China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF) said it has received a letter from The NASDAQ Stock Market LLC, dated September 10, 2015, notifying the company that it is currently not in compliance with the minimum bid price requirement set forth under NASDAQ Listing Rule 5450(a)(1).
It has resulted from the fact that the bid price of the company´s American Depositary Shares closed below USUSD1 per share for the last 30 consecutive business days.
The company has a grace period of 180 calendar days, expiring on March 8, 2016, in which to regain compliance. The company will regain compliance if, at any time during this 180-day period, the closing bid price of the company´s security is at least USD1 for a minimum of ten consecutive business days. In the event the company does not regain compliance with the Rule within 180 calendar days, the company may be eligible for additional time.
The company intends to monitor the closing bid price of its ADSs between now and March 8, 2016 and intends to consider available options to cure the deficiency and regain compliance with the Rule´s minimum bid price requirement within the prescribed grace period. The company´s ADSs will continue to be listed and trade on the NASDAQ Global Market during this period, unaffected by the receipt of the written notification from Nasdaq.
TechFaith is a China-based mobile solutions provider for the global mobile handsets market, with a focus on the original design and development of specialized mobile handsets under its customer´s brands and its own brands for consumers and enterprises, and the sales of finished products to local and international customers. Starting in 2008, the company began investing in the construction of buildings and facilities in its expanding real estate portfolio in China as part of its growth and diversification strategy.