Future FinTech Regains Compliance After Turbulent Year; Stock Up 43%
Shares in Future FinTech Group Inc. (Nasdaq: FTFT) soared 43% on Thursday afternoon on news that the company has regained compliance with the listing rules.
The Xi'an-based company, which provides blockchain services in online retail and sells fruit juice, said in a statement after markets closed Wednesday that the Nasdaq Capital Market has informed it that it has met the requirements to continue trading its shares and "the matter is now closed."
In response to the announcement, the stock in FTFT jumped to $1.05 per American depositary share intraday.
This year, Future FinTech has come close to delisting a number of times.
Last month, the company was notified that it did not maintain $2.5 million in stockholders' equity, a $35 million market value of listed shares, or a net income of $500,000, thus failing to meet the listing rules of the Nasdaq, as Future FinTech reported.
It then submitted a plan to the stock exchange to regain compliance and retain its listing. The company said on Sep. 20 that its proposed plan was under review by the capital market.
Previously this year, Future FinTech reported it was deemed late in submitting its annual report and maintaining the minimum share price requirements.
At the end of September, the company filed its financials for the first two quarters.
For the six months through June, Future FinTech reported revenue of $475,005 compared with $1.4 million in the same period last year. Net loss attributable to the company narrowed to $2.9 million from $6.2 million a year ago. Per share loss was 9 cents, according to the filing.
Future FinTech reported expenses of $3.5 million for the half-year, down 46% year-over-year.
The company had 31.2 million shares outstanding as of June 30 compared with 15.1 million at the same time in 2018. It had cash and cash equivalents of $256,114, it reported.
Formerly known as SkyPeople Fruit Juice Inc., Future FinTech delved into blockchain technology in 2017 and began to develop applications and digital asset systems for financial and retail businesses. Last year, Future FinTech changed its business strategy and shifted its source of revenue to the blockchain-based global e-commerce, as well as financial and management consulting.
Over the past few months, as Reuters reported, the Nasdaq has tightened its listing criteria, seeking to limit the approval of small Chinese companies that get most of their IPO capital from China and internal investors.