Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 32

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 15
Chunk 32
---
 If, within that one-year monitoring period, the Panel or the Listing Qualifications
Department (the “ Staff”) finds we fail any Nasdaq continued listing standard, we will not be permitted to provide the Staff
with a plan of compliance with respect to such deficiency and the Staff will not be permitted to grant additional time for us to regain
compliance with respect to any deficiency, nor will we be afforded an applicable cure or compliance period. Rather, the Staff will issue
a delisting determination letter.

There can be no assurance
that we will not receive other deficiency notifications from Nasdaq in the future. A decline in the closing price of our Class A Shares
could result in a breach of the requirements for listing on the Nasdaq Capital Market. If we do not maintain compliance, Nasdaq could
commence suspension or delisting procedures in respect of our Class A Shares. The commencement of suspension or delisting procedures by
an exchange remains at the discretion of such exchange and would be publicly announced by the exchange. If a suspension or delisting were
to occur, there would be significantly less liquidity in the suspended or delisted securities. In addition, our ability to raise additional
necessary capital through equity or debt financing would be greatly impaired. Furthermore, with respect to any suspended or delisted Class
A Shares, we would expect decreases in institutional and other investor demand, analyst coverage, market making activity and information
available concerning trading prices and volume, and fewer broker-dealers would be willing to execute trades with respect to such Class
A Shares. A suspension or delisting would likely decrease the attractiveness of our Class A Shares to investors and cause the trading
volume of our Class A Shares to decline, which could result in a further decline in the market price of our Class A Shares.

In the event that our Class A Shares are
delisted from Nasdaq, U. S. broker-dealers may be discouraged from effecting transactions in our Class A Shares because they may be considered
penny stocks and thus be subject to the penny stock rules.

The SEC has adopted a number
of rules to regulate “penny stock” that restricts transactions involving stock which is deemed to be penny stock. Such
rules include Rules 3a51-1, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, 15g-7, and 15g-9 under the Exchange Act. These