HWH International Inc. has regained compliance with Nasdaq's listing requirements, as confirmed by a notice from the Nasdaq Stock Market received on January 23, 2025. The company, which operates under the wholesale drug and sundries sector and currently maintains a market capitalization of $8.93 million, had been under scrutiny following a Nasdaq Hearing Panel decision on October 21, 2024.
According to InvestingPro data, the company faces significant challenges with a weak financial health score and negative EBITDA of $1.59 million in the last twelve months.
The Bethesda, Maryland-based company, formerly known as Alset Capital Acquisition Corp., has satisfied the minimum equity requirement as per Nasdaq's Listing Rule 5550(b)(1). This development follows a period of uncertainty regarding the company's ability to meet the exchange's financial standards, reflected in its stock performance with a -84.78% return over the past year. InvestingPro subscribers have access to 13 additional key insights about HWH's financial position and market performance.
As part of the compliance process, HWH International will undergo a one-year monitoring period mandated by the panel. This oversight is intended to ensure the company maintains the requisite compliance standards.
The confirmation of regained compliance is a significant step for HWH International, which is listed on the Nasdaq Capital Market under the ticker symbol (NASDAQ:HWH). The company's stock, with a par value of $0.0001 per share, will continue to be traded on this market following the positive outcome.
This news was disclosed in accordance with the SEC's 8-K filing requirements and represents a pivotal moment for the company's ongoing operations and investor relations. The filing also included a Cover Page Interactive Data File, which is embedded within the Inline XBRL document.
HWH International's Chief Financial Officer, Rongguo Wei, has signed off on the report, affirming the company's commitment to transparency and regulatory adherence. This development may provide a foundation for future financial stability and investor confidence in the company's market position.
In other recent news, HWH International has finalized its public offering, raising approximately $1.76 million. This offering involved the sale of over three million shares of common stock and over one million pre-funded warrants. The company has also entered into a stock purchase agreement with Alset Inc., its majority shareholder, resulting in the issuance of new shares and an enhancement of stockholders' equity by $3 million.
HWH International has reported significant growth in its joint venture, Hapi Travel, with revenues exceeding $18 million in the first three quarters. This marks a revenue growth of 44.55% over the last twelve months. Meanwhile, the company has converted $3,801,759 in debt into equity by issuing new shares.
D. Boral (OTC:BOALY) Capital LLC served as the exclusive placement agent for the transaction. Despite these developments, HWH International is still facing potential delisting from the Nasdaq Global Market due to failing to meet the minimum market value and bid price requirements.
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