XIAMEN, China - Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT), a company specializing in augmented reality (AR) interactive entertainment, has been notified by Nasdaq of non-compliance with its minimum bid price rule. The notice, received on September 6, 2024, indicates that from July 25, 2024, to September 5, 2024, the closing bid price of Blue Hat's ordinary shares was below the required minimum of $1.00 for 30 consecutive business days.
The Nasdaq Listing Rules mandate that the bid price for listed ordinary shares should not fall below $1.00, and failure to meet this requirement constitutes a compliance deficiency. However, this notice does not immediately affect Blue Hat's listing on the Nasdaq Capital Market. The company has been granted a 180-day period, ending on March 5, 2025, to regain compliance with the minimum bid price requirement.
During this Compliance Period, Blue Hat's ordinary shares will continue to trade on the Nasdaq Capital Market. If the company's bid price closes at or above $1.00 per share for at least 10 consecutive business days before the period expires, Nasdaq will confirm that Blue Hat has regained compliance.
If Blue Hat fails to meet the requirement by the end of the Compliance Period, it may be eligible for an extension if it is meeting all other listing requirements and provides a plan to address the bid price deficiency. In the event of continued non-compliance, the company's securities may face delisting, but Blue Hat would have the opportunity to appeal before a Nasdaq hearing panel.
Blue Hat, which has transitioned from providing communication services and IDC business to focusing on AR interactive games, toys, and educational materials, is now expanding into commodity trading. The company aims to establish itself as a leading intelligent commodity trader globally.
This announcement is based on a press release statement from Blue Hat Interactive Entertainment Technology and contains forward-looking statements regarding the company's intentions to monitor its share price and consider available options to achieve compliance if necessary.
In other recent news, Blue Hat Interactive Entertainment Technology has made a significant shift into the gold supply chain business. The company recently made its first delivery of a 1,000-kilogram gold shipment, a strategic move aimed at establishing a new revenue stream. This development followed a framework agreement made with Macau Rongxin Precious Metals Technology Co., Ltd.
Notably, Blue Hat has also announced its intention to acquire a 60% share of UAE-based financial technology firm GTC Multi Trading DMCC. This acquisition underscores the company's strategic pivot towards the fintech sector, particularly AI-assisted trading of gold, precious metals, and financial derivatives.
The company's unique approach to gold trading involves generating revenue from various aspects of the gold supply chain. This includes the use of artificial intelligence to enhance its supply chain and trading platform capabilities. Its subsidiary, Golden Alpha Strategy Ltd., has secured Dealers in Precious Metals and Stones Category A Registration from the Hong Kong Customs and Excise Department.
In a noteworthy development, Blue Hat has appointed an AI digital person, "Aileen," as Chief Information Officer. Aileen's role involves gathering industry information to support strategic decisions and engaging with investors and media online. These developments are part of Blue Hat's broader efforts to diversify its business portfolio and establish itself as a leading intelligent commodity trader on a global scale.
InvestingPro Insights
As Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT) navigates through its compliance period with Nasdaq, real-time data and insights from InvestingPro shed light on the company's financial health and market performance. The company's market capitalization stands at approximately $24.75 million, reflecting its size within the industry. Despite the challenges with its share price, Blue Hat's revenue has seen a substantial increase, with the last twelve months as of Q4 2023 reporting a remarkable growth of 3255.57%. This indicates a significant expansion in the company's business operations, which could be a positive signal for investors looking at the company's potential growth trajectory.
One of the InvestingPro Tips highlights that Blue Hat's stock has experienced high volatility, which may attract investors looking for short-term trading opportunities but could also signal caution for those seeking long-term investments. Additionally, the company’s shares have been trading at a low revenue valuation multiple, which could suggest that the stock is undervalued compared to its revenue generation – a point of interest for value investors considering entry points into the market.
InvestingPro also notes that Blue Hat does not pay a dividend to shareholders, which could influence the investment decisions of those seeking regular income from their investments. Moreover, the company has been operating with a moderate level of debt, which can have implications for its financial flexibility and risk profile.
For readers interested in a deeper analysis, additional InvestingPro Tips are available, providing a more comprehensive look at Blue Hat's financial metrics and market performance. With 11 more tips listed on the InvestingPro platform, investors can gain a better understanding of the company's position and prospects.
The InvestingPro Fair Value for Blue Hat's stock is currently set at $0.56, which may provide a reference point for investors assessing the stock's current price and potential for recovery. As Blue Hat works towards regaining compliance with Nasdaq's minimum bid price requirement, these insights can help investors monitor the company's progress and make informed decisions.
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