NEW YORK - Abits Group Inc (NASDAQ:ABTS), a U.S.-based bitcoin mining company, disclosed on Monday that it has been notified by Nasdaq of non-compliance with the exchange's minimum bid price rule. The notification, dated April 12, 2024, was triggered by the company's shares closing below the $1.00 threshold for 30 consecutive business days.
The Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share. Despite the deficiency notice, Abits Group's shares will continue to trade on the Nasdaq without interruption under the ticker "ABTS."
Abits Group has been granted a compliance period until October 9, 2024, to meet the minimum bid price requirement. To regain compliance, the company's share price must close at $1.00 or higher for at least 10 consecutive business days during this period. If Abits Group fails to achieve compliance by the deadline, it may be eligible for an additional 180-day grace period.
Abits Group was incorporated in the British Virgin Islands in May 2021 and operates in Tennessee through its subsidiary ABIT USA, Inc., as well as in Beijing and Hong Kong, China.
The press release included forward-looking statements regarding the company's expectations for its business and the bitcoin mining and Internet media marketing industries. These statements are based on current beliefs and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially.
The company's financial officer, Wanhong Tan, is the point of contact for further information. The press release statement serves as the source for the details provided in this report.
InvestingPro Insights
As Abits Group Inc (NASDAQ:ABTS) navigates the challenges of meeting Nasdaq's minimum bid price rule, investors may benefit from insights into the company's financial health and stock performance.
According to recent data from InvestingPro, ABTS holds a market capitalization of $28.09 million and has experienced a significant revenue growth rate of 206.92% over the last twelve months as of Q2 2023. Despite this impressive growth, the company's gross profit margin was deeply negative at -250.84%, reflecting the costs outweighing revenue.
InvestingPro Tips indicate that ABTS has more cash than debt on its balance sheet, which could provide some financial stability. However, the company has not been profitable over the last twelve months, and its stock price has shown considerable volatility.
In fact, the price has fallen significantly by 36.26% over the last three months, and the stock is currently trading at 38.81% of its 52-week high. The current price, as of the previous close, stood at $0.75, which is below the Nasdaq minimum bid requirement.
Investors considering ABTS should note that the company does not pay dividends, and its stock price has performed poorly over the last decade. For those looking for a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ABTS, which could provide further insights into the company's performance and prospects. Additionally, those interested in a yearly or biyearly Pro and Pro+ subscription can use the coupon code PRONEWS24 to get an additional 10% off.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.