Blue Hat Announces Receipt of Nasdaq Delisting Notice Subject to Hearing Request

Rhea-AI Summary

Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) has received a delisting notice from Nasdaq on January 24, 2025, due to non-compliance with the Low Priced Stocks Rule, as the company's shares traded at $0.10 or less for ten consecutive trading days from January 8-23, 2025.

This notice follows a previous September 6, 2024 notification regarding non-compliance with the minimum $1.00 bid price requirement, for which the company had until March 5, 2025 to regain compliance. The new delisting determination has terminated this compliance period early.

Blue Hat has until January 31, 2025, to request a hearing to appeal the delisting determination. If requested, the company's shares will continue trading on Nasdaq during the appeal process. Without an appeal, trading will be suspended on February 4, 2025. The company is exploring options to regain compliance, including a potential reverse stock split.

Positive

• Company can temporarily maintain Nasdaq listing if hearing is requested by January 31, 2025
• Management actively exploring compliance options including reverse stock split

Negative

• Received Nasdaq delisting notice due to shares trading below $0.10
• Early termination of previous compliance period ending March 5, 2025
• Risk of immediate trading suspension if appeal not filed by January 31, 2025
• Potential delisting from Nasdaq Capital Market

Insights

Financial Markets Analyst

The receipt of Nasdaq's delisting notice marks a critical juncture for BHAT, with potentially severe implications for shareholders. This accelerated delisting process, triggered by the Low Priced Stocks Rule violation ($0.10 or less for ten consecutive trading days), supersedes the previous $1.00 minimum bid compliance timeline that was set to expire on March 5, 2025.

The situation is particularly concerning given BHAT's current market capitalization of just $14.7 million and share price of $0.06. While the company plans to appeal and is considering a reverse stock split, executing such a corporate action at these price levels presents significant challenges. Reverse splits often face market skepticism and can lead to increased volatility, especially in micro-cap stocks.

For investors, several critical considerations emerge:

• If BHAT fails to request a hearing by January 31, trading will be suspended on February 4, severely impacting share liquidity
• Even with a successful appeal, the company faces an uphill battle to maintain Nasdaq listing requirements
• A potential move to over-the-counter (OTC) markets would likely result in reduced institutional interest, decreased liquidity and potentially stricter trading restrictions for retail investors

The compressed timeline for appeal and the need for immediate strategic action underscore the precarious position of the company's Nasdaq listing status. The outcome of this situation could fundamentally alter BHAT's market accessibility and shareholder value preservation capabilities.

XIAMEN, China, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT), today announced that on January 24, 2025, it has received a letter from The Nasdaq Stock Market LLC (“Nasdaq”), notifying that the Company is not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii) (the “Low Priced Stocks Rule”), as the Company’s securities had a closing bid price of $0.10 or less for ten consecutive trading days from January 8, 2025 through January 23, 2025. The letter indicated that, as a result, the Nasdaq staff has determined to delist the Company’s ordinary shares from The Nasdaq Capital Market (the “Delisting Determination”).

As previously reported, on September 6, 2024, Nasdaq notified the Company that the bid price of its listed securities had closed at less than $1.00 per share over the previous 30 consecutive business days and, as a result, did not comply with Listing Rule 5550(a)(2). The Company was provided 180 calendar days, or until March 5, 2025, to regain compliance with this rule. The Delisting Determination ended the aforementioned compliance period before its expiration because the Company’s stock prices have triggered the Low Priced Stocks Rule. The Company was provided until January 31, 2025 to request an appeal of the Delisting Determination to the hearing panel.

The Company intends to request such hearing to appeal the Delisting Determination before that date, which will stay the suspension of its securities from the date of the request, during which time such securities will continue to be listed on The Nasdaq Capital Market.

If the Company fails to request an appeal of the Delisting Determination by January 31, 2025, trading of the Company’s ordinary shares will be suspended at the opening of business on February 4, 2025, and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company’s securities from listing and registration on The Nasdaq Stock Market.

The Company is considering all potential options available to it to regain compliance with the aforementioned rules, including seeking shareholders’ approval for a reverse stock split.

About Blue Hat

Blue Hat was formerly a provider of communication services, as well as a producer, developer, and operator of AR interactive entertainment games, toys, and educational materials in China. Leveraging years of technological accumulation and unique patented technology, Blue Hat is expanding its business to commodity trading, aiming to become a leading intelligent commodity trader worldwide. For more information, please visit the Company’s investor relations website at http://ir.bluehatgroup.com. The Company routinely provides important information on its website.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements.

Contacts:
Blue Hat Interactive Entertainment Technology
Phone: +86 (592) 228-0010
Email: ir@bluehatgroup.net

  

FAQ

Why is BHAT stock facing delisting from Nasdaq?

BHAT is facing delisting because its stock price traded at $0.10 or less for ten consecutive trading days (January 8-23, 2025), violating Nasdaq's Low Priced Stocks Rule.

When will BHAT stock be delisted from Nasdaq?

If BHAT doesn't appeal by January 31, 2025, trading will be suspended on February 4, 2025. If they appeal, trading will continue during the appeal process.

What options does BHAT have to prevent delisting?

BHAT can appeal the delisting determination by January 31, 2025, and is considering options including a reverse stock split to regain compliance.

How long does BHAT have to appeal the Nasdaq delisting notice?

BHAT has until January 31, 2025, to request a hearing to appeal the delisting determination.

What happens to BHAT shares if the company gets delisted?

If delisted, BHAT shares will be removed from the Nasdaq Capital Market through a Form 25-NSE filing with the SEC.