Future Fintech Group Inc (NASDAQ: FTFT) is flying in the market this morning, trading on gains of more than 64% early on. The gains come after the company announced that it has regained compliance with NASDAQ. Here’s what’s going on:
FTFT Stock Pops On NASDAQ Compliance
In a press release issued early this morning, Future FinTech Group announced that it has received a letter from the NASDAQ Listing Qualifications Staff. The letter was sent to notify the company that it has regained compliance with NASDAQ’s periodic filing requirements.
As a result of FTFT regaining compliance, it will remain listing on the Nasdaq Capital Market. In the letter, the NASDAQ outlined that the Form 10-K and Form 10-Q filings that recently took place have allowed the company to regain compliance.
In the release, the company reminded investors that it submitted a plan of compliance in connection with its failure to meet the requirement of maintaining a minimum of $2.5 million in shareholder equity. Should the plan be accepted, the NASDAQ may grant an extension up to 180 calendar days of the date of the NASDAQ letter (09/4/2019).
FTFT said that it will have the opportunity to appeal the decision to a Hearing Panel. Nonetheless, the company is waiting to find out if NASDAQ will accept its plan.
Why The Stock Is Popping
At first glance, the news today from Future FinTech Group may seem mixed. Sure, compliance in one area was met. However, the company still stands the chance of being delisted as a result of minimum shareholder equity requirements. So, why is it that the stock is running for the top? Here’s how I see it:
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