AirNet Technology receives deficiency letter from Nasdaq

AirNet Technology announced that it received a notification letter dated September 16, 2020 from the Listing Qualifications Department of The Nasdaq Stock Market Inc. notifying that the company is no longer in compliance with the Nasdaq Listing Rule 5550b1 for continued listing due to its failure to maintain a minimum of $2.5 million in stockholders' equity. In the company's Form 20-F for the fiscal year ended December 31, 2019, the company reported a negative stockholders' equity of approximately $19 million. Nasdaq also determined that the company does not meet the alternatives of market value of listed securities or net income from continuing operations for continued listing. The Deficiency Letter does not result in the immediate delisting of the company's ordinary shares represented by American depositary shares on the Nasdaq Capital Market. The company has 45 calendar days from the date of the Deficiency Letter, or until November 2, 2020, to submit a plan to Nasdaq to regain compliance with the minimum stockholders' equity standard. If the Compliance Plan is accepted by Nasdaq, the company may be granted a compliance period of up to 180 calendar days from the date of the Deficiency Letter to evidence compliance. However, since Nasdaq previously notified the company that its bid price compliance period expires on December 10, 2020, the Compliance Plan shall also set forth a plan to address the minimum bid price requirement by such date.