Sharing Economy International Inc. announced that on November 26, 2018, Sharing Economy International Inc. (the “Company”) received a staff determination notice from The Nasdaq Stock Market (“Nasdaq”) informing the Company that as a result of its failure to comply with Nasdaq’s shareholder approval requirements set forth in Listing Rule 5635(c) (the “Rule”), the staff had determined to deny the Company’s request for continued listed based on a plan of compliance submitted on October 26, 2018.
In the determination notice, the staff expressed its concern that the plan of compliance did not represent a definitive plan evidencing the Company’s ability to comply with the Rule due to (i) a portion of the shares issued in violation of the Rule having been sold in the market (and accordingly no longer subject to remediation) and (ii) the lack of signed commitments from other holders of shares issued in violation of the Rule to participate in a proposed exchange offer intended to remediate such issuances by virtue of a subsequent special meeting of stockholders to be held to approve them. Nasdaq further informed the Company that, in accordance with Listing Rule 5101, unless the Company requests an appeal of the staff’s determination, the Company’s common stock will be suspended from trading on the Nasdaq Capital Market at the opening of business on December 5, 2018.
The Company has decided not to appeal the Nasdaq determination notice and is instead moving its stock listing to the OTC Markets. The Company believes OTC Markets is more suitable to its capital and business needs at this time as it undergoes the transition of its business and pursues aggressive growth strategies in the coming years. Although SEII is moving its stock listing to a different market, the Company intends to continue to maintain high quality reporting and disclosure standards and will continue to improve its corporate governance.
The Company’s common stock will be delisted from Nasdaq effective at the open of trading on December 5, 2018. The Company expects that its common stock will begin trading on the OTC Markets under the symbol SEII beginning on December 5, 2018.