BEIJING - Zhihu Inc. (NYSE: ZH; HKEX: 2390), a prominent online content community in China, has successfully regained compliance with the New York Stock Exchange's (NYSE) minimum average share price requirement, according to a recent notification from the exchange.
The NYSE Compliance Notice, dated June 3, 2024, confirmed that Zhihu's American Depositary Shares (ADS) are no longer trading below the minimum average price of $1.00 over a 30 trading-day period, a criterion for continued listing on the exchange. This development follows a previous notice Zhihu received on December 28, 2023, which indicated that the company's ADS were trading below the required threshold.
Zhihu, which launched in 2010, has evolved from a question-and-answer community to one of the largest and most comprehensive online content communities in China. The platform is known for facilitating information exchange and providing inspiration, entertainment, and decision-making support to its users.
This announcement reflects a positive shift in Zhihu's stock performance on the NYSE and marks the resolution of a compliance issue that had been previously identified by the exchange. The company's compliance status is now in line with the NYSE Trading Price Requirement, alleviating concerns regarding its listing.
The information provided in this article is based on a press release statement from Zhihu Inc.
In other recent news, Zhihu Inc., a leading online content community in China, has experienced a series of significant changes. The company has announced the appointment of Mr. Bin Sun as the new Chief Technology Officer, following the departure of former CTO Mr. Dahai Li who has taken up the role of CEO at AI-focused startup Modelbest. Mr. Sun, a seasoned professional with a rich background in leading tech teams and crafting technology strategies, is expected to drive progress and technological advancements at Zhihu.
In addition to this, Zhihu has disclosed an adjustment in the ratio of its American depositary shares (ADSs) to Class A ordinary shares. The change, set to take effect on May 10, 2024, will transition from two ADSs signifying one Class A ordinary share to one ADS representing three Class A ordinary shares, equating to a one-for-six reverse ADS split. JPMorgan Chase (NYSE:JPM) Bank, N.A., the depositary bank for Zhihu's ADS program, will oversee the exchange process.
These are recent developments that investors should take note of. The company has emphasized that the adjustment will not impact the company's underlying Class A ordinary shares, and no shares will be issued or cancelled due to the ADS Ratio Change.
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