Japanese firm, Earlyworks Co., Ltd., which operates the Grid Ledger System (GLS), a private blockchain technology, has been notified of its non-compliance with Nasdaq's minimum bid price requirement. The warning was issued by Nasdaq's Listings Qualifications Department on October 30, 2023.
The company failed to meet the minimum bid price of US$1.00 per share under Nasdaq Listing Rule 5550(a)(2). This was determined based on the closing bid price of its American Depositary Shares (ADSs) over 30 consecutive business days from September 18 to October 27, 2023.
Despite the notification, Earlyworks' listing on the Nasdaq Capital Market remains unaffected for now. The company has until April 29, 2024, to regain compliance. To achieve this, it must maintain a closing bid price of at least US$1.00 for its ADSs for ten consecutive business days. If Earlyworks fails to meet this requirement by the deadline, it could face delisting or may be granted additional time to regain compliance.
The non-compliance notification does not impact Earlyworks' operations. The company plans to monitor its ADSs' closing bid prices closely and is considering implementing a reverse share split as a strategy for regaining compliance.
Earlyworks promptly disclosed the non-compliance notification, following the guidelines of Nasdaq Listing Rule 5810(b), demonstrating its commitment to transparency and compliance.
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