Zepp Health Corporation Faces NYSE Non-compliance Letter Over ADS Trading Price
May 15, 2024, 7:43 am
Zepp Health Corporation, a renowned global leader in smart wearables and health technology, recently found itself in a challenging situation as it received a letter from the New York Stock Exchange (NYSE) regarding its American depositary shares (ADSs) trading price. The NYSE notified Zepp Health Corporation that it is below compliance standards, citing Section 802.01C of the NYSE's Listed Company Manual, which states that a company will be considered below compliance standards if the average closing price of its security falls below US$1.00 over a consecutive 30 trading-day period.
The company now faces a crucial six-month Cure Period to regain compliance with the minimum share price requirement. During this period, Zepp Health Corporation must ensure that on the last trading day of any calendar month, the closing share price of its ADSs is at least US$1.00 and that there is an average closing share price of at least US$1.00 over the 30 trading-day period ending on the last trading day of that month. Failure to meet these requirements by the end of the Cure Period could result in the NYSE initiating suspension and delisting procedures.
Despite this challenging situation, Zepp Health Corporation has assured the NYSE of its intention to cure the deficiency within the specified timeframe. The company is actively considering all available options to address the non-compliance issue, including the possibility of implementing a reverse share split, subject to board and shareholder approval.
It is important to note that the NYSE notice does not have an immediate impact on the listing of the company's ordinary shares on the exchange, provided that Zepp Health Corporation continues to comply with the NYSE's other listing requirements. Furthermore, the non-compliance issue does not affect the company's ongoing business operations or its reporting obligations under the rules of the U.S. Securities and Exchange Commission.
Zepp Health Corporation, known for its leading consumer brands such as Amazfit, Zepp Clarity, and Zepp Aura, remains dedicated to empowering users worldwide to live their healthiest lives. The company's proprietary Zepp Digital Management Platform, which includes cutting-edge technologies like Zepp OS, AI chips, biometric sensors, and data algorithms, delivers actionable insights and guidance to help users achieve their wellness goals.
With a track record of shipping over 200 million units and products available in more than 90 countries and regions, Zepp Health Corporation has solidified its position as a global health technology leader. Originally founded as Huami Corp. in 2013, the company rebranded as Zepp Health Corporation in February 2021 to emphasize its focus on health and wellness across diverse cultures and languages.
In conclusion, while facing the challenge of NYSE non-compliance, Zepp Health Corporation remains committed to overcoming this obstacle and continuing its mission of empowering individuals to optimize their health, fitness, and wellness journeys. The company's dedication to innovation and user-centric solutions positions it as a key player in the evolving landscape of smart wearables and health technology.
The company now faces a crucial six-month Cure Period to regain compliance with the minimum share price requirement. During this period, Zepp Health Corporation must ensure that on the last trading day of any calendar month, the closing share price of its ADSs is at least US$1.00 and that there is an average closing share price of at least US$1.00 over the 30 trading-day period ending on the last trading day of that month. Failure to meet these requirements by the end of the Cure Period could result in the NYSE initiating suspension and delisting procedures.
Despite this challenging situation, Zepp Health Corporation has assured the NYSE of its intention to cure the deficiency within the specified timeframe. The company is actively considering all available options to address the non-compliance issue, including the possibility of implementing a reverse share split, subject to board and shareholder approval.
It is important to note that the NYSE notice does not have an immediate impact on the listing of the company's ordinary shares on the exchange, provided that Zepp Health Corporation continues to comply with the NYSE's other listing requirements. Furthermore, the non-compliance issue does not affect the company's ongoing business operations or its reporting obligations under the rules of the U.S. Securities and Exchange Commission.
Zepp Health Corporation, known for its leading consumer brands such as Amazfit, Zepp Clarity, and Zepp Aura, remains dedicated to empowering users worldwide to live their healthiest lives. The company's proprietary Zepp Digital Management Platform, which includes cutting-edge technologies like Zepp OS, AI chips, biometric sensors, and data algorithms, delivers actionable insights and guidance to help users achieve their wellness goals.
With a track record of shipping over 200 million units and products available in more than 90 countries and regions, Zepp Health Corporation has solidified its position as a global health technology leader. Originally founded as Huami Corp. in 2013, the company rebranded as Zepp Health Corporation in February 2021 to emphasize its focus on health and wellness across diverse cultures and languages.
In conclusion, while facing the challenge of NYSE non-compliance, Zepp Health Corporation remains committed to overcoming this obstacle and continuing its mission of empowering individuals to optimize their health, fitness, and wellness journeys. The company's dedication to innovation and user-centric solutions positions it as a key player in the evolving landscape of smart wearables and health technology.