Nasdaq issues deficiency notice to Paranovus regarding bid price
Paranovus Entertainment Technology Limited (PAVS) has received a notification from Nasdaq, stating that the company's Class A ordinary shares have been below $1.00 for 30 consecutive business days, putting the company at risk of non-compliance with Nasdaq Listing Rule 5550(a)(2).
The 180-day period for PAVS to regain compliance with the minimum bid price requirements begins on July 11, 2025. During this period, the company must meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq, except for Nasdaq Listing Rule 5550(a)(2).
If PAVS fails to regain compliance during the initial 180-day period, it may face several potential consequences, including delisting from the Nasdaq market. This could significantly impact investor confidence and the stock's value. However, before delisting, companies have the right to appeal the decision to a Nasdaq Hearings Panel.
Companies that fail to meet the bid price requirement but meet other listing criteria may be able to transfer their listing to the Nasdaq Capital Market or other exchanges. As a last resort, companies might consider executing a reverse stock split to artificially inflate the stock price and meet the minimum bid price requirement. However, this action is typically seen as a negative signal to investors as it reduces the number of outstanding shares.
If PAVS meets all other listing requirements and submits a written notice of intention to cure the deficiency, it may be eligible for a second 180-day extension, offering additional time to rectify the issue. The written notice of the Company's intention to cure the deficiency must be provided during the second compliance period.
PAVS has until January 7, 2026, to regain compliance with the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2). If PAVS' Class A ordinary shares' closing bid price is at least $1 for a minimum of 10 consecutive business days, Nasdaq will provide the company written confirmation of compliance.
For more information on PAVS' latest innovations and developments, visit their website at .
Finance and business are key areas that Paranovus Entertainment Technology Limited (PAVS) must focus on to avoid non-compliance with Nasdaq Listing Rule 5550(a)(2), as failing to regain compliance within the given period may lead to delisting, which could significantly impact investor confidence and the stock's value in the business world. To rectify the issue, PAVS might consider transferring its listing to another exchange, executing a reverse stock split, or implementing a written notice of intention to cure the deficiency, which could potentially provide an additional 180-day extension.
