Lead Real Estate Co., Ltd Announces Receipt of Nasdaq Delisting Determination
Lead Real Estate (LRE), a Japanese luxury real estate developer, received a delisting determination letter from Nasdaq on February 12, 2025. The notice states that LRE failed to maintain compliance with Nasdaq Listing Rule 5450(b)(1)(C), which requires a minimum market value of publicly held shares of $5,000,000.
Unless LRE appeals, trading of its American Depositary Shares will be suspended on February 21, 2025, followed by delisting procedures. The company plans to request a hearing by February 19, 2025, to appeal the determination, which would stay the suspension pending the Hearings Panel's decision.
Lead Real Estate (LRE), un sviluppatore immobiliare di lusso giapponese, ha ricevuto una lettera di determinazione di delisting da Nasdaq il 12 febbraio 2025. L'avviso afferma che LRE non è riuscita a mantenere il rispetto della Regola di Quotazione 5450(b)(1)(C) di Nasdaq, che richiede un valore di mercato minimo delle azioni pubblicamente detenute di $5.000.000.
Se LRE non presenterà appello, il trading delle sue Azioni di Deposito Americane sarà sospeso il 21 febbraio 2025, seguita dalle procedure di delisting. L'azienda prevede di richiedere un'udienza entro il 19 febbraio 2025 per appellarsi alla determinazione, il che sospenderebbe la sospensione in attesa della decisione del Panel delle Udienze.
Lead Real Estate (LRE), un desarrollador japonés de bienes raíces de lujo, recibió una carta de determinación de deslistado de Nasdaq el 12 de febrero de 2025. El aviso indica que LRE no cumplió con la Regla de Cotización 5450(b)(1)(C) de Nasdaq, que requiere un valor de mercado mínimo de acciones en circulación de $5,000,000.
A menos que LRE presente apelación, la negociación de sus Acciones de Depósito Americanas será suspendida el 21 de febrero de 2025, seguida de los procedimientos de deslistado. La empresa planea solicitar una audiencia antes del 19 de febrero de 2025 para apelar la determinación, lo que suspendería la suspensión mientras se espera la decisión del Panel de Audiencias.
Lead Real Estate (LRE)는 일본의 고급 부동산 개발업체로, 2025년 2월 12일 나스닥으로부터 상장 폐지 결정 통지를 받았습니다. 이 통지서에는 LRE가 나스닥 상장 규칙 5450(b)(1)(C)를 준수하지 못했으며, 이는 공개 유통 주식의 최소 시장 가치가 $5,000,000이어야 한다고 명시되어 있습니다.
LRE가 항소하지 않는 한, 그들의 미국 예탁 주식 거래는 2025년 2월 21일에 중단되며, 이후 상장 폐지 절차가 진행됩니다. 이 회사는 2025년 2월 19일 이전에 결정에 대한 항소를 요청할 계획이며, 이는 청문위원회의 결정이 나올 때까지 중단을 유예하게 됩니다.
Lead Real Estate (LRE), un développeur immobilier de luxe japonais, a reçu le 12 février 2025 une lettre de détermination de radiation de la part de Nasdaq. L'avis indique que LRE n'a pas respecté la Règle de Cotation 5450(b)(1)(C) de Nasdaq, qui exige une valeur marchande minimale des actions détenues publiquement de 5 000 000 $.
À moins que LRE ne fasse appel, le négociation de ses Actions de Dépôt Américaines sera suspendue le 21 février 2025, suivie des procédures de radiation. L'entreprise prévoit de demander une audience d'ici le 19 février 2025 pour contester la décision, ce qui suspendrait la suspension en attendant la décision du Panel des Audiences.
Lead Real Estate (LRE), ein japanischer Luxusimmobilienentwickler, erhielt am 12. Februar 2025 ein Schreiben über die Feststellung der Delistung von Nasdaq. Die Mitteilung besagt, dass LRE die Anforderungen der Nasdaq-Listing-Regel 5450(b)(1)(C) nicht eingehalten hat, die einen Mindestmarktwert der öffentlich gehaltenen Aktien von 5.000.000 $ erfordert.
Sofern LRE keinen Einspruch erhebt, wird der Handel mit seinen American Depositary Shares am 21. Februar 2025 ausgesetzt, gefolgt von den Delisting-Verfahren. Das Unternehmen plant, bis zum 19. Februar 2025 eine Anhörung zu beantragen, um gegen die Feststellung Einspruch zu erheben, was die Aussetzung bis zur Entscheidung des Anhörungsausschusses aussetzen würde.
