Universe Pharmaceuticals INC faces delisting from Nasdaq due to stock price non-compliance, plans to appeal the decision.
Quiver AI Summary
Universe Pharmaceuticals INC announced it received a delisting notice from Nasdaq due to its ordinary shares trading below $1 for 30 consecutive days, violating Nasdaq Listing Rule 5550(a)(2). The company is ineligible for a compliance period due to a recent reverse stock split and must appeal the delisting by February 5, 2025, to avoid suspension of trading, which would occur on February 7 if no appeal is made. The company plans to request a hearing to contest the delisting and is exploring options to regain compliance. Universe Pharmaceuticals specializes in traditional Chinese medicine and distributes various healthcare products across China.
Potential Positives
- The Company plans to appeal the delisting determination from Nasdaq, which could potentially allow it to remain listed.
- The request for an appeal will stay the suspension of the Company's securities, providing temporary continuity for trading.
- The Company is exploring options, including a reverse stock split, to regain compliance with Nasdaq listing rules.
- Universe Pharmaceuticals INC has a presence in 30 provinces in China, indicating a broad market reach for its products.
Potential Negatives
- The Company is at risk of being delisted from Nasdaq due to its shares trading below $1 for 30 consecutive business days, which reflects declining market confidence.
- The Company does not qualify for a compliance period to regain Nasdaq listing due to a recent reverse stock split, limiting its options to rectify the situation.
- If the Company fails to appeal by the deadline, its shares will be immediately suspended from trading, potentially resulting in loss of investment for shareholders.
FAQ
What prompted Universe Pharmaceuticals to face delisting from Nasdaq?
Universe Pharmaceuticals is facing delisting due to its ordinary shares trading below $1 for 30 consecutive business days.
What is the deadline for Universe Pharmaceuticals to appeal Nasdaq's delisting?
The Company has until February 5, 2025, to request an appeal of the delisting determination.
What happens if the appeal is not filed by the deadline?
If no appeal is filed by February 5, 2025, trading will be suspended on February 7, 2025.
How does a reverse stock split impact the delisting process?
A reverse stock split disqualifies the Company from the normal compliance period to regain listing requirements.
What products does Universe Pharmaceuticals offer?
Universe Pharmaceuticals specializes in traditional Chinese medicine, biomedical drugs, medical instruments, and dietary supplements.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$UPC Hedge Fund Activity
We have seen 8 institutional investors add shares of $UPC stock to their portfolio, and 1 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- UBS GROUP AG added 237,223 shares (+4529.7%) to their portfolio in Q3 2024, for an estimated $57,882
- MML INVESTORS SERVICES, LLC added 234,260 shares (+inf%) to their portfolio in Q3 2024, for an estimated $57,159
- TWO SIGMA SECURITIES, LLC added 90,371 shares (+inf%) to their portfolio in Q3 2024, for an estimated $22,050
- RENAISSANCE TECHNOLOGIES LLC added 39,267 shares (+inf%) to their portfolio in Q3 2024, for an estimated $9,581
- QUADRATURE CAPITAL LTD added 24,891 shares (+inf%) to their portfolio in Q3 2024, for an estimated $6,073
- XTX TOPCO LTD added 14,820 shares (+inf%) to their portfolio in Q3 2024, for an estimated $3,616
- MILLENNIUM MANAGEMENT LLC added 13,809 shares (+inf%) to their portfolio in Q3 2024, for an estimated $3,369
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Full Release
Ji’an, Jiangxi, China, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Universe Pharmaceuticals INC (the “Company”) (Nasdaq: UPC), a pharmaceutical producer and distributor in China, today announced that the Company received a letter from the Nasdaq Stock Market LLC (“Nasdaq”) on January 29, 2025, notifying the Company that the Nasdaq staff has determined to delist the Company’s ordinary shares from The Nasdaq Capital Market (the “Delisting Determination”), because the bid price of the Company’s listed securities has closed at less than $1 per share over the previous 30 consecutive business days, and therefore no longer complies with the Nasdaq Listing Rule 5550(a)(2) (the “Rule”). Normally, a company would be afforded a 180-calendar day period to demonstrate compliance with the Rule. However, pursuant to the Nasdaq Listing Rule 5810(c)(3)(A)(iv), the Company is not eligible for any compliance period specified in Nasdaq Listing Rule 5810(c)(3)(A) due to the fact that the Company effected a reverse stock split on November 18, 2024, or within the prior one-year period.
The Company was provided until February 5, 2025 to request an appeal of the Delisting Determination to the hearing panel. The Company intends to request such hearing to appeal the Delisting Determination before that date, which will stay the suspension of its securities from the date of the request, during which time such securities will continue to be listed on The Nasdaq Capital Market.
If the Company fails to request an appeal of the Delisting Determination by February 5, 2025, trading of the Company’s ordinary shares will be suspended at the opening of business on February 7, 2025, and a Form 25-NSE will be filed with the U.S. Securities and Exchange Commission, which will remove the Company’s securities from listing and registration on The Nasdaq Stock Market.
The Company is considering all potential options available to it to regain compliance with the aforementioned rules, including seeking shareholders’ approval for a reverse stock split.
About Universe Pharmaceuticals INC
Universe Pharmaceuticals INC, headquartered in Ji’an, Jiangxi, China, is a pharmaceutical producer and distributor in China. The Company specializes in the manufacturing, marketing, sales and distribution of traditional Chinese medicine derivatives products targeting the elderly with the goal of addressing their physical conditions in the aging process and to promote their general well-being. The Company also distributes and sells biomedical drugs, medical instruments, Traditional Chinese Medicine Pieces, and dietary supplements manufactured by third-party pharmaceutical companies. Currently, the Company’s products are sold in 30 provinces of China. For more information, visit the company’s website at
http://www.universe-pharmacy.com/
.
Forward-Looking Statements
All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the U.S. Securities and Exchange Commission.
Contact:
Ms. Lin Yang,
Chief Financial Officer of Universe Pharmaceuticals INC
lin.yang@universe-pharmacy.com
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
