DeFi Technologies misses Nasdaq $1 deadline; delisting review

DeFi Technologies’ US-listed shares (ticker: DEFT) closed at $0.6032 on Aug. 31, missing Nasdaq’s $1 minimum bid rule and preventing the company from completing the required 10 consecutive business days at or above $1. The closing price moved the company into a Nasdaq review that could lead to a second 180-calendar-day compliance period or to a written delisting determination.

Nasdaq notified DeFi Technologies on March 5 that DEFT had traded below $1 for 30 consecutive business days as of March 4 and gave the company an initial 180-calendar-day cure period that ended on Sept. 1. Nasdaq bases compliance on consecutive daily closing prices; because every August close was below $1, an intraday rise on Sept. 1 could not produce the ten-business-day streak required for cure. The Aug. 31 close was about 40% below the $1 threshold.

Nasdaq staff may request up to 20 consecutive business days of $1-or-higher closes before formally confirming compliance. The Aug. 31 result obliges the exchange to review whether DeFi Technologies meets the other continued-listing standards and to decide whether a second cure period is appropriate.

To receive a second 180-calendar-day window, the company must satisfy Nasdaq’s continued-listing requirement for the market value of publicly held shares and meet all other applicable initial listing standards for the Nasdaq Capital Market, except the bid-price rule. The company must also notify Nasdaq in writing of its intention to cure the bid-price deficiency during the extension. If the company does not qualify for an extension or Nasdaq staff conclude a cure is unlikely during a second period, the exchange would issue a delisting notice; the company would have the right to appeal to a Nasdaq hearings panel.

Shareholders previously authorized the board to carry out a share consolidation of up to 12-for-1. That authorization is discretionary: the board can choose any consolidation ratio up to the approved limit before the next annual meeting or take no action. DeFi Technologies’ Aug. 13 filings identified the authorized consolidation as a potential remedy, but company materials and SEC submissions through 11:19 UTC on Sept. 1 showed no scheduled or executed consolidation and contained no announcement of a second compliance period, a delisting determination or regained compliance.

Nasdaq’s review will examine the company’s market value of publicly held shares and whether DeFi Technologies presents a plan that meets listing criteria within any additional cure period. Further filings or public statements from the company could affect the stock’s eligibility to remain listed on Nasdaq.