Qilian International Holding Group Ltd (NASDAQ:QLI) ("Qilian" or the "Company"), a China-based pharmaceutical and chemical products manufacturer, received notification (the "Notification Letter") from The Nasdaq Stock Market LLC ("Nasdaq"), dated July 13, 2023, that the Company is not in compliance with the minimum bid price requirement set forth in the Nasdaq Listing Rules for continued listing on The Nasdaq Global Market (the "Nasdaq Global Market"). The Notification Letter is only a notification of deficiency and not a notice of delisting.
Nasdaq Listing Rule 5450(a)(1) requires listed securities to maintain a minimum bid price of US$1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company's ordinary shares for the 30 consecutive business days from May 30, 2023 to July 12, 2023, the Company no longer meets the minimum bid price requirement.
The Notification Letter does not impact the Company's listing on the Nasdaq Global Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided 180 calendar days, or until January 9, 2024 (the "Compliance Period"), to regain compliance with Nasdaq Listing Rule 5450(a)(1). To regain compliance, the Company's ordinary shares must have a closing bid price of at least US$1.00 for a minimum for 10 consecutive business days, and shall not have a closing bid price of $0.10 or less for ten consecutive trading days during the Compliance Period. In the event the Company does not regain compliance by January 9, 2024, the Company may be eligible for additional time to regain compliance or may face delisting, as the case may be.
The Company's business operations are not affected by the receipt of the Notification Letter. The Company intends to monitor the closing bid price of its ordinary shares and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse share split of its outstanding ordinary shares, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.