period ending on the last trading day of the cure
period are not attained, the NYSE will commence suspension and
delisting procedures.
To address this issue, the Company intends to monitor the market
conditions of its listed securities and is still considering its
options to cure this deficiency.
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" and similar statements. Among other things,
the business outlook, as well as the Company's strategic and
operational plans, contain forward-looking statements. The Company
may also make written or oral forward-looking statements in its
reports filed with, or furnished to, the U.S. Securities and
Exchange Commission, in its annual reports to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: the
Company's ability to continue to attract students to enroll in its
courses; the Company's ability to continue to recruit, train and
retain qualified teachers; the Company's ability to improve the
content of its existing course offerings and to develop new
courses; the Company's ability to maintain and enhance its brand;
the Company's ability to maintain and continue to improve its
teaching results; and the Company's ability to compete effectively
against its competitors. Further information regarding these and
other risks is included in the Company's reports filed with, or
furnished to the U.S. Securities and Exchange Commission. All
information provided in this press release and in the attachments
is as of the date of this press release, and the Company undertakes
no duty to update such information or any forward-looking
statement, except as required under applicable law.
About Gaotu Techedu Inc.
Gaotu is a technology-driven education company and online
large-class tutoring service provider in China. The Company
offers educational services for college students and adults,
non-academic tutoring services, and educational contents &
digitalized learning products. Gaotu adopts an online live
large-class format to deliver its courses, which the Company
believes is the most effective and scalable model to disseminate
scarce high-quality teaching resources to aspiring students
in China. Big data analytics permeates every aspect of the
Company's business and facilitates the application of the latest
technology to improve teaching delivery, student learning
experience, and operational efficiency.
For further information, please contact:
Gaotu Techedu Inc.
Investor Relations
E-mail: ir@gaotu.cn
Christensen
In China
Ms. Vivian Wang
Phone: +852 2232 3978
E-mail: gotu@christensencomms.com
In the US
Ms. Linda Bergkamp
Phone: +1-480-614-3004
E-mail: lbergkamp@christensenir.com
View original
content:https://www.prnewswire.com/news-releases/gaotu-techedu-announces-receipt-of-nyse-non-compliance-letter-regarding-ads-trading-price-301682685.html
SOURCE Gaotu Techedu Inc.