OneSmart International Education Group Limited (ONE) shares fell 8.97% in pre-hours. However, in the regular trading session yesterday, ONE’s stock gained 73.01%. ONE’s shares have fallen 76.58% over the last 12 months, and they have moved up 61.78% in the past week. Over the past three months, the stock has lost 69.10%, while over the past six months, it has declined 75.75%. The company has a current market of $140.78 million and its outstanding shares stood at 161.54 million.
Let’s see why did it lose its positive momentum in the after-hours on Wednesday?
ONE Stock received a non-compliance letter from NYSE
On August 4, 2021, OneSmart International Education Group Limited (ONE) received a letter from the New York Stock Exchange notifying OneSmart that it is below compliance criteria in connection with the performance of the trading price of OneSmart’s American depositary shares.
The company closing price of a security as reported on the consolidated tape is less than US$1.00 over a consecutive 30 trading-day period. Once notified, the company must bring its share price and average share price back above US$1.00 by six months following receipt of the notification.
ONE Stock Provided an important update
on July 24, 2021, China’s official state media, including Xinhua News Agency and China Central Television, announced the Opinions on Further Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education issued by the General Office of the CPC Central Committee and the General Office of the State Council.
On July 26, 2021, OneSmart International Education Group Limited (ONE) responded to the above-mentioned matter and said that the company will continue to comply with all applicable rules and regulations in providing educational services. The Company is carefully considering the provisions of the Opinion and assessing their implications for the Company’s business.
Upcoming ONE AGM
OneSmart International Education Group Limited (ONE) will hold its 2021 annual general meeting of shareholders at 2161 North Zhongshan Road, Putuo District, Shanghai 200333, the People’s Republic of China on August 30, 2021, at 2 p.m., local time.
Still, there is no proposal announced for the meeting.
Important management changes
On June 26, 2021, OneSmart International Education Group Limited announced that Mr. Honggang (Greg) Zuo, the Company’s director, chief financial officer, and chief strategic officer, has resigned due to family reasons.
The company also announced that Mr. Qiang (Eason) Zhou, vice president of finance, will report directly to Mr. Steve Zhang, the Company’s chief executive officer. Mr. Zhou joined OneSmart in 2008 and has served successively as financial controller, senior financial controller, assistant vice president, and vice president of finance of the Company.
Conclusion
The ONE stock declined in the pre-hours after the non-compliance notice from NYSE. There was no reason behind its exceptional surge in the regular trading on Wednesday.
