MOGU Inc. stock lost a further 6.16% in the aftermarket at $0.5100, against its last close at $0.5435 on December 03. The has been trading in red since the company announced receiving an NYSE non-compliance letter regarding ADS price. In the previous trading session, the stock lost 11.96% after fluctuating between $0.5110 and $0.6210. During the session, the stock reached its 52-week low of $0.5110 at 282.23K shares.
Founded in 2011, the online fashion and lifestyle platform owner MOGU Inc. has a market capitalization of $54.75 million. Currently, the company has 87.89 million outstanding shares in the market.
MOGU stock’s Movement
Since the company announced the reception of the NYSE non-compliance letter, the stock has been falling down, to reach its 52-week low. During the last trading session, MOGU stock reached its 52-week low of $0.5110 at 282.23K shares. The recent decline in the stock has led its five-day loss to reach 27.53%. Moreover, the stock has gone down by 43.80% in the past month and 74.95% year to date.
Non-Compliance Letter
On November 19, the company announced the receiving of a non-compliance letter from the New York Stock Exchange, dated November 10, 2021. According to the letter, MOGU’s American depository shares are falling below the NYSE compliance criteria pursuant to Rule 802.01C. The company’s ADS fell below the NYSE compliance criteria as for consecutive 30 days, its average closing price has been less than $1.00. According to NYSE Rule 802.01C, MOGU has six months to bring the ADS average share price above $1.00 to regain compliance.
As per the company, MOGU plans to regain compliance with NYSE by closely monitoring market conditions and improving its financial position within due time.
Previous News from MOGU
Previously, on August 27, the company announced a shares repurchase program of US$10 million. According to the announcement, the company’s board members approved the repurchase program based on MOGU’s confidence in long-term business growth prospects. Moreover, the shares repurchase program will be effective till August 26, 2022.
Financial Highlights
On August 27, MOGU Inc. announced its unaudited financial results for the first quarter of fiscal 2022, which ended June 30, 2021. According to the company, in the Q1 fiscal 2022, total revenue was RMB92.0 million (US$14.2 million) against RMB132.5 million in the year-ago period. This shows a decrease of 30.6% year-over-year.
Moreover, in the Q1 fiscal 2022, the adjusted net loss was RMB24.3 million (US$3.8 million) or RMB1.00 (US$0.15) per share. This compares to an adjusted net loss of RMB14.4 million or RMB0.81 per share in the Q1 of fiscal 2021.
