BEIJING - ReTo Eco-Solutions, Inc. (NASDAQ:RETO), a Chinese provider of ecological and IoT technology services, has been notified by the Nasdaq Stock Market of non-compliance with its Listing Rule 5550(b)(1), due to insufficient stockholders' equity. The company disclosed a negative stockholders' equity of approximately $0.83 million as of June 30, 2023, falling short of the required $2.5 million minimum.
The warning, issued on December 28, 2023, does not immediately affect ReTo's listing on the Nasdaq Capital Market. However, the company must submit a compliance plan by February 12, 2024. If Nasdaq accepts the plan, ReTo could have up to 180 days from the notification date to meet the criteria.
ReTo, established in 1999, specializes in environmental restoration and waste treatment, producing eco-friendly construction materials from mining waste and offering related equipment and services. The company's operations reportedly remain unaffected by the Nasdaq's notice, and it is exploring options to regain compliance.
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