Questioned as a "shell company", Ruisi Education received a non-compliance notice from NASDAQ

Intern journalist | Chen Zhenfang

Due to the failure to submit the form in time and being questioned as a "shell company", Ruisi Education (NASDAQ: REDU) received a non-compliance notice from NASDAQ.

On October 8, 2021, Rhes Education received a delisting warning from NASDAQ due to a stock price of less than $1 per share for 30 consecutive working days.

On January 11, Ruisi Education received a warning from NASDAQ that it would be removed from the securities unless a panel hearing was held in time.

On December 30, 2021, Ruisi Education sold all its assets in China and divested it from listed companies and overseas capital. A "shell company" as defined in NASDAQ Listing Rule 5101.

A shell company is a listed company that has ceased its normal business operations for various reasons, but still retains the identity and qualifications of a listed company.

In addition, the Company failed to file its interim balance sheet and income statement with the Securities and Exchange Commission in a timely manner as at June 30, 2021.

On the day of receipt of the warning, Ruisi Education filed its interim balance sheet and income statement to the SEC for the year ended June 30, 2021.

At the hearing, Ruisi Education said it was actively pursuing strategic business opportunities, including revenue-generating operational activities.

On January 6, the Board of Directors of Ruisi Education received a non-binding proposal for an electric vehicle company that would contribute to the electric vehicle ecosystem business in exchange for newly issued shares. The two sides agreed to negotiate exclusively for 28 days from January 17.

Unless required by law, there can be no assurance that the proposed transaction or any other similar transaction will be approved or completed, and the Company undertakes no obligation to provide any up-to-date information regarding the proposed transaction or any other transaction.

A week ago, Ruisi Education disclosed the financial results of the second quarter of 2021, with revenue of 257 million yuan, an increase of 55.6% year-on-year; a net loss of 52.662 million yuan, a loss of 9.25% year-on-year.

It is worth noting that since the "double reduction", Ruisi Education has frequently undergone personnel changes, privatization and delisting actions have continued, and the company plans to transform quality education, and it still needs time to test its business capabilities.

As of the close of trading on January 18, Eastern Time, Ruisi Education closed at $0.53 per share, up 2.5%, with a total market value of $30.1054 million.