China-based leisure online travel company Tuniu said it received a letter from the Nasdaq Stock Market Inc. informing it that the company has regained compliance with the listing rules by keeping its share price above USD 1.0 for at least 10 consecutive business days.
The company's ADS share price was below the minimum requirement of USD 1.0 for 30 consecutive business days earlier this year and it received a warning letter from the Nasdaq Stock Market Inc. in May.
Tuniu has been listed on Nasdaq since 2014 and the company registered its highest share price at USD 24 in the same year. But the company's stock continued to plunge afterward.
The company announced on June 22 that JD.com, a Chinese e-commerce giant and one of its major stakeholders, struck a deal with Chinese tour operator group Caissa to unload JD.com's 21.1% stake in Tuniu. Caissa will buy the Tuniu stake from JD.com for USD 56 million, after the e-commerce company spent around USD 500 million in Tuniu in 2014 and 2015.
Tuniu has not been profitable for the past six years as a public company. As of June 26 this year, the company's market capitalization was around USD 140 million.
