LAIX Inc. (“LAIX” or the “Company”) (NYSE:LAIX), an artificial intelligence (AI) company in China that creates and delivers products and services to popularize English learning, today announced that it has received a letter (the “Letter”) from the New York Stock Exchange (the “NYSE”) dated September 8, 2021 and further e-mail communication on the same date, notifying the Company that (i) it is below compliance standards due to the Company’s total market capitalization and stockholder’s equity, (ii) the due date for the Company to submit a business plan that demonstrates compliance is December 8, 2021 and (iii) the applicable cure period for the Company to regain compliance expires on March 8, 2023.
Pursuant to applicable NYSE continued listing standards, a company would be considered “below criteria” by the NYSE if its total market capitalization is less than $50 million over a 30 trading-day period and its stockholders’ equity is less than $50 million. A review of the current financial condition of the Company by NYSE shows that, as of September 7, 2021, the Company’s 30 trading-day average market capitalization was approximately $49.7 million and its last reported stockholders’ equity as of June 30, 2021 was approximately $(104.7) million. Accordingly, the Company is now subject to the procedures as set forth in Sections 801 and 802 of the NYSE Listed Company Manual, and is required to respond within 90 days of the Letter with a business plan that demonstrates compliance with the continued listing standard within 18 months of receipt of the Letter. The business plan will be reviewed for final disposition by the Listings Operations Committee of the NYSE.
To address this issue, LAIX intends to comply with the applicable procedures and is still considering its options to regain compliance.
