Fangdd Network Group Ltd. (DUO) slightly gained in the pre-marker after the company announced receiving a notice from NASDAQ. The stock of DUO traded at $0.40 gaining more than 7.5% from the previously closed value. At the end of the last trading session, the stock of DUO closed at $0.37. The volume of the stock traded in the last trading session was around 1.01 million shares.
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Reason for the DUO stock gain
Fangdd Network Group Ltd. (DUO) announced in a press release today about a notification received from the NASDAQ on January 4, 2022. According to the notice, Fangdd Network is currently not in compliance with the minimum bid price required according to Nasdaq Listing Rule 5450(a)(1). In the last 30 consecutive days, the company’s American depositary shares (ADSs) closed lower than US$1 per share from November 19, 2021, to January 3, 2022. To regain compliance, Fangdd Network has been given a grace period of 180 days by NASDAQ that expires on July 5, 2022. They will have to maintain a bid price of at least $1 for consecutive 10 days in the 180 days’ time period. . If they do not regain compliance with the NASDAQ Listing Rule within 180 calendar days, in that case, they will be given a second chance.
The Company plans to watch the closing bid price of its American depositary shares ADSs between now and July 5, 2022. They are planning to consider the possible way to fix the shortage and regain compliance with the NASDAQ Listing Rule’s minimum bid price requirement within the allotted 180 days. In the meantime their American depositary shares ADSs will continue to be listed and trade on the NASDAQ Capital Market during this period, having no effect of the notice from NASDAQ.
Effect on the stock
After receiving a notice from NASDAQ the stock of DUO jumped slightly in the pre-market. This could be due to some investors taking a risk to invest in the stock during its dip. A slight increase in the volume can cause a little bit increase in the value to increase its demand.
Conclusion
Fangdd Network Group Ltd. (DUO) will constantly monitor its share price and will try its best to regain the compliance with NASDAQ listing rule. New development in the business could play a crucial role in the process.
