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      OneSmart International Education Group Limited (ONE) Stock Plunged 40.13% Pre-Market, Here’s Why - Stocks Telegraph

      By Iqra Jamal

      Published on

      October 18, 2021

      10:13 AM UTC

      OneSmart International Education Group Limited (ONE) Stock Plunged 40.13% Pre-Market, Here’s Why - Stocks Telegraph

      OneSmart International Education Group Limited (ONE) stock plummeted 40.13% in the pre-market trading session at the price of $0.2396 despite no fundamental reason. The last published news was the resignation of two independent directors and the approval of business suspension. ONE is a Chinese K-12 education system focused on the core values of perfection, integrity, technology, and innovation. 

      Resignation of Directors and Business Suspension Approval  

      On 12th October 2021, ONE published that its board of directors had approved the postponement of all educational programs and training centers in China. The suspension resulted from complications caused by current modifications in the policies and administrative landscape in the private education industry and the operational challenges endured by the company. OneSmart also published the resignation of two independent directors, Yan Gong and Liang (Mason) Xu. The company plans to appoint two new independent directors in this regard.  

      ONE Published Receipt of NYSE Non-compliance Letter 

      On 4th August 2021, FCEL published that it had obtained a letter from the New York Stock Exchange on 3rd August 2021. As per the letter, OneSmart is lying beneath the compliance standards in association with the performance of the trading price of American depositary shares. Under the NYSE rule 802.01C, a company will get listed below compliance standards if the closing price on the consolidated tape is less than $1.00 for 30 days consecutively.  

      After getting notified, ONE must raise its share price and average share price above $1.00 within six months to avoid further proceedings. The company can reacquire compliance at any point if the company has a closing share price of $1.00 and an average closing share price of $1.00 over the 30-day periods. NYSE will start suspension and delisting procedures by the end of the six-month restorative period if the company has not achieved a $1.00 closing share price and the $1.00 average closing share price on the last trading day during that period.  

      ONE Provided Updates Regarding New Regulations 

      Previously, on 26th July 2021, ONE stated that China’s official media on 24th July 2021 published the opinions on Alleviating the Burden of Homework and After-School Tutoring for Students in Compulsory Education. The regulations were issued by the General Office of the State Council and the General Office of the CPC Central Committee. OneSmart will continue to obey all relevant rules and regulations while rendering educational services. The company is carefully examining the provisions of the opinions and evaluating their implications.   

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