Jeffs’ Brands Receives NASDAQ Minimum Bid Price Requirement Extension

Rhea-AI Summary

Jeffs' Brands (Nasdaq: JFBR) has received a 180-day extension from Nasdaq until April 21, 2025, to regain compliance with the minimum $1 bid price requirement. The company failed to meet this requirement during the initial compliance period ending October 22, 2024. To maintain listing, JFBR must achieve a closing bid price of $1 or above for at least 10 consecutive trading days before the new deadline. The company meets all other Nasdaq Capital Market listing requirements except the bid price rule. Trading continues normally under symbol JFBR during this extension period.

Positive

• Company meets all Nasdaq Capital Market listing requirements except bid price
• Received additional 180-day extension to maintain Nasdaq listing
• Trading continues normally without immediate impact

Negative

• Failed to maintain minimum $1 bid price requirement for over 180 days
• May need to implement reverse stock split to maintain listing
• Risk of potential delisting if compliance not achieved by April 21, 2025

Insights

Financial Analyst

The 180-day extension from Nasdaq provides JFBR critical breathing room but highlights serious underlying concerns. With a market cap of just $2.7M, the company faces significant challenges in maintaining its listing status. The stock's persistent inability to maintain the $1 minimum bid requirement suggests deep-rooted market skepticism about the company's fundamentals. While a reverse split remains a potential technical solution, such moves often fail to address core business challenges and can lead to further price deterioration. The extension through April 2025 offers temporary relief, but investors should closely monitor the company's strategic initiatives to naturally boost share value. The risk of eventual delisting remains substantial without meaningful operational improvements or strategic alternatives.

No Immediate Effect on Nasdaq Listing or Trading of the Company’s Ordinary Shares

Tel Aviv, Israel, Oct. 24, 2024 (GLOBE NEWSWIRE) --  Jeffs' Brands Ltd (“Jeffs’ Brands” or the “Company”) (Nasdaq: JFBR, JFBRW), a data-driven e-commerce company operating on the Amazon Marketplace, announced today that on October 23, 2024, it received a letter from The Nasdaq Stock Market LLC ("Nasdaq"), notifying the Company that it is eligible for an additional 180 calendar day period, or until April 21, 2025, to regain compliance with the Nasdaq's minimum $1 bid price per share requirement.

The Company was first notified by Nasdaq of its failure to maintain a minimum bid price of $1 per share for 30 consecutive trading days under Nasdaq Listing Rule 5550(a)(2) on April 25, 2024, and was given until October 22, 2024 to regain compliance. The Company did not regain compliance with the minimum $1 bid price per share requirement during the first 180-calendar-day compliance period and submitted a written request to the Nasdaq’s staff to afford it an additional 180-day compliance period to cure the deficiency.

Nasdaq’s determination is based on the Company meeting the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the Nasdaq Capital Market, with the exception of the bid price requirement, and the Company’s written notice of its intention to cure the deficiency during the second compliance period and if necessary, by effecting a reverse share split.

If at any time before April 21, 2025, the bid price of the Company's ordinary shares closes at or above $1 per share for a minimum of 10 consecutive trading days, the Company will regain compliance with the Nasdaq Listing Rules, and the matter will be closed. However, Nasdaq may, in its discretion, require the Company’s ordinary shares to maintain a bid price of at least $1.00 for a period in excess of ten consecutive business days, but generally no more than 20 consecutive business days, before determining that the Company has demonstrated an ability to maintain long-term compliance.

This current notification from Nasdaq has no immediate effect on the listing or trading of the Company’s ordinary shares, which will continue to trade on the Nasdaq Capital Market under the symbol “JFBR.”

About Jeffs’ Brands Ltd

Jeffs' Brands aims to transform the world of e-commerce by creating and acquiring products and turning them into market leaders, tapping into vast, unrealized growth potential. Through the Company’s management team’s insight into the FBA Amazon business model, it aims to use both human capability and advanced technology to take products to the next level. For more information on Jeffs’ Brands Ltd visit https://jeffsbrands.com.

Forward-Looking Statement Disclaimer

This press 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, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, we are using forward-looking statements when discussing regaining compliance with Nasdaq’s continued listing requirements, and the timing and effect thereof as well as potentially effecting a reverse share. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to adapt to significant future alterations in Amazon’s policies; our ability to sell our existing products and grow our brands and product offerings, including by acquiring new brands; our ability to meet our expectations regarding the revenue growth and the demand for e-commerce; the overall global economic environment; the impact of competition and new e-commerce technologies; general market, political and economic conditions in the countries in which we operate; projected capital expenditures and liquidity; the impact of possible changes in Amazon’s policies and terms of use; the impact of the conditions in Israel, including the recent attacks by Hamas, Iran, and other terrorist organizations; and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (“SEC”), on April 1, 2024 and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Investor Relations Contact:

Michal Efraty
Adi and Michal PR- IR
Investor Relations, Israel
michal@efraty.com

FAQ

What is the deadline for Jeffs' Brands (JFBR) to meet Nasdaq's minimum bid requirement?

Jeffs' Brands has until April 21, 2025, to meet Nasdaq's minimum bid requirement of $1 per share.

How can Jeffs' Brands (JFBR) regain Nasdaq compliance?

JFBR can regain compliance if its stock closes at or above $1 per share for a minimum of 10 consecutive trading days before April 21, 2025, or by implementing a reverse stock split if necessary.

Will JFBR continue trading on Nasdaq during the extension period?

Yes, JFBR will continue trading normally on the Nasdaq Capital Market under the symbol 'JFBR' during the extension period.