Chanson International Holding Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Chanson International Holding (NASDAQ: CHSN) has received a notification from Nasdaq on March 10, 2025, regarding non-compliance with the minimum bid price requirement. The company's stock has traded below the required $1 per share threshold for 30 consecutive business days.

Nasdaq has granted CHSN a 180-day compliance period until September 8, 2025, to regain compliance. If unsuccessful, the company may be eligible for an additional 180-day period, provided it meets other listing requirements and demonstrates intention to cure the deficiency, potentially through a reverse stock split.

The notification has no immediate impact on CHSN's listing or trading status. However, failure to meet compliance requirements could result in delisting from Nasdaq. The company is currently evaluating options to address this issue, though there is no guarantee of success.

Positive

• Company remains listed on Nasdaq during compliance period
• 180-day grace period granted to resolve the issue
• Possibility of additional 180-day extension if criteria met

Negative

• Stock trading below $1 minimum requirement
• Risk of potential Nasdaq delisting if compliance not achieved
• May need to implement reverse stock split, potentially affecting shareholder value

Insights

Securities Regulation Analyst

Chanson International's receipt of a Nasdaq minimum bid price deficiency notice represents a significant compliance challenge with material implications for shareholders. The company's stock has traded below the critical $1 threshold for 30+ consecutive business days, triggering regulatory intervention.

The 180-day compliance window (until September 8, 2025) provides breathing room, but the company faces difficult decisions. With a micro-cap valuation of approximately $6.35 million, Chanson has flexibility. The most common remediation strategy—a reverse stock split—would artificially boost share price without addressing underlying market sentiment or fundamental valuation concerns.

What's particularly concerning is the language noting "no assurance" of regaining compliance. This standard disclosure takes on greater significance for a company with Chanson's market capitalization and share price ($0.2351). The gap between current trading and the $1 requirement is substantial, requiring a 325% price increase or a significant reverse split ratio.

A potential Nasdaq delisting would severely impact liquidity, institutional investor participation, and access to capital markets. While not an immediate operational threat, it represents a significant market-related headwind that management must prioritize addressing.

Corporate Governance Expert

This Nasdaq deficiency notice creates a critical governance challenge requiring immediate board attention. The $0.2351 current share price sits substantially below the $1 threshold, signaling persistent negative market perception that the board must address beyond mere technical compliance.

Management's statement that they're "evaluating options" lacks specificity about their strategic approach. While reverse stock splits technically resolve minimum price requirements, they don't address fundamental valuation concerns and often signal weakness to markets. With Chanson operating across two complex markets (China and US), the board needs to demonstrate a more comprehensive strategy to rebuild investor confidence.

The timing is particularly challenging as the company must simultaneously manage immediate compliance concerns while addressing the underlying factors driving weak share performance. The threat of potential delisting adds significant pressure, as moving to OTC markets would substantially reduce visibility, liquidity, and institutional investment eligibility.

This situation demands enhanced disclosure and investor communication. The board should articulate a clear path forward that addresses both technical compliance and underlying business performance concerns. The absence of specific remediation plans in this announcement represents a missed opportunity to reassure stakeholders during a period of heightened uncertainty.

URUMQI, China, March 13, 2025 (GLOBE NEWSWIRE) -- Chanson International Holding (NASDAQ: CHSN) (the “Company” or “Chanson”), a provider of bakery, seasonal, and beverage products through its chain stores in China and the United States, today announced that on March 10, 2025, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that, based on the closing bid price of its Class A ordinary shares over the past 30 consecutive business days, the Company no longer meets the continued listing requirement of Nasdaq under Nasdaq Listing Rules 5550(a)(2) to maintain a minimum bid price of $1 per share.

The notification has no immediate effect on the listing or trading of the Company’s Class A ordinary shares on Nasdaq. Nasdaq has provided the Company with a 180 calendar days compliance period, or until September 8, 2025, in which to regain compliance with Nasdaq continued listing requirement. In the event that the Company does not regain compliance in the compliance period, the Company may be eligible for an additional 180 calendar days, should the Company meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement, and is able to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. However, if it appears that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq will provide notice that the Company’s securities will be subject to delisting.

The Company is currently evaluating options to regain compliance and intends to timely regain compliance with Nasdaq’s continued listing requirement. Although the Company will use all reasonable efforts to achieve compliance with Rule 5550(a)(2), there can be no assurance that the Company will be able to regain compliance with that rule or will otherwise be in compliance with other Nasdaq continued listing requirement.

About Chanson International Holding

Founded in 2009, Chanson International Holding is a provider of bakery, seasonal, and beverage products through its chain stores in China and the United States. Headquartered in Urumqi, China, Chanson directly operates stores in Xinjiang, China and New York, United States. Chanson currently manages 46 stores in China, and three stores in New York City while selling on digital platforms and third-party online food ordering platforms. Chanson offers not only packaged bakery products but also made-in-store pastries and eat-in services, serving freshly prepared bakery products and extensive beverage products. Chanson aims to make healthy, nutritious, and ready-to-eat food through advanced facilities based on in-depth industry research, while creating a comfortable and distinguishable store environment for customers. Chanson’s dedicated and highly-experienced product development teams constantly create new products that reflect market trends to meet customer demand. For more information, please visit the Company’s website: http://ir.chanson-international.net/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For investor and media inquiries, please contact:

Chanson International Holding
Investor Relations Department
Email: IR@chansoninternational.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What is the deadline for Chanson International (CHSN) to meet Nasdaq's minimum bid requirement?

CHSN has until September 8, 2025 to regain compliance with the $1 minimum bid requirement.

What happens if CHSN stock doesn't reach $1 by the September 2025 deadline?

CHSN may receive an additional 180-day compliance period if it meets other listing requirements and shows plans to cure the deficiency.

Why did Nasdaq issue a deficiency notice to Chanson International (CHSN)?

CHSN's stock price traded below $1 for 30 consecutive business days, violating Nasdaq's minimum bid price requirement.

What options does Chanson International have to maintain its Nasdaq listing?

CHSN can attempt to raise its stock price naturally or implement a reverse stock split to meet the $1 minimum bid requirement.