China HGS Real Estate, Inc. (NASDAQ:HGSH) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On June 21, 2019, NASDAQ notified the company that the bid price of its listed securities had closed at less than $1 per share over the previous 30 consecutive business days, and, as a result, did not comply with Listing Rule 5550(a)(2). Therefore, in accordance with Listing Rule 5810(c)(3)(A), the company was provided 180 calendar days, or until December 18, 2019, to regain compliance with the Rule.
Subsequently, on December 19, 2019, the company was provided an additional 180 calendar day compliance period, or until June 15, 2020, to demonstrate compliance. However, on April 16, 2020, given the extraordinary market conditions, NASDAQ had determined to toll the compliance periods for bid price and market value of publicly held shares requirements through June 30, 2020.1 Accordingly, the company was provided until August 31, 2020 to regain compliance.
The company did not regain compliance with Listing Rule 5550(a)(2) by August 31, 2020. Accordingly, its securities will be delisted from the NASDAQ Capital Market. The company’s common stock will begin trading on the NASDAQ Capital Market on a split-adjusted basis on Wednesday, September 2, 2020.
The company intends to appeal of the determination made by NASDAQ to the procedures set forth in the Nasdaq Listing Rule 5800 Series. A hearing request will stay the suspension of the company’s securities and the filing of the Form 25-NSE pending the Panel’s decision.
About China HGS Real Estate, Inc. (NASDAQ:HGSH)
China HGS Real Estate Inc., formerly China Agro Sciences Corp., through its subsidiaries and variable interest entity (VIE), engages in real estate development, primarily in the construction and sale of residential apartments, car parks and commercial properties. The Company’s projects located in Hanzhong City are Mingzhu Garden-Mingzhu Nanyuan, Mingzhu Beiyuan, Oriental Pearl Garden, Mingzhu Xinju and Liangzhou road related projects. In Yang County, its projects are Yangzhou Pearl Garden and Yangzhou Palace. Its Mingzhu Nanyuan project consists of multi-layer residential buildings and sub-high-rise and high-rise residential buildings with commercial shops on the first floors. Its Oriental Pearl Garden project consists of approximately 10 high-rise residential buildings with commercial shops on the first and second floors. Its Yangzhou Pearl Garden project consists of multi-layer residential buildings and sub-high-rise residential buildings with commercial shops on the first floors.