DeFi Technologies Stumbles on Nasdaq Compliance
DeFi Technologies, a company listed on the Nasdaq, has missed its deadline to meet the $1 minimum bid price requirement. The threshold was set for September 1st, and despite closing at $0.6032 on August 31st, the stock's consecutive closing prices were not enough to qualify it for continued listing.
The company received a notification from Nasdaq on March 5th that its shares had closed below $1 for 30 consecutive business days as of March 4th. This was followed by an initial 180-calendar-day period, which ended on September 1st. However, the stock's daily history showed every August close below $1, making it impossible to meet the required streak.
Nasdaq can grant a second 180-calendar-day period if DeFi Technologies satisfies the continued-listing requirement for market value and other standards. The company must also notify Nasdaq in writing that it intends to cure the deficiency during this additional period. If it does not qualify, or if Nasdaq staff concludes that the deficiency cannot be cured, the shares will be subject to delisting.
The authorization of a share consolidation of up to 12-for-1 by shareholders has given DeFi Technologies a mechanism for addressing the per-share requirement. However, this decision remains dependent on its Nasdaq compliance path.