HONG KONG - PS International Group Ltd. (NASDAQ:PSIG), a Hong Kong-based global logistics service provider, has been notified of non-compliance with Nasdaq's minimum bid price rule. The company received a delinquency notification from the Listing Qualifications Department of The Nasdaq Stock Market on October 30, 2024, due to its share price falling below the required $1.00 threshold for 30 consecutive business days.
Under Nasdaq Listing Rule 5550(a)(2), listed securities must maintain a minimum bid price of $1.00 per share. The company has been given 180 calendar days, until April 28, 2025, to meet this requirement and regain compliance. During this grace period, PS International's shares will continue to trade on the Nasdaq Capital Market under the ticker PSIG.
If the company's bid price reaches or exceeds $1.00 per share for at least 10 consecutive business days before the April 2025 deadline, Nasdaq will confirm that PS International has regained compliance. Failure to comply by the deadline may result in additional time to meet the requirement, provided the company fulfills other initial listing standards, with the exception of the minimum bid price.
Founded in 1993, PS International specializes in air freight forwarding and aims to facilitate cross-border trade. The company operates through subsidiaries Profit Sail Int'l Express (H.K.) Limited and Business Great Global Supply Chain Limited, offering services in over 140 countries. PS International is also investing in technology to enhance its logistics services in the e-commerce market.
This notification does not affect the company's business operations or the trading of its shares. The information is based on a press release statement and includes forward-looking statements under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.
InvestingPro Insights
PS International Group's recent Nasdaq compliance issues are reflected in its current market performance. According to InvestingPro data, the company's stock price has fallen significantly, with a 93.27% decline over the past six months and a 92.84% drop over the last year. This sharp decline aligns with the company's struggle to maintain the $1.00 minimum bid price required by Nasdaq.
Despite these challenges, PS International shows some financial strengths. An InvestingPro Tip indicates that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates this compliance issue. Additionally, the company's revenue growth is noteworthy, with a 43.9% increase in the last twelve months as of Q4 2023, suggesting that its core business operations remain robust despite stock market challenges.
However, investors should note that PS International suffers from weak gross profit margins, as highlighted by another InvestingPro Tip. This could potentially impact the company's ability to invest in strategies to boost its stock price.
For a more comprehensive analysis, InvestingPro offers 13 additional tips for PS International Group, providing deeper insights into the company's financial health and market position.
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