On December 17, 2019, Future Fintech Group Inc., announced that it received the notification letter from the listing qualification staff of NASDAQ, stating that they have extended the time for the company to regain compliance with the listing rule of NASDAQ. On September 4, 2019, the organization received written notice that it did not meet the requirements of maintaining a minimum of $2,500,000 in the equity of the stakeholder. Fulfillment of this criteria would have helped Future Fintech Inc. to continue its listing on the NASDAQ Capital Market.
The company even did not meet the alternative market value of the listed securities of around $35 million under the listing rule of NASDAQ 5550(b)(2) or the income from the continuing operations of $500,000 in the recently completed fiscal year or in the two of the last three completed fiscal year in the recent years under the 5550(b)(3), another NASDAQ listing rule.
The notification letter from the NASDAQ provided the company with a deadline until September 18, 2019, for submitting the required plan and regaining compliance. If the plan gets accepted, then NASDAQ could grant the company an extension of 180 days from the date of the NASDAQ letter for demonstrating compliance.
The company submitted the plan of compliance on September 18, 2019, and other documents on November 11, 2019, and December 12, 2019. Future Fintech Group Inc. has signed a share transfer agreement for selling its fruit juice business and the related subsidiaries of HeDeTang Holdings (HK) Ltd. HK Ltd. will submit the transaction for the approval of the shareholders at the meeting of the shareholders. The sale is seen to divest $148 million in the impairment charges of the asset. It contributed to the stakeholder’s equity deficit of $86.7 million till December 31, 2018.
The company intends for entirely complying with the exception that has been granted by the staff for completing the sale transaction before or on February 28, 2020.
Future Fintech Group Inc.
Future Fintech Group Inc., the company incorporated in Florida, is engaged in the blockchain-based e-commerce businesses and fruit juice. The company operates as the incubator for the application projects which are using the blockchain technology. It has been developing the blockchain technology for the various B2C and B2B real-life applications, which includes the marketing, distribution, and sale of the consumer products. The company also develops the financial technology business for staying ahead in the ever-changing industry.