HX stock is moving higher in early trading on December 23, 2019, after YRZZ announced a strategic cooperation agreement with HX; however, this news was originally announced back on December 20, 2019 by HX, unless I’m not understanding something here. Re-releasing the same news from last week might be a desperate attempt for HX to push up its share price because it received a delisting notice from the Nasdaq IMO, but I could be wrong.
Entertainment Manufacturing International Culture Media Group Co. Limited (“YRZZ”), a leader in Asia’s entertainment industry, announced its strategic cooperation with Nasdaq listed Hexindai, Inc. (NASDAQ: HX) (“Hexindai”) today. Color World Entertainment Limited, an affiliate of YRZZ, and Hexindai entered into a non-binding Memorandum of Understanding (“MOU”) of intent to start collaborating on business integration and expansion going forward.
YRZZ, a leading live event entertainment company in Asia, is equipped with abundant resources to seamlessly facilitate a variety of world-class live entertainment and performances featuring premier celebrities. With its prominent cast and seasoned operation professionals, YRZZ has established a stellar reputation and is well known for its rich experience in providing solid on-and-off line entertainment to audiences worldwide.
Mr. Xin Wu, President of the Entertainment Manufacturing International Culture Media Group Co. Limited, commented “As we have successfully accomplished our strategic expansion covering the Southeast Asia region, YRZZ will begin to actively explore the U.S. and European markets to establish a true global business network. The cooperation with Hexindai will allow us to leverage Hexindai’s existing resources on the Nasdaq and propel our global expansion plan. Entertainment is without borders. As the first entertainment company in Asia to tap into the global capital market, we aspire to connect the world by facilitating cultural exchanges of artistic performances and building our own global entertainment enterprise.”
Mr. Xiaobo An, Hexindai’s Founder, Chairman and Chief Executive Officer commented, “We are very excited to launch this new chapter of our business and cannot wait to implement our long-term plans. Under the terms of the MOU, this strategic cooperation will allow Hexindai and Color World Entertainment Limited to develop and diversify the business by providing comprehensive services for the entertainment market, starting in 2020.”
Entertainment Manufacturing International Culture Media Group Co. Limited is premier live event entertainment group, equipped with abundant resources to facilitate a variety of live entertainment and performances featuring world class celebrities. With its prominent cast and seasoned operation professionals, the Company has established a stellar reputation and is well known for its rich experience in providing solid on-and-off line entertainment to audiences worldwide.
On December 19, 2019, Hexindai announced that it received notification from Nasdaq that it is not in compliance with the minimum bid price requirement set forth in listing rules for continued listing on Nasdaq as the closing price of the company’s ADSs have been less than $1.00 over a consecutive 30-trading-day period. In accordance with Listing Rule 5810, the company has a period of 180 calendar days from the date of notification, being until June 15, 2020, to regain compliance with the minimum bid price. In order to regain compliance, the company’s ADSs must have a closing bid price of at least $1.00 for a minimum of 10 consecutive trading days. In the event that the company does not regain compliance during the first notice period of 180 calendar days, or by June 15, 2020, the company may be eligible for additional time to regain compliance or may face delisting from the exchange. The company is currently in compliance with all other Nasdaq continued listing standards. The Nasdaq notification does not affect the company’s business operations or its Securities and Exchange Commission reporting requirements.