On the risk of delisting of ordinary shares of Educational Development Corporation (EDUC)

The International Trading System Limited (ITS) informs of the delisting risk in respect of ordinary shares of Educational Development Corporation (ISIN US2814791057) The Nasdaq Stock Market LLC (Nasdaq).

Information on delisting risk of ordinary shares by Nasdaq

On January 13, 2025, Educational Development Corporation (the Company) submitted a Quarterly report on Form 10-Q to The United States Securities and Exchange Commission. According to the report, the Company expects short-term duration of the Revolving Loan and uncertainty of the bank’s ongoing support beyond January 4, 2025, along with recurring operating losses and other items. These conditions led the Company’s management to raise substantial doubt about its ability to continue as a going concern for more than twelve months from the date of these financial statements. For more information, please refer to the report available on the SEC website.

Previously, similar statements were made in the Company’s annual report on Form 10-Q for the quarterly period ended August 31, 2024.

Information regarding possible actions to be taken by ITS

If Nasdaq suspends trading in the Company’s ordinary shares, ITS will prohibit submission of orders and will restrict ability to conclude agreements in respect of the Company’s ordinary shares. If the Company’s ordinary shares are delisted from Nasdaq, ITS will terminate trading in the Company’s ordinary shares. However, in case the Company’s ordinary shares become listed, or admitted to trading on another Recognised Trading Venue, ITS will consider but does not guarantee continuation of trading in the Company’s ordinary shares.