Santech Holdings Ltd (NASDAQ:STEC), an investment advisory firm, has been notified by The Nasdaq Stock Market LLC of a compliance issue due to the delayed filing of its annual report. The company received a letter from Nasdaq on Thursday, stating that it had not met the filing deadline for its Form 20-F for the fiscal year ended June 30, 2024. As a result, Santech Holdings is currently not in compliance with Nasdaq's Listing Rule 5250(c)(1), which is a requirement for continued listing on the exchange.
Santech Holdings has been given 60 calendar days, until January 21, 2025, to submit a plan to regain compliance. If their plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from the original filing deadline, or until May 14, 2025, for the company to file its overdue report.
The company has stated that it is working with advisors to either prepare the necessary filing or develop a plan to regain compliance within the stipulated deadline. The non-compliance notice does not affect the trading of Santech's American depositary shares (ADSs) for the time being, and they will continue to trade on The Nasdaq Global Market under the symbol "STEC."
The information provided in this article is based on a press release statement from Santech Holdings Limited.
InvestingPro Insights
Santech Holdings' compliance issues with Nasdaq come amid challenging financial performance, as revealed by InvestingPro data. The company's revenue for the last twelve months as of Q2 2024 stood at $260.22 million, with a concerning revenue growth decline of -11.92% over the same period. This negative trend is further emphasized by a quarterly revenue decline of -23.63% in Q2 2024.
InvestingPro Tips highlight that Santech has not been profitable over the last twelve months, with an adjusted operating income of -$50.95 million and a negative operating income margin of -19.58%. The company's stock price has also taken a significant hit, falling by 85.35% over the past year, although it has shown a strong return of 170.06% over the last three months.
Despite these challenges, analysts predict that the company will be profitable this year, according to another InvestingPro Tip. This forecast, along with the recent stock performance, suggests potential for recovery if Santech can address its compliance issues and improve its financial health.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Santech Holdings, providing deeper insights into the company's financial situation and market position.
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