Yunhong Green CTI Ltd. (NASDAQ:YHGJ), an Illinois-based manufacturer of fabricated rubber products, has received a notice from The Nasdaq Capital Market indicating non-compliance with the exchange's minimum bid price requirement. The notice, dated October 21, 2024, was triggered by the company's common stock closing below the minimum $1.00 threshold for 30 consecutive business days.
The company, formerly known as CTI Industries Corp, has been given an initial period of 180 days, until April 21, 2025, to regain compliance with the Nasdaq Listing Rule 5550(a)(2). To meet the requirements, the closing bid price of Yunhong Green CTI's common stock must reach $1.00 or more per share for at least 10 consecutive business days within this period.
While the notice does not currently affect the listing or trading of Yunhong Green CTI's common stock on Nasdaq, the company has stated its intention to actively monitor its stock's closing bid price and consider options to regain compliance with the Minimum Bid Price Rule.
In other recent news, Yunhong Green CTI Ltd. announced an Asset Purchase Agreement (APA) with Yunhong Environmental Protection Technology Co., Ltd., and related parties. The deal, finalized recently, involves the acquisition of manufacturing equipment and a working capital credit, aiming to enhance Yunhong Green CTI's production capabilities in biodegradable and recyclable materials. The transaction includes a working capital credit of $2,192,229 for operational expenses and does not involve the assumption of any outstanding liabilities.
As part of the purchase price, Yunhong Green CTI issued 5,000,000 shares of its common stock, with a majority going to the seller and the remaining to Yunhong China Group Co., Ltd. The shares were issued at the market price as of the closing date. The seller parties are primarily owned by Mr. Yuabo Li, Yunhong Green CTI's Chairman and board member.
This strategic acquisition follows Yunhong Green CTI's shareholder-approved increase in authorized shares of common stock, targeted at acquiring productive assets. The acquisition is anticipated to expand Yunhong Green CTI's manufacturing capabilities and improve its market position in environmentally friendly products. These are recent developments that could potentially influence the company's future.
InvestingPro Insights
Recent data from InvestingPro sheds light on Yunhong Green CTI Ltd.'s (NASDAQ:YHGJ) current financial situation, providing context to the company's Nasdaq compliance challenges. The company's market capitalization stands at a modest $18.53 million, reflecting its small-cap status.
InvestingPro Tips highlight that YHGJ's stock has taken a significant hit recently, with a 9.09% decline over the past week and a substantial 24.73% drop in the last month. This downward trend aligns with the company's struggle to maintain the minimum $1.00 bid price required by Nasdaq. The stock's price volatility and poor performance over the past year (-72.97% total return) underscore the challenges YHGJ faces in regaining compliance.
Additionally, InvestingPro data reveals that Yunhong Green CTI is not currently profitable, with a negative operating income of $0.64 million in the last twelve months. This financial strain may complicate the company's efforts to boost investor confidence and share price.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for YHGJ, providing deeper insights into the company's financial health and market position.
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