Visionary Education Technology Holdings Group Inc. (VEDU) experienced a surge in its stock price during after-market trading on Thursday, with a change percentage of 15.08%. This increase comes in response to the company’s receipt of a notification from the Nasdaq Stock Market LLC regarding a minimum bid price deficiency.
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Nasdaq Listing Rule 5550(a)(2) stipulates that listed securities must maintain a minimum bid price of US$1.00 per share, and the company’s closing bid price for the 30 consecutive business days from May 1, 2023, to June 13, 2023, no longer meets this requirement.
However, it’s important to note that the notification is a deficiency notice and does not immediately result in delisting or impact the trading of the company’s securities on the Nasdaq Capital Market.
The company has been given 180 calendar days, until December 11, 2023, to regain compliance with the minimum bid price requirement. To achieve compliance, VEDU’s common shares must have a closing bid price of at least US$1.00 for a minimum of 10 consecutive business days.
Failure to regain compliance by the specified deadline could lead to delisting, although the company may be eligible for additional time or alternatives to regain compliance.
The recent notification does not affect VEDU’s ongoing business operations. The company intends to closely monitor the closing bid price of its common shares and may explore various options, such as a reverse share split, to meet the Nasdaq Listing Rules’ minimum bid price requirement.
Technical Overview
- VEDU’s year high stands at $2.92, while its year low was $0.36.
- The market capitalization of the company is currently $19.78 million.
- The 50-day moving average price is $0.64, and the 200-day moving average price is $0.77.
- VEDU is listed on the NASDAQ exchange.
- The stock’s volume reached 1.24 million, with an average volume of 479,904.
- The stock opened at $0.55 and closed at $0.49 in the previous session.
- The company’s earnings per share (EPS) for the latest period was -$0.1, resulting in a negative price-to-earnings (P/E) ratio of -5.04.
- Notably, no earnings announcement date and time have been reported.
Stock Performance
- In terms of short-term price changes, VEDU experienced a 2.86% increase over the past day and a significant 29.73% increase over the past five days.
- However, over the longer term, the stock’s performance has been challenging, with declines of -21.25%, -49.6%, and -18.05% over the past month, three months, and six months, respectively.
- On a year-to-date basis, VEDU has shown resilience, posting a positive 22.96% change.
- Looking further back, the stock has exhibited significant decline over the past one, three, five, and ten years, with changes of -59.68%, -97.98%, -97.98%, and -97.98% respectively.
Company Financials
- Based on the financial data for the fiscal year ending on March 31, 2022, VEDU reported a revenue of $5.25 million.
- The company’s gross profit amounted to $2.61 million, with a gross profit ratio of 0.5.
- Operating expenses were reported at $1.09 million, resulting in an operating income of $1.54 million and an operating income ratio of 0.29.
- VEDU’s net income for the period was -$56,474, with a net income ratio of -0.01.
- The company’s earnings per share (EPS) and diluted EPS were both reported as -$0.0, based on weighted average shares outstanding of 39.25 million.
- Other financial ratios and metrics include a price-to-earnings ratio (TTM) of -350.29, a current ratio (TTM) of 0.12, and a debt-to-equity ratio (TTM) of 5.75.
Conclusion
While Visionary Education Technology Holdings Group Inc. (VEDU) has experienced a surge in its stock price following the Nasdaq notification, investors should carefully consider the company’s current compliance status and its potential implications for future trading.
The company has a specified timeframe to regain compliance with the minimum bid price requirement and has expressed its intent to explore available options.
