(ATF) Online travel agent and ticketing site Tuniu faces delisting from Nasdaq after its share price failed to breach the exchange’s minimum threshold for more than a month.
Nasdaq’s listing qualification department notified the that the Nanjing, China-based company's closing price for the past 30 consecutive trading days was below the exchange’s minimum purchase price of $1. That would trigger the delisting process.
Listed in 2014 with a share price of $9. Its closing price on May 22 was 3.3% lower at $0.76. It slid further to $0.75 in after trade, racking up 35 consecutive trading day below $1.
Tuniu's total market value is now just $93.43 million, almost 97% lower than its highest value of US$3.07 billion.
The company explained that the notification letter will not cause the company to withdraw from the market immediately.
Guo Ren, global partner of Beijing Pacific Century (Shanghai) Law Firm, told the media: "Tuniu now faces two possible outcomes: active delisting or passive delisting, of which active delisting includes board transfer, privatisation and merger. At present, it seems that Tuniu is most likely to be merged."