AirNet Announces Receipt of Nasdaq’s Determination to Grant Extension to Regain Compliance
May 08 2024 - 4:00AM
AirNet Technology Inc., formerly known as AirMedia Group Inc.
(“AirNet” or the “Company”) (Nasdaq: ANTE), today announced that it
received a notification letter dated April 29, 2024 from the
Listing Qualifications Department of The Nasdaq Stock Market Inc.
(the “Nasdaq”) notifying that Nasdaq has determined to grant the
Company an extension to regain compliance with the Nasdaq Listing
Rule 5550(b)(1) for continued listing (the “Rule”).
As previously reported, on January 5, 2024, the Company
received written notice from Nasdaq notifying the Company that,
based on the Company’s stockholders’ equity as reported in the
Company’s Form 6-K dated December 28, 2023, the Company
did not meet the minimum stockholders’ equity requirement for
continued listing due to its failure to maintain a minimum of $2.5
million in stockholders’ equity (“Minimum Stockholders’ Equity
Requirement”), or the alternatives of market value of listed
securities or net income from continuing operations for continued
listing under the Rule. On February 8, 2024, the Company submitted
to Nasdaq its plan to regain compliance with the Minimum
Stockholders’ Equity Requirement, as supplemented with additional
materials on March 10, 2023 (the “Plan”). Based on the Plan, Nasdaq
has determined to grant the Company an extension to regain
compliance with the Rule and provided the Company with two
alternatives to evidence compliance with the Rule. Pursuant to the
first alternative, the Company must furnish to the SEC and Nasdaq a
publicly available report including: (1) a disclosure of Nasdaq’s
deficiency letter and the specific deficiencies cited, (2) a
description of the completed transaction or event that enabled the
Company to satisfy the Minimum Stockholders’ Equity Requirement,
(3) an affirmative statement that, as of the date of such publicly
available report, the Company believes it has regained compliance
with the Minimum Stockholders’ Equity Requirement based upon the
specific transaction or event referenced in (2), and (4) a
disclosure stating that Nasdaq will continue
to monitor the Company’s ongoing compliance with the
Minimum Stockholders’ Equity Requirement and, if at the time of its
next periodic report the Company does not evidence compliance, that
it may be subject to delisting.
As previously disclosed, on February 8, 2024, Wealthy
Environment Limited, a company incorporated in the British Virgin
Islands, which is wholly owned by Mr. Herman Man Guo, entered
into a share subscription agreement with the Company, pursuant to
which the Company transferred 4,448,847 ordinary shares, par value
$0.04 per share (the “Shares”), that were previously held by and in
the Company’s name as treasury shares and issued an additional
2,118,584 Shares to Wealthy Environment Limited on March 6,
2024. The aggregate subscription price for the 6,567,431 Shares was
approximately US$7.6 million in cash. In February 2024, the Company
entered into an equity transfer agreement with an unaffiliated
third party, pursuant to which the Company disposed of all the
33.67% of equity interests held by Yuehang Sunshine Network
Technology Group Co., Ltd. in an equity investee for an
aggregate consideration of RMB197.0 million. On April 15, 2024, the
Company completed a private placement of 3,372,788 Shares for an
aggregate subscription amount of US$5.7 million with certain
investors.
As a result of the above three transactions, the Company
believes that, as of the date of this press release, it has
regained compliance with the Minimum Stockholders’ Equity
Requirement for continued listing on the Nasdaq Capital Market
under the Rule. The Company understands that Nasdaq will continue
to monitor the Company’s ongoing compliance with the
Minimum Stockholders’ Equity Requirement and, if at the time of its
next periodic report the Company does not evidence compliance, it
may be subject to delisting.
Forward-Looking Statements
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,”
“expects,” “is expected to,” “anticipates,” “aim,” “future,”
“intends,” “plans,” “believes,” “are likely to,” “estimates,”
“may,” “should” and similar expressions. The Company may also make
written or oral forward-looking statements in its reports filed
with, or furnished to, the U.S. Securities and Exchange Commission,
in its annual reports to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Forward-looking statements
are based upon management’s current expectations and current market
and operating conditions, and involve inherent risks and
uncertainties, all of which are difficult to predict and many of
which are beyond the Company’s control, which may cause its actual
results, performance or achievements to differ materially from
those in the forward-looking statements. Further information is
included in the Company’s filings with the U.S. Securities and
Exchange Commission. All information provided in this announcement
is as of the date of this announcement, and the Company does not
undertake any obligation to update any forward-looking statement as
a result of new information, future events or otherwise, except as
required under law.
Contact
Penny Pei Investor Relations AirNet Technology
Inc. Tel:
+86-10-8460-8678 Email: penny@ihangmei.com
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