Business Context and Reporting Period
This Form 6-K filing by LightInTheBox Holding Co., Ltd. covers the period ending October 31, 2018. The report addresses a regulatory notification received from The New York Stock Exchange (NYSE) regarding the company's 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 corporate governance and listing status rather than financial performance data.
Material Changes
The primary material event is the receipt of a letter from the NYSE on October 30, 2018, stating the company is "below criteria" for continued listing. This determination was made because the average closing price of the company's American Depositary Shares (ADSs) fell below $1.00 over a consecutive 30-trading-day period.
Outlook, Risks, and Contingencies
- Cure Period: The company has been granted a six-month period, until April 22, 2019, to regain compliance.
- Compliance Requirements: To cure the deficiency, the company must achieve a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of any calendar month during the cure period.
- Management Action: The company intends to notify the NYSE of its intent to cure the deficiency by November 5, 2018.
- Delisting Risk: If the company fails to meet the price requirements by the expiration of the cure period, the NYSE will commence suspension and delisting procedures.
Investor Verification Checklist
- Verify the current trading price of LightInTheBox ADSs to assess the likelihood of meeting the $1.00 threshold.
- Monitor subsequent filings for the formal notice of intent to cure the deficiency, expected by November 5, 2018.
- Review the company's financial health in other reports (e.g., Form 20-F) to understand the underlying causes of the share price decline.
- Track the 30-day average closing price leading up to the end of each calendar month during the cure period.