Business Context and Reporting Period
This Form 8-K is filed by Code Chain New Continent Limited (trading symbol: CCNC) on May 5, 2022. The company is incorporated in Nevada and operates with principal executive offices in Chengdu, China. The filing addresses a regulatory notice received from the Nasdaq Stock Market regarding the company's compliance with continued listing standards.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the status of the company's stock listing and does not contain financial performance data for the reporting period.
Material Changes
The primary material event reported is the receipt of a letter from Nasdaq on May 5, 2022, notifying the company of its failure to comply with Nasdaq Continued Listing Rule 5550(a)(2). This rule requires listed securities to maintain a minimum bid price of $1.00 per share. The company failed to meet this requirement as its closing bid price remained below $1.00 for 30 consecutive business days (specifically from March 23, 2022, through May 4, 2022).
Outlook, Risks, and Contingencies
- Compliance Period: The company has been granted an initial 180-day compliance period ending November 1, 2022, to regain compliance.
- Regaining Compliance: To cure the deficiency, the company must maintain a closing bid price of at least $1.00 for a minimum of ten consecutive business days during the compliance period.
- Secondary Compliance: If the company fails to regain compliance in the first period, it may apply for an additional 180 days, provided it meets other initial listing standards (excluding the bid price requirement) and submits written notice of intent to cure.
- Delisting Risk: If the company cannot cure the deficiency or is deemed ineligible by Nasdaq staff, it may be subject to delisting.
- Current Status: The notice has no immediate impact on trading; the stock will continue to be listed and traded on the Nasdaq Capital Market pending compliance.
Investor Verification Checklist
- Verify the current closing bid price of CCNC stock to assess progress toward the $1.00 threshold.
- Monitor the company's stock price for a sustained period of ten consecutive business days above $1.00 to confirm compliance.
- Review future filings for any announcements regarding the application for a second 180-day compliance period if the initial deadline is missed.
- Check for any subsequent communications from Nasdaq regarding the company's eligibility or potential delisting actions.