JBDI HOLDINGS LIMITED ANNOUNCES RECEIPT OF NASDAQ NOTIFICATION LETTER REGARDING MINIMUM BID PRICE DEFICIENCY

Rhea-AI Summary

JBDI Holdings has received a notification from Nasdaq on December 12, 2024, indicating non-compliance with the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market. The company has been given until June 10, 2025 to regain compliance by maintaining a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days.

While trading continues under the symbol 'JBDI', the company is monitoring the situation and considering options including a potential reverse stock split. If compliance isn't achieved by the deadline, JBDI may receive an additional 180-day extension to meet the requirement.

Positive

• None.

Negative

• Stock price has fallen below $1.00, triggering Nasdaq minimum bid price deficiency notice
• Risk of potential delisting from Nasdaq if compliance is not achieved by June 10, 2025
• Possible reverse stock split may be necessary to maintain listing

Insights

Financial Analyst

The Nasdaq deficiency notice represents a significant challenge for JBDI Holdings, with its stock trading below $1.00 for an extended period. With a relatively small market cap of $11.6M, this compliance issue raises concerns about potential delisting risks. The company has until June 2024 to meet the minimum bid requirement, with a possible 180-day extension. The most likely remedy would be a reverse stock split, which while mathematically neutral, often carries negative market sentiment and can lead to increased volatility. Historical patterns show that companies implementing reverse splits to maintain listing compliance frequently experience continued downward pressure on their stock price. Investors should closely monitor the company's strategic response and any fundamental business improvements that could naturally support the share price.

SINGAPORE, Dec. 16, 2024 (GLOBE NEWSWIRE) -- JBDI Holdings Limited (Nasdaq: JBDI) (“JBDI” or the “Company”) today announced that it received a delinquency notification letter (the "Notice") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") on December 12, 2024 indicating that JBDI is not currently in compliance with the $1.00 minimum bid price requirement for continued listing of the Company’s ordinary shares (the “Ordinary Shares”) on the Nasdaq Capital Market, as set forth in Nasdaq Listing Rules (the “Minimum Bid Price Requirement”). The Notice indicated that the Company has 180 days, or until June 10, 2025 (the “Compliance Deadline”), to regain compliance with the Minimum Bid Price Requirement by having the closing bid price of the Ordinary Shares meet or exceed $1.00 per Ordinary Share for at least ten consecutive business days.

The Notice has no immediate effect on the listing of the Company’s Ordinary Shares, which continue to trade on The Nasdaq Capital Market under the symbol “JBDI”. The Company intends to monitor the closing bid price of its Ordinary Shares and may, if appropriate, consider implementing available options to regain compliance with the Minimum Bid Price Requirement, including a reverse stock split (i.e., a share consolidation). If the Company does not regain compliance by the Compliance Deadline, the Company may be afforded an additional 180 calendar day period to regain compliance as provided by the Nasdaq Listing Rules.

About JBDI Holdings Limited
JBDI Holdings Limited is a leading provider of environmentally friendly and efficient products and services, specializing in the revitalization, reconditioning, and recycling of drums and related containers in Singapore and across Southeast Asia. With nearly four decades of industry experience, JBDI Holdings has established a strong reputation for quality and reliability, offering a wide range of reconditioned steel and plastic drums, new containers, and ancillary services. Our mission is to help our customers achieve a zero environmental impact footprint while optimizing resource allocation and reducing costs. For more information, please visit http://jbdi.barrels.com.sg.

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

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 identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” 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, which are available for review at www.sec.gov.

FAQ

What is the deadline for JBDI to meet Nasdaq's minimum bid price requirement?

JBDI has until June 10, 2025, to meet Nasdaq's minimum bid price requirement by maintaining a closing bid price of at least $1.00 per share for ten consecutive business days.

What happens if JBDI fails to meet the $1.00 minimum bid requirement by June 2025?

If JBDI fails to meet the requirement by June 10, 2025, they may be eligible for an additional 180-day extension to regain compliance according to Nasdaq Listing Rules.

What options is JBDI considering to regain Nasdaq compliance?

JBDI is considering implementing available options including a potential reverse stock split (share consolidation) to regain compliance with the minimum bid price requirement.

Will JBDI stock continue trading on Nasdaq during the compliance period?

Yes, JBDI's ordinary shares will continue trading on the Nasdaq Capital Market under the symbol 'JBDI' during the compliance period.