HONG KONG - J-Long Group Limited (NASDAQ:JL), a Hong Kong-based distributor of garment trims, has received a notice from the Nasdaq Stock Market indicating that the company is not meeting the $1.00 minimum bid price requirement. This is a necessary condition for the continued listing of the company's ordinary shares on the Nasdaq Global Market.
The notice, dated May 16, 2024, grants J-Long Group a 180-day period, until November 11, 2024, to comply with this requirement. Compliance would mean maintaining a closing bid price of at least $1.00 per ordinary share for a minimum of ten consecutive business days. Currently, the company's shares continue to be listed and are actively trading on the Nasdaq Global Market under the ticker symbol JL.
While the notice does not immediately impact the listing of J-Long Group's shares, it highlights the need for the company to address the bid price deficiency. J-Long Group has expressed its intention to monitor its share price closely and is considering measures to regain compliance, including the possibility of a reverse stock split.
If the company fails to meet the minimum bid price requirement by the compliance deadline, it may be eligible for an additional grace period of 180 days to achieve compliance, as per the Nasdaq Listing Rules.
J-Long Group specializes in the distribution of both reflective and non-reflective garment trims, offering services that range from market trend analysis to product design, development, and quality control.
This report is based on a press release statement from J-Long Group Limited.
InvestingPro Insights
As J-Long Group Limited (NASDAQ:JL) faces the challenge of meeting Nasdaq's minimum bid price requirement, a glance at the company's recent performance through InvestingPro data and tips provides a deeper understanding of its current market position.
InvestingPro data reveals that J-Long Group is trading at a low earnings multiple with a P/E Ratio (Adjusted) of 6.03 as of the last twelve months ending Q2 2024, suggesting a potentially undervalued stock compared to earnings. Moreover, the company's Price/Book ratio stands at 1.82, offering another angle from which the stock might be considered reasonably valued in terms of its assets.
Despite recent challenges, J-Long Group has demonstrated profitability over the last twelve months, with a Basic and Diluted EPS (Cont. Ops) of 0.16 USD. However, the company has experienced a significant price drop, with a 1 Year Price Total Return of -89.13% as of the date provided, which aligns with the InvestingPro Tip that the price has fallen significantly over the last year.
Investors looking for additional insights can find more InvestingPro Tips for J-Long Group, such as the stock's high price volatility and its liquidity position, which shows that liquid assets exceed short-term obligations. For those interested in a comprehensive analysis, there are 6 additional InvestingPro Tips available, which could further guide investment decisions.
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With the next earnings date scheduled for July 25, 2024, investors and stakeholders of J-Long Group will be closely monitoring the company's performance and strategic initiatives to address the Nasdaq compliance issue.
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