BEIJING, May 9, 2023
/PRNewswire/ -- Gravitas Education Holdings, Inc. (NYSE: GEHI)
("GEHI" or the "Company"), a leading early childhood education
service provider in China, today
announced that it has received a letter dated May 8, 2023 (the "Letter") from the New York
Stock Exchange (the "NYSE"), notifying the Company that it is below
compliance standards due to the Company's total market
capitalization and stockholders' equity.
Pursuant to applicable NYSE continued listing standards, a
company would be considered "below criteria" by the NYSE if its
total market capitalization is less than US$50 million over a 30 trading-day period and
its stockholders' equity is less than US$50
million. A review of the current financial condition of the
Company by the NYSE shows that, as of May 5,
2023, the Company's 30 trading-day average market
capitalization was approximately US$21.2
million and its last reported stockholders' equity as of
December 31, 2022, was approximately
US$25.9 million. Accordingly, the
Company is now subject to the procedures as set forth in Sections
801 and 802 of the NYSE Listed Company Manual and is required to
respond within 90 days of the Letter with a business plan that
demonstrates compliance with the continued listing standard within
18 months of receipt of the Letter. The business plan will be
reviewed for final disposition by the Listings Operations Committee
of the NYSE.
To address this issue, the Company intends to comply with the
applicable procedures and is considering its options to regain
compliance.
About Gravitas Education Holdings, Inc.
Founded on the core values of "Care" and "Responsibility,"
"Inspire" and "Innovate," Gravitas Education Holdings, Inc.
(formerly known as RYB Education, Inc.) is a leading early
childhood education service provider in China. Since opening
its first play-and-learn center in 1998, the Company has grown and
flourished with the mission to provide high-quality, individualized
and age-appropriate care and education to nurture and inspire each
child for his or her betterment in life. During its two
decades of operating history, the Company has built itself into a
well-recognized education brand and helped bring about many new
educational practices in China's
early childhood education industry. GEHI's comprehensive
early childhood education solutions meet the needs of children from
infancy to 6 years old through structured courses at kindergartens
and play-and-learn centers, as well as at-home educational products
and services.
Safe Harbor Statement
This announcement contains forward-looking statements.
These statements are made under 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," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "confident" and similar statements.
Statements that are not historical facts, including statements
about the Company's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks
and uncertainties. A number of factors could cause actual
results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the Company's brand recognition and market reputation;
student enrollment in the Company's teaching facilities; the
Company's growth strategies; its future business development,
results of operations and financial condition; trends and
competition in China's early childhood education market;
changes in its revenues and certain cost or expense items; the
expected growth of the Chinese early childhood education market;
Chinese governmental policies relating to the Company's industry
and general economic conditions in China. Further
information regarding these and other risks is included in the
Company's filings with the SEC. All information provided in
this press release and in the attachments is as of the date of this
press release, and the Company undertakes no obligation to update
any forward-looking statement, except as required under applicable
law.
CONTACT: Gravitas Education Holdings, Inc., Investor
Relations, E-mail: ir@geh.com.cn
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SOURCE Gravitas Education Holdings Inc.
