BloomZ Inc. Regains Compliance with Nasdaq Continued Listing Standards

Rhea-AI Summary

BloomZ (NASDAQ: BLMZ), a Japanese audio production and VTuber entertainment company, has successfully regained compliance with Nasdaq's continued listing standards. The company received formal notification from Nasdaq on February 19, 2025, confirming its compliance with Rule 5550(b).

The compliance was achieved through meeting the stockholders' equity requirement of $2.5 million, as reported in BloomZ's Form 20-F filing on February 14, 2025. The company reported stockholders' equity of $3,382,813 for the fiscal year ended September 30, 2024, exceeding the minimum requirement and resulting in the closure of this deficiency matter.

Positive

• Regained Nasdaq listing compliance, eliminating delisting risk
• Stockholders' equity of $3.38M, exceeding $2.5M minimum requirement

Negative

• Previously failed to meet Nasdaq listing requirements

Insights

Financial Analyst

BloomZ's regained Nasdaq compliance removes a critical existential threat for this micro-cap entertainment company. With $3.38 million in stockholders' equity now exceeding the $2.5 million minimum requirement by 35%, the company has established a modest but meaningful compliance buffer.

This development is particularly significant given BloomZ's $5.7 million market capitalization, where Nasdaq listing provides essential market visibility and liquidity. Companies delisted to OTC markets typically experience immediate value erosion of 25-50%, dramatically reduced trading volume, and exclusion from major indexes and institutional portfolios.

The stockholders' equity figure ($3.38M) compared to market cap ($5.7M) yields a price-to-book ratio of approximately 1.7, relatively reasonable for the entertainment sector. This suggests the market isn't placing a substantial premium on BloomZ's future growth prospects beyond its tangible assets.

For investors, this compliance resolution eliminates a significant risk factor that likely suppressed valuation. Companies under listing compliance pressure often make short-term decisions that harm long-term value (rushed capital raises, unfavorable financing terms, asset sales at discounted values). BloomZ can now refocus on operational execution in its core VTuber and voice actor management businesses rather than financial engineering to maintain listing status.

The critical question remains whether this compliance is sustainable or merely temporary. Without details on how BloomZ achieved this improvement in stockholders' equity, investors should closely monitor upcoming quarterly reports for evidence of genuine business improvement versus one-time financial maneuvers.

TOKYO, JP / ACCESS Newswire / February 26, 2025 / BloomZ Inc. (NASDAQ:BLMZ) ("BloomZ" or the "Company"), a Japanese audio production, VTuber, entertainment, and voice actor management company, today announced that it received formal notification from the Nasdaq Stock Market LLC ("Nasdaq") on February 19, 2025 that the Company has regained compliance with Nasdaq Listing Rule 5550(b), which requires the Company to meet at least one of the following standards: (1) stockholders' equity of at least $2.5 million; (2) market value of listed securities of at least $35 million; or (3) net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years.

The Nasdaq staff made this determination of compliance based on the Company's Form 20-F for the fiscal year ended September 30, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") on February 14, 2025, reporting the Company's stockholders' equity of $3,382,813 (converted from Japanese Yen as of September 30, 2024). Accordingly, the Company has regained compliance with Nasdaq Listing Rule 5550(b) by complying with the minimum $2.5 million stockholders' equity requirement under Nasdaq Listing Rule 5550(b)(1) and, therefore, this deficiency matter is now closed.

About BloomZ Inc.

BloomZ is a Cayman Islands holding company with an operating subsidiary, Kabushiki Kaisha BloomZ ("BloomZ Japan"), in Japan. BloomZ Japan is a Japanese audio producing and voice actor and VTuber managing company. BloomZ Japan has experienced staff who have worked on audio production for animations and video games for more than 10 years. BloomZ Japan also manages, cultivates and promotes voice actors and VTubers.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as "will," "expects," "anticipates," "aims," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time with the SEC. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

BloomZ Investor Contact

John Yi and Steven Shinmachi
Gateway Group, Inc.
949-574-3860
Email: bloomz@gateway-grp.com

SOURCE: BloomZ

View the original press release on ACCESS Newswire

FAQ

What was BloomZ's (BLMZ) stockholders' equity as of September 30, 2024?

BloomZ reported stockholders' equity of $3,382,813 as of September 30, 2024.

When did BloomZ (BLMZ) regain Nasdaq compliance?

BloomZ received formal notification of compliance from Nasdaq on February 19, 2025.

What are the minimum requirements for Nasdaq Rule 5550(b) that BLMZ needed to meet?

Companies must meet one of three standards: $2.5M stockholders' equity, $35M market value of listed securities, or $500,000 net income from continuing operations.

How did BloomZ (BLMZ) regain Nasdaq compliance?

BloomZ regained compliance by meeting the minimum $2.5M stockholders' equity requirement, reporting $3.38M in their Form 20-F filing.