HANGZHOU, China - Kaixin Holdings (NASDAQ: KXIN), a prominent new energy vehicle manufacturer in China, has been granted an extension by the Nasdaq Hearings Panel to meet the exchange's minimum bid price requirement, the company announced today. The extension gives Kaixin until December 13, 2024, to comply with the Nasdaq's Listing Rule 5550(a)(2), commonly known as the Bid Price Rule.
The company disclosed that the Nasdaq Hearings Panel's decision, dated September 12, 2024, allows for a temporary exception provided Kaixin achieves certain milestones. These include obtaining shareholder approval for a reverse stock split by October 1, 2024, effectuating the reverse stock split by November 30, 2024, and demonstrating a closing bid price of $1 or more per share for at least ten consecutive trading sessions by December 13, 2024. Failure to meet these conditions could lead to delisting of Kaixin's securities from the exchange.
Kaixin is planning to hold an extraordinary general meeting on October 1, 2024, to seek shareholder approval for a reverse stock split at a ratio that will satisfy the minimum bid price requirement. The company aims to complete the reverse stock split by the end of November and maintain the required $1 closing bid price for a minimum of ten consecutive business days.
Kaixin Holdings is known for its production of electric passenger and logistics vehicle models and has been focusing on expanding its international market presence through both online and offline channels. The company's efforts are part of its commitment to innovation and sustainability, contributing to China's goals of peak carbon emissions and carbon neutrality.
The press release also contains forward-looking statements regarding Kaixin's business expectations and market acceptance of its services, which are subject to risks and uncertainties. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.
The information in this article is based on a press release statement from Kaixin Holdings.
InvestingPro Insights
As Kaixin Holdings (NASDAQ: KXIN) navigates its path to compliance with the Nasdaq's minimum bid price requirement, the company's financial metrics and market performance provide additional context for investors. According to InvestingPro, Kaixin is trading at a low Price / Book multiple of 0.08 as of the last twelve months ending Q4 2023, which could indicate that the company's market value is significantly lower than its book value. This situation often attracts investors looking for potentially undervalued stocks.
However, the challenges for Kaixin are evident in its significant revenue decline, with a -61.93% decrease in the last twelve months as of Q4 2023. This decline is compounded by a gross profit margin of -72.68%, reflecting costs outweighing revenue and leading to a negative operating income margin of -140.31% for the same period. These figures underscore the financial pressures the company faces as it works towards meeting Nasdaq's requirements.
The stock's price has also experienced considerable volatility, with a -98.03% one-year price total return as of the latest available data, highlighting the stock's high-risk nature for potential investors. Despite this, Kaixin's efforts to innovate and expand in the new energy vehicle market continue.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, including insights on the company's cash burn rate and valuation multiples. In total, there are 17 InvestingPro Tips listed for Kaixin Holdings, providing a comprehensive overview for those considering an investment in the company's future.
To explore these tips and metrics further, interested parties can visit InvestingPro's dedicated page for Kaixin Holdings at https://www.investing.com/pro/KXIN, which offers a more detailed investment analysis.
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