Nasdaq Hearing Panel Grants AnPac Bio’s Request to Transfer Securities from The Nasdaq Global Market to The Nasdaq Capital Market

On May 6, 2022 AnPac Bio-Medical Science Co., Ltd. ("AnPac Bio," the "Company" or "we") (ANPC), a biotechnology company with operations in the United States and China focused on early cancer screening and detection, reported that the Nasdaq Hearings Panel (the "Panel") has granted the request of AnPac Bio to transfer the Company’s American Depositary Shares from The Nasdaq Global Market to The Nasdaq Capital Market, effective May 6, 2022 and to continue its listing on The Nasdaq Stock Market, subject to various conditions (Press release, Anpac Bio, MAY 6, 2022, View Source [SID1234613778]). The Nasdaq Capital Market has lower listing requirements than those of The Nasdaq Global Market, while both are a part of The Nasdaq Stock Market.

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Under the terms of the decision, the Panel has stated that on or before May 31, 2022, the Company must evidence compliance with The Nasdaq Capital Market’s $2.5 million stockholder’s equity requirement, by filing a Form 6-K with the U.S. Securities and Exchange Commission, containing: 1) a description of the completed transactions or events that enabled the Company to satisfy the stockholder’s equity requirement for continued listing; and 2) a balance sheet, no older than 60 days with pro forma adjustments for any significant transactions or events occurring on or before the report date, which evidences compliance with the stockholders’ equity requirement; and 3) a disclosure that the Company believes it also satisfies the stockholders’ equity requirement as of the report date. The transfer to The Nasdaq Capital Market does not resolve the dollar bid requirement, which remains outstanding.

In order to fully comply with the terms of this decision, the Company must be able to demonstrate compliance with all applicable requirements for continued listing on The Nasdaq Capital Market by May 31, 2022. In that regard, the Company is currently in a grace period for the $1 bid price requirement that runs through September 5, 2022. As a result, the Company does not have to regain compliance with the bid price requirement in order to satisfy the decision. Companies listed on The Nasdaq Capital Market may be eligible for a second 180-day grace period for bid price if they meet certain standards, including a demonstration that stockholders’ equity is at least $5 million. In the event the Company is unable to meet the terms of the decision, the Company may seek a further extension from the Panel not to exceed September 20, 2022; however, there can be no assurance that the Panel would grant a further extension or that the Company will return to compliance.