- None.
- Company faces potential delisting from Nasdaq Global Market
- Failed to maintain required $5,000,000 minimum market value of publicly held shares
- Trading suspension scheduled for February 21, 2025, if appeal is not filed
Insights
The Nasdaq delisting determination for Lead Real Estate (LRE) represents a critical regulatory challenge that could fundamentally alter the company's market accessibility and investor base. The core issue stems from LRE's failure to maintain a $5 million minimum market value of publicly held shares, a key Nasdaq Global Market requirement that serves as a vital indicator of market depth and trading liquidity.
The immediate implications are significant: without a successful appeal, LRE's securities will be suspended from trading on February 21, 2025. While the company has indicated its intention to appeal, which would temporarily stay the delisting process, historical precedents suggest that companies facing similar situations typically face three potential outcomes: 1) successfully appealing and regaining compliance through improved market performance, 2) transitioning to lower-tier markets such as OTC markets, or 3) pursuing alternative strategic options such as going private.
For current shareholders, this development introduces substantial uncertainty. A delisting typically results in:
- Reduced trading liquidity and potential pricing inefficiencies
- access to institutional investors who may have mandate restrictions against holding non-listed securities
- Increased challenges in accessing U.S. capital markets for future funding needs
- Higher volatility due to decreased market making activity
The timing of this development is particularly noteworthy as it comes amid broader challenges in the Japanese real estate market. The company's struggle to maintain the required market value threshold may reflect both company-specific issues and broader sector headwinds affecting investor confidence in Japanese real estate developers with international listings.
TOKYO, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Lead Real Estate Co., Ltd (Nasdaq: LRE) (“LRE” or “the Company”), a Japanese real estate developer of luxury residential properties, including single-family homes and condominiums across Tokyo, Kanagawa prefecture and Sapporo, today announced that the Company received a staff determination letter (the “Letter”) on February 12, 2025 from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”), notifying the Company of the determination from the Nasdaq staff (the “Staff”) to delist the Company’s securities from The Nasdaq Global Market because the Company has not regained compliance with Nasdaq Listing Rule 5450(b)(1)(C), which requires a market value of publicly held shares of at least
Pursuant to the Letter, unless the Company requests an appeal of the Staff’s determination, trading of the Company’s American Depositary Shares will be suspended at the opening of business on February 21, 2025, and a Form 25-NSE will be filed with the U.S. Securities and Exchange Commission, which will remove the Company’s securities from listing and registration on The Nasdaq Stock Market.
The Letter stated that the Company may appeal Staff’s determination to a Hearings Panel pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series. A hearing request will stay the suspension of the Company’s securities and the filing of the Form 25-NSE pending the Hearings Panel’s decision. The Company intends to request a hearing to appeal the Staff’s delisting determination by 4:00 p.m. (Eastern Time) on February 19, 2025.
About Lead Real Estate Co., Ltd
Lead Real Estate Co., Ltd is a Japanese developer of luxury residential properties, including single-family homes and condominiums, across Tokyo, Kanagawa prefecture, and Sapporo. In addition, the Company operates hotels in Tokyo and leases apartment building units to individual customers in Japan and Dallas, Texas.
The Company’s mission is to serve its customers by offering stylish, safe, and luxurious living. The Company’s vision is to adopt the Kaizen (continuous improvement) approach to seek to improve its operations, and to leverage its nationally recognized, award-winning luxury homes and strong market position in the luxury residential property market in Tokyo, Kanagawa prefecture, and Sapporo to create a global transaction platform allowing access to prime Japanese condominiums as well as overseas condominiums, including in the U.S. and Hong Kong.
For more information, please visit the Company’s website at https://www.lead-real.co.jp/en/.
Forward-looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors that may affect its future results in the Company's registration statement and in its other filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact Information:
For Media and Investor Relations
Daisuke Takahashi
Chief Financial Officer
Lead Real Estate Co., Ltd
d-takahashi@lead-real.co.jp
+81 3-5784-5127
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the America’s, 5th Floor
New York, NY 10036
Office: (646) 893-5835
Email: info@skylineccg.com
FAQ
Why is Lead Real Estate (LRE) being delisted from Nasdaq?
When will LRE stock be suspended from trading on Nasdaq?
What options does LRE have to prevent delisting from Nasdaq?
What happens to LRE shares if the company gets delisted?
