Mobile Content Platform Qutoutiao to be Delisted from Nasdaq

According to the US Securities and Exchange Commission (SEC), Chinese cell content material platform Qutoutiao introduced that it had obtained a willpower letter from Nasdaq indicating the change’s intent to delist the corporate’s shares. The inventory will be suspended from Nasdaq buying and selling beginning at market open on March 23. The firm has determined not to problem the choice.

Nasdaq’s resolution to delist Qutoutiao was primarily based on the change’s itemizing rule {that a} publicly held firm should keep a minimal market worth of $1 million. Qutoutiao failed to regain compliance inside a 180-day grace interval. Additionally, the corporate was unable to meet the requirement of submitting its interim financials for the second quarter of 2022 and sustaining a closing bid worth of $1.00 or increased for its American Depositary Shares (ADS). As of March 21, the corporate’s inventory worth had declined by 58.89%, closing at $0.296 per ADS.

Qutoutiao was launched in 2016 as a Chinese cell content material platform. Two years later, it was listed on Nasdaq with a gap worth of $9.10 per share. At the shut of the primary day of itemizing, the inventory worth per share rose to $15.97, with a market worth of $4.662 billion.

Qutoutiao obtained $42 million in Series A financing from Chengwei Capital, Redpoint Ventures, and CMC Inc within the second half of 2017. In the primary half of 2018, the corporate accomplished a Series B financing spherical elevating over $200 million, led by Tencent, Xiaomi, and different buyers. Later that yr, in August 2018, Qutoutiao launched strategic buyers, together with People.cn’s funds, with an funding of almost $60 million.

Qutoutiao‘s success in China can be attributed to its skill to achieve deep insights into the leisure wants of individuals in much less developed cities, who could have fewer working hours, much less work strain, and extra spare time than these in additional urbanized areas.

However, the corporate’s efficiency had markedly declined over current years. In 2021, its annual income was 4.34 billion yuan ($630 million), down 17.89% year-on-year. In the fourth quarter of 2021, its income was 881 million yuan ($127 million), down 32.3% year-on-year.

SEE ALSO: Mobile Aggregated Content Platform Qutoutiao to Stop We Media Services

Qutoutiao has launched a lot of modern companies, together with the net novel platform “Midu,” which was as soon as an essential income for the corporate. However, on the finish of March 2022, Midu introduced that its contracted works would be transferred to China Literature beginning from April 1. China Literature is an organization targeted on constructing a deep and immersive mental property universe for the Mandarin-speaking world.

Over the previous yr, Qutoutiao had undertaken adjustments to its enterprise and personnel. On April 21, 2022, the corporate issued a discover stating that it will be stopping the service and upkeep of its “We Media” platform. Additionally, in November 2022, Qutoutiao‘s chief monetary officer, Zhu Xiaolu, resigned from the corporate.

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