RISE Education Receives Notification from Nasdaq Regarding Minimum Bid Price Compliance

BEIJING, April 6, 2022 /PRNewswire/ — RISE Education Cayman Ltd (“RISE” or the “Company”) (Nasdaq: REDU) today announced that it has received a letter from the Enrollment Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) advising the Company that its continued non-compliance with Nasdaq listing rule 5450(a)(1), which requires the maintenance of a minimum closing bid price of $1.00 per share, could serve as an additional basis for delisting the Company’s securities from Nasdaq. The Company had previously been granted a 180-day grace period to re-compliance with the minimum bid price requirement on September 27, 2021which expired on March 28, 2022. The Company plans to provide an update to staff and the Nasdaq Hearing Panel (the “Panel”) regarding its efforts to demonstrate compliance with all applicable criteria for initial listing in its business combination with Dada Auto Inc. (“NaaS”), including Upper Threshold, $4.00 the minimum closing bid price requirement, within the time allowed by staff.

Following the Company’s hearing before the Panel, during which the Company presented its plan to acquire an operating business and certified compliance with the initial listing criteria applicable to the combined entity at the same time, the March 9, 2022the Panel has granted the request to maintain the Company’s listing for at least June 30, 2022subject to the Company’s satisfaction of certain conditions, including: completion of the previously announced proposed business combination with NaaS, a leading operations and technology provider serving China electric vehicle charging market; the combined entity’s compliance with all initial Nasdaq Capital Markets listing requirements as set forth in Nasdaq Listing Rule 5505; as well as the timely satisfaction of other interim milestones related to the receipt of shareholder approval for the business combination and the completion of financial audits of the Company and NaaS.

At April 4, 2022the Company has announced its intention to hold an extraordinary general meeting of shareholders on Friday, April 29, 2022 at 10:00 a.m. (China Standard Time), for the purposes of reviewing and, if deemed appropriate, approving the transactions contemplated in the agreement and plan of merger by and between the Company and NaaS, dated February 8, 2022pursuant to which NaaS shareholders will exchange all of the issued and outstanding share capital of NaaS for newly issued shares of the Company in a transaction exempt from registration requirements under the Securities Act of 1933.

The Company and NaaS are working diligently to ensure compliance of the combined entity with all applicable initial listing criteria upon consummation of the proposed transaction, such efforts will likely include modifying the Company’s U.S. depository equity ratio compared to ordinary shares in order to ensure compliance of the combined entity with the $4.00 minimum closing bid price requirement for initial listing on Nasdaq Capital Markets.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. You may identify these forward-looking statements by words such as “will”, “expect”, “believe”. , “anticipates”, “intends”, “estimates” and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about RISE and the industry. All information provided in this press release is as of the date hereof, and RISE undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, unless the law requires it. Although RISE believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will prove to be correct, and investors are cautioned that actual results may differ materially from anticipated results.

SOURCE RISE Education Cayman Ltd

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