On January 18, CooTek (Cayman) Inc. (CTK) stock rebounded in the after-hours following its descend during the regular session. The stock had been falling down since before the company announced receiving a non-compliance letter from NYSE.
During the regular session, the stock varied between $0.4135 and $0.3533 at 792.02K shares. CTK closed the session at $0.3550, losing a huge 13,69%. Following the big loss, the stock rebounded in the after-hours to gain 7.04%. Consequently, the stock was trading at $0.3800 per share in the after-hours on Tuesday.
The mobile internet company, CooTek (Cayman) Inc. develops mobile applications and artificial intelligence technology. Currently, its 62.28 million outstanding shares trade at a market capitalization of $27.64 million.
CTK Stock Movement and Reasons
On January 14, the company announced receipt of the NYSE non-compliance letter. While the announcement was responsible for further fuelling CTK’s decline, it had been in the red even before that. While already being in the red, the addition of the non-compliance letter caused the stock to reach its new 52-week low. Hence, the stock dropped down to $0.3533 in Tuesday’s regular session. Therefore, this brought a good buying opportunity for investors. Resultantly, the stock rebounded in the after-hours on Tuesday.
Overall, CTK stock has seen some major losses, as its lost 18.01% in the past five days alone. Moreover, the stock stands at a year-to-date loss of 42.21% while it subtracted a huge 86.90% last year.
NYSE Non-Compliance Letter
As per the announcement, the company received a non-compliance letter from the New York Stock Exchange, dated January 05, 2022. According to the letter:
- The company is in non-compliance with the NYSE standards because of its total market capitalization and stockholders’ equity.
- April 05, 2022, is the given due date for CTK to submit a business plan demonstrating compliance.
- On July 05, 2023, the applicable cure period for regaining compliance will expire.
Furthermore, the company is in non-compliance with NYSE’s continued listing standards as its total market capitalization has been below US$50 million for consecutive 30 days. Additionally, its stockholders’ equity is also less than US$50 million.
Based on the announcement, the company is working on regaining compliance with NYSE listing standards.
CTK Financial Highlights
In the third quarter of 2021, the company’s revenues decreased 52% year over year to US$51.1 million. Comparatively, the year-ago quarter’s revenues were $105.7 million.
CTK incurred a net loss of US$0.4 million in Q3 of 2021, against $22.0 million in the year-ago quarter.
