BEIJING, April 22, 2020
/PRNewswire/ -- Gridsum Holding Inc. ("Gridsum" or the "Company")
(NASDAQ:GSUM), a leading provider of cloud-based big-data analytics
and artificial intelligence ("AI") solutions in China, today announced that on April 17, 2020, it received a letter (the "Nasdaq
Letter") from the Listing Qualifications Department of The Nasdaq
Stock Market ("Nasdaq"), indicating that for the last thirty
consecutive business days, the bid price for the Company's American
depositary shares (the "ADSs"), each representing one Class B
ordinary share of the Company, had closed below the minimum
$1.00 per ADS required for continued
listing under Nasdaq Listing Rule 5550(a)(2).
The Nasdaq Letter has no immediate impact on the listing of the
ADSs on Nasdaq. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the
Company has been granted a 180-calendar day grace period to regain
compliance with the minimum bid price requirement. The continued
listing standard will be met if the closing bid price of the ADSs
is at least $1.00 per ADS for a minimum of ten consecutive business
days during such compliance period.
The Nasdaq Letter further indicated that Nasdaq filed an
immediately effective rule change with the U.S. Securities and
Exchange Commission on April 16,
2020. Pursuant to the rule change, Nasdaq tolled the
compliance period for bid price and market value of publicly held
shares requirements through June 30,
2020. As a result, the 180-day compliance period will be
reinstated on July 1, 2020, and
expire on December 28, 2020.
Accordingly, if at any time during the tolling period or the
180-day compliance period the closing bid price of the Company's
ADSs is at least $1.00 per ADS for a
minimum of ten consecutive business days, the Company will regain
compliance with Nasdaq Listing Rule 5550(a)(2), and Nasdaq will
provide the Company with written confirmation of compliance.
If the Company does not regain compliance with Rule 5550(a)(2)
by December 28, 2020, the Company may
be eligible for an additional 180-calendar day compliance period.
To qualify, the Company must submit to Nasdaq an application to
transfer its Nasdaq listing from the Nasdaq Global Select Market to
the Nasdaq Capital Market. Additionally, the Company would be
required to meet the continued listing requirement for market value
of publicly held shares and all other initial listing standards for
the Nasdaq Capital Market, with the exception of the bid price
requirement, and would need to provide written notice of its
intention to cure the deficiency during the second compliance
period by effecting a reverse stock split if necessary. However, if
Nasdaq concludes that the Company will not be able to cure the
deficiency, or if the Company determines not to submit a transfer
application or make the required representation, Nasdaq would
notify the Company that its securities will be subject to
delisting. In the event of such a notification, the Company may
appeal Nasdaq's determination to delist its securities, but there
can be no assurance that Nasdaq would grant any request for
continued listing.
The Company intends to monitor the bid price of its ADSs and
consider available options if its ADSs do not trade at a level
likely to result in the Company regaining compliance with Nasdaq
Listing Rule 5550(a)(2) by December 28,
2020. However, there can be no assurance that the Company
will be able to regain compliance or that Nasdaq will grant the
Company a further extension of time to regain compliance, if
necessary.
This announcement is made in compliance with Nasdaq Listing Rule
5810(b), which requires prompt disclosure of receipt of a
deficiency notification.
About Gridsum
Gridsum Holding Inc. (NASDAQ: GSUM) is a leading provider of
cloud-based big-data analytics and AI solutions for multinational
and domestic enterprises and government agencies in China. Gridsum's core technology, the Gridsum
Big Data Platform and the Gridsum Prophet: Enterprise AI Engine, is
built on a distributed computing framework and performs real-time
multi-dimensional correlation analysis of both structured and
unstructured data. This enables Gridsum's customers to identify
complex relationships within their data and gain new insights that
help them make better business decisions. The Company is named
"Gridsum" to symbolize the combination of distributed computing
(Grid) and analytics (sum). As a digital intelligence pioneer, the
Company's mission is to help enterprises and government
organizations in China use data in
new and powerful ways to make better-informed decisions and be more
productive.
For more information, please
visit http://www.gridsum.com/.
Safe Harbor Statement
This announcement contains forward-looking statements. These
forward-looking statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These statements can be identified by terminology such as
"may," "will," "expects," "anticipates," "aims," "future,"
"intends," "plans," "believes," "estimates," "likely to" and
similar statements. Forward-looking statements involve inherent
risks and uncertainties. Many factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to general economic conditions
in China, unexpected difficulties
in pursuit of our business strategy, unpredictable demand for
solutions we have developed, difficulties keeping and strengthening
relationships with existing customers or expanding our customer
base, availability of additional capital when needed, uncertainties
associated with our repayment of indebtedness and our ability to
maintain listing for trading on The Nasdaq Stock Market, and
uncertainty about the Proposal. Further information regarding these
and other risks is included in Gridsum's annual report on Form 20-F
and other reports filed with, or furnished to, the U.S. Securities
and Exchange Commission. All information provided in this press
release is as of the date of this press release, and Gridsum
undertakes no duty to update such information except as required
under applicable law.
Investor Relations
Gridsum
ir@gridsum.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
Email: carnell@christensenir.com
In U.S.
Mr. Tip Fleming
Phone: +1 917 412 3333
Email: tfleming@christensenir.com
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SOURCE Gridsum Holding Inc.