Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Davis Commodities (DTCK) received a notification from Nasdaq on March 19, 2025, regarding non-compliance with the minimum bid price requirement. The company's stock failed to maintain the required $1 per share minimum bid price between February 3 and March 18, 2025.

The notification has no immediate impact on the listing status. Nasdaq has granted DTCK a 180-day compliance period until September 15, 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 company is evaluating options to regain compliance but acknowledges no guarantee of success in meeting Nasdaq's requirements.

Positive

• Company granted 180-day compliance period to address listing deficiency
• Potential eligibility for additional 180-day extension if needed
• No immediate impact on current Nasdaq listing status

Negative

• Stock trading below $1 minimum bid requirement
• Risk of potential delisting from Nasdaq if compliance not achieved
• May need to implement reverse stock split to maintain listing
• No guarantee of successful compliance with listing requirements

Insights

Financial Regulatory Expert

The Nasdaq deficiency notice received by Davis Commodities represents a significant regulatory challenge that investors should monitor closely. The company has traded below the critical $1 threshold from February through mid-March 2025, triggering Nasdaq's compliance mechanism.

While the initial 180-day compliance period (until September 15, 2025) provides breathing room, the company faces meaningful hurdles. At the current $0.9375 share price, Davis Commodities needs approximately a 7% increase to cross the minimum bid requirement and must maintain that level for at least 10 consecutive trading days to regain compliance.

The most likely remediation path involves a reverse stock split, which would mechanically increase the share price without changing fundamental value. However, such actions typically signal underlying weakness and often lead to additional selling pressure post-implementation.

Should Davis fail to remedy the situation within the initial period, a secondary 180-day extension remains possible if the company meets all other Nasdaq Capital Market listing standards. However, eventual delisting would substantially impact liquidity, institutional ownership eligibility, and access to capital markets.

The extended period below $1 suggests persistent market concerns about fundamentals rather than temporary price volatility. With a micro-cap valuation ($23 million), the company has financial flexibility to address this situation through operational improvements alone.

SINGAPORE, March 21, 2025 (GLOBE NEWSWIRE) -- Davis Commodities Limited (the “Company”) announced that, on March 19, 2025, the Company received a letter from the Listing Qualifications staff of The Nasdaq Stock Market (“Nasdaq”) notifying the Company that based on the closing bid price of the Company for the period from February 3, 2025 to March 18, 2025, the Company no longer meets the continued listing requirement of Nasdaq under Nasdaq Listing Rule 5550(a)(2), to maintain a minimum bid price of $1 per share.

The notification has no immediate effect on the listing of the Company’s ordinary shares. Nasdaq has provided the Company with a 180 calendar days compliance period, or until September 15, 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.

Forward-Looking Statements

Certain statements in this press release 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 in this press release. 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 filings with the SEC.

About Davis Commodities Limited

Davis Commodities Limited is a Singapore-based investment holding company with an extensive footprint in the global agricultural commodities market. The company specializes in the trading and distribution of staples such as sugar, rice, and edible oils, with a strong presence across Asia, Africa, and the Middle East. As a Nasdaq-listed entity, Davis Commodities is committed to delivering value through diversification, innovation, and sustainable business practices.

For more information, please contact:

Davis Commodities Limited
Investor Relations Department
Email: investors@daviscl.com

Celestia Investor Relations
Dave Leung
Phone: +852 9494-3413
Email: investors@celestiair.com

FAQ

What is the deadline for Davis Commodities (DTCK) to meet Nasdaq's minimum bid price requirement?

DTCK has until September 15, 2025 to regain compliance with the $1 minimum bid price requirement.

What happens if DTCK fails to meet Nasdaq's $1 minimum bid price requirement by September 2025?

DTCK may receive an additional 180-day compliance period if it meets other listing requirements and shows plans to cure the deficiency, such as through a reverse stock split.

What triggered Nasdaq's deficiency notice to DTCK in March 2025?

DTCK's stock closing bid price fell below $1 per share during the period from February 3 to March 18, 2025.

Will DTCK be immediately delisted from Nasdaq due to the bid price deficiency?

No, the notification has no immediate effect on DTCK's listing status. The company has been given time to regain compliance.