NYSE suspends trading for Zhangmen and commences delisting proceedings

Image Credits: VCGThe New York Stock Exchange announced Thursday that NYSE Regulation has determined to commence proceedings to delist the American Depositary Shares of Zhangmen Education Inc. (NYSE: ZME) from the Exchange. Trading in the company’s ADSs was suspended on the NYSE on June 2, 2022.NYSE Regulation reached the decision pursuant to Section 802.01B of the NYSE’s Listed Company Manual because Zhangmen had fallen below the NYSE’s continued listing standard requiring listed companies to maintain an average global market capitalization over a consecutive 30 trading day period of at least $15,000,000.Zhangmen announced Friday that it expects to apply for quotation of its ADSs on an appropriate tier of the OTC Markets. Zhangmen received a letter in April from NYSE notifying that its total market capitalization and stockholders’ equity were below the NYSE’s compliance standards.According to the unaudited and unreviewed financial results for the full year ended December 31, 2021, Zhangmen reported net revenues of US$700 million, up 9.6% YoY.Since China launched a set of guidelines to regulate after-school tutoring last year, Zhangmen has explored ways to shift its focus from online tutoring for K-12 students. The company recently expands into smart hardware and SaaS areas.