DeFi Technologies missed Nasdaq's $1 minimum-bid requirement after DEFT shares closed at $0.6032 on Aug. 31, failing to complete the required 10-business-day consecutive closing-price streak at or above $1 by the Sept. 1 deadline.
Nasdaq notified the company on March 5 that its shares had closed below $1 for 30 consecutive business days, triggering an initial 180-calendar-day compliance period ending Sept. 1. The stock closed below $1 throughout August, making it impossible to achieve the necessary consecutive closing prices in time.
Compliance Path Forward
Nasdaq will now determine whether DeFi Technologies qualifies for a second 180-calendar-day compliance period or receives a written delisting determination. To qualify for another compliance window, the company must satisfy the continued-listing requirement for the market value of publicly held shares and all other applicable initial standards for the Nasdaq Capital Market, apart from the bid-price rule. DeFi Technologies must also notify Nasdaq in writing of its intent to cure the deficiency during the additional period.
If the company does not qualify for a second window, or if Nasdaq staff concludes the deficiency cannot be cured, Nasdaq would issue written notice that the shares are subject to delisting. DeFi Technologies could appeal such a determination to a Nasdaq hearings panel.
Consolidation Option Available
Shareholders have authorized the board to conduct a share consolidation of up to 12-for-1, leaving the board discretion on whether and when to implement it. This authorization provides a potential mechanism for addressing the per-share requirement, though no consolidation had been executed as of Sept. 1.
