Press Release: Naas Technology Inc. Regains Compliance With Nasdaq Minimum Market Value Of Listed Securities Requirement

NaaS Technology said Monday it plans to change its current ratio of one American depositary share to 800 of its class A ordinary shares to a new ADS ratio of one ADS to 3,200 class A ordinary shares.

The change in the ADS ratio is expected to become effective on or about July 30.

For the company's ADS holders, the change in the ADS Ratio will have the same effect as a one-for-four reverse ADS split, NaaS Technology said.

The change in the ADS Ratio is expected to increase the ADS trading price proportionally, although the company can give no assurance that the ADS trading price after the change will be equal to or greater than four times the ADS trading price before the change, it said.

NaaS Technology said late Friday it received a notice from Nasdaq for noncompliance with the listing rule related to maintaining a minimum $35 million market value of its class A shares.

NaaS Technology is also non-compliant with listing standards, like maintaining the minimum $2.5 million of stockholders' equity and a net income standard of $500,000 linked to its operations, according to a statement.

The notice does not immediately affect the stock listing, according to the company.