Non-compliance Due to Market Capitalization and Stockholders' Equity Levels
SHANGHAI, July 25, 2019 /PRNewswire/ -- China Rapid Finance Limited (NYSE: XRF) (the "Company") today announced that it had received a letter from the New York Stock Exchange (the "NYSE") notifying it that the Company was not in compliance with the NYSE's continued listing standards because, as of May 31, 2019, the 30 trading-day average market capitalization of the Company's ADSs representing Class A ordinary shares was below $50 million and, as of September 30, 2018, the Company's stockholders' equity was less than $50 million. This notice does not have an immediate effect on the listing of the Company's ADSs representing Class A ordinary shares.
In accordance with NYSE rules, the Company has notified the NYSE that it intends to cure the deficiency. Under the NYSE rules, the Company has 90 days from the receipt of the notification to submit a plan advising the NYSE of definitive action the Company has taken, or is taking, that would bring the Company into conformity with the continued listed standards within 18 months of receipt of the notification. The Company intends to develop and submit a business plan to bring it into compliance with the listing standards within the required timeframe.
The NYSE will make a determination as to whether the Company has made a reasonable demonstration of an ability to come into conformity in the 18-month period. If the NYSE accepts the plan, the Company's ADSs representing Class A ordinary shares will continue to be listed and traded on the NYSE during the 18-month cure period, subject to the Company's compliance with other continued listing standards, and the Company will be subject to quarterly monitoring by the NYSE for compliance with the plan.
The NYSE notification does not affect the Company's business operations or its Securities and Exchange Commission reporting requirements.
About China Rapid Finance Limited
China Rapid Finance (NYSE: XRF) is a leading fintech company that operates an award-winning microcredit company and one of China's largest online consumer finance marketplaces. The Company enables affordable access to digital credit for one of the world's largest untapped consumer credit markets: China's mobile-active consumers. Facilitating millions of loans annually, the Company utilizes its proprietary, mobile-first technology to select consumers for its platform. China Rapid Finance was founded by Dr. Zane Wang, who has decades of consumer credit industry experience in the U.S. and China. For more information, please visit http://ir.crfchina.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "may," "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: unexpected difficulties in the Company's pursuit of its goals and strategies; the unexpected developments, including slow growth, in the consumer lending market; reduced demand for, and market acceptance of, the Company's products and services; difficulties keeping and strengthening relationships with borrowers or investors; difficulties of expanding data and channel partnerships, potentially costly servicing activities; competition in the consumer lending market; PRC governmental regulations and policies; and general economic and business conditions in the regions where the Company provides products and services. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to, the Securities and Exchange Commission. All information provided in this announcement and in the attachments is as of the date of this announcement, and the Company undertakes no duty to update such information except as required under applicable law.
Investor Relations Contact:
The Blueshirt Group
Gary T. Dvorchak, CFA
[email protected]
SOURCE China Rapid Finance
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