The AI-focused entertainment technology company, Color Star Technology Co. Ltd. (CSCW) shared some good news on April 27. The company said that it has been given an extension to regain compliance with Nasdaq. Consequently, the stock went up by a further 25.43% in the after-hours following a slight gain of 2.63%. Thus, CSCW stock rose to a value of $0.1667 in the session while 11.21 million shares exchanged hands.
CSCW’s Nasdaq Non-Compliance
The company has been in non-compliance with the Nasdaq minimum bid price requirements since October 2021. After trading below $1.00 a share for 30 consecutive days, it was notified by Nasdaq of the delinquency on October 27 and was granted a grace period till April 25, 2022. CSCW failed to regain compliance with the Listing Rule 5550(a)(2) and 5810(c)(3)(A) in the initially granted 180 calendar days.
On Wednesday, the company said that it received a written notification from Nasdaq dated April 26, 2022. According to the notification, the company is eligible for an additional 180 calendar day period to regain compliance with the minimum bid requirements. Hence, it now has until October 24, 2022, to regain compliance with Nasdaq.
Moreover, the company also said that it has submitted written notice of its intention to regain compliance within the second grace period. If the company’s shares close on or above $1.00 per share for consecutive 10 days within the given period, it will have regained compliance with Nasdaq.
What’s CSCW’s Status?
While CSCW stock has suffered a huge downfall year to date, the company has been making progress continuously. With the launch of its beta metaverse platform in January 2022, the company has tirelessly been working on developing its Color World. The company has even established a new subsidiary in Singapore to focus on its metaverse digital commerce and products. The latest from its metaverse includes a strategic partnership for setting up the world’s first digital airport on Color World.
Furthermore, the company has also formed multiple partnerships in 2022 and extended its business with operations in Europe.
Given the buzz around metaverse and the increasing adaptation of AI in every field, the company has set itself on the right course for a bullish future.
CSCW stock traded in the green on Wednesday as it shared the good news of receiving an extension for regaining compliance with Nasdaq. Investors were very cheerful about the extension and rallied the stock in the after hours.