NextPlat Corp Receives Nasdaq Notification Regarding Minimum Bid Requirements

Rhea-AI Summary

NextPlat (NASDAQ: NXPL) has received notification from Nasdaq regarding non-compliance with the minimum bid price requirement, as its shares traded below $1.00 for 30 consecutive business days. The company has been granted a 180-day period until October 27, 2025 to regain compliance by maintaining a closing bid price above $1.00 for at least 10 consecutive business days.

CEO Charles M. Fernandez addressed challenges including drug pricing issues and US-China tariff impacts on their e-Commerce operations. The company is focusing on:

• Reducing operating expenses
• Improving business efficiency
• Maximizing cash position value

If compliance isn't achieved by the deadline, NextPlat may qualify for an additional 180-day period. The company's shares will continue trading on Nasdaq during this period while management explores options to address the deficiency.

Positive

• Company has been granted 180 days to regain Nasdaq compliance
• Potential for additional 180-day extension if certain conditions are met
• Management actively working on cost reduction and operational efficiency
• Company maintains sizable cash position

Negative

• Stock price fallen below $1.00 for 30 consecutive business days
• Risk of potential Nasdaq delisting if compliance not achieved
• Facing challenges from drug pricing and reimbursement rates in healthcare operations
• Experiencing impact from US-China tariff escalations affecting e-Commerce development

Insights

Financial Analyst

NextPlat faces Nasdaq compliance challenge with stock below $1.00, given 180 days to remedy while confronting operational headwinds.

NextPlat Corp has received a Nasdaq notification regarding non-compliance with the exchange's minimum bid price requirement. The company's closing bid price has remained below $1.00 per share for 30 consecutive business days, triggering this regulatory notification. This represents a significant challenge that must be addressed to maintain the company's Nasdaq listing status.

The compliance timeline provides NextPlat with a 180-calendar day period (until October 27, 2025) to regain compliance. The specific requirement is clear: the company's closing bid price must meet or exceed $1.00 for at least 10 consecutive business days during this period. If unsuccessful, NextPlat may qualify for a second 180-day compliance period, provided it meets other Nasdaq listing standards.

NextPlat's management has acknowledged specific operational challenges contributing to their current situation. CEO Charles Fernandez directly referenced "ongoing drug pricing and reimbursement rates" affecting healthcare operations and "unprecedented tariff escalations between the United States and China" impacting e-Commerce development efforts. These external pressures appear to be constraining business performance.

The company's stated response strategy includes efforts to "reduce operating expenses" and "improve the efficiency of the business" while leveraging what management describes as their "sizable cash position." However, no specific remediation plan for addressing the share price deficiency was detailed in the announcement.

The consequences of continued non-compliance could ultimately lead to delisting from Nasdaq, which would potentially impact share liquidity and investor access. However, the company has multiple months to address this issue, and many companies successfully navigate through similar compliance challenges.

COCONUT GROVE, Fla., April 28, 2025 /PRNewswire/ -- NextPlat Corp (NASDAQ: NXPL, NXPLW) ("NextPlat" or the "Company"), a global e-Commerce provider, announced today that it has received written notice (the "Notice") from the Nasdaq Stock Market LLC indicating that the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2), as the Company's closing bid price for common shares were below $1.00 per share for the last 30 consecutive business days.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been granted a 180-calendar day compliance period, or until October 27, 2025, to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company's common shares must meet or exceed $1.00 per share for at least 10 consecutive business days during the 180-calendar day compliance period.

If the Company is not in compliance by October 27, 2025, the Company may be afforded a second 180-calendar day compliance period. To qualify for this additional time, the Company will be required to meet the continued listing requirement for the market value of publicly held shares and all other initial listing standards for Nasdaq with the exception of the minimum bid price requirement and will need to provide written notice of its intention to cure the deficiency during the second compliance period. If the Company does not regain compliance within the allotted compliance period(s), including any extensions that may be granted by Nasdaq, Nasdaq will provide notice that the Company's common shares will be subject to delisting.

Charles M. Fernandez, Executive Chairman and CEO of NextPlat Corp, said, "Our team is actively responding to ongoing drug pricing and reimbursement rates in our healthcare operations and the unprecedented tariff escalations between the United States and China which will impact our future e-Commerce development efforts. Across the organization, we are working to reduce operating expenses, improve the efficiency of the business and maximize the value of our sizable cash position. We believe there are opportunities to address the broader challenges we are facing while protecting shareholder value."

The Company intends to monitor the closing bid price of its common shares between now and October 27, 2025 and intends to consider available options to cure the deficiency and regain compliance with the minimum bid price requirement within the compliance period. The Company's common shares will continue to be listed and trade on the Nasdaq Capital Market during this period, unaffected by the receipt of the written notice from Nasdaq.

This announcement is made in compliance with Nasdaq Listing Rule 5810(b), which requires prompt disclosure of receipt of a deficiency notification.

For more information about NextPlat, please visit www.NextPlat.com and connect with us on Facebook, LinkedIn and X.

About NextPlat Corp
NextPlat is a global e-commerce platform company created to capitalize on multiple high-growth sectors and markets including technology and healthcare. Through acquisitions, joint ventures and collaborations, the Company intends to assist businesses in selling their goods online, domestically, and internationally, allowing customers and partners to optimize their e-Commerce presence and revenue. NextPlat currently operates an e-Commerce communications division offering voice, data, tracking, and IoT products and services worldwide as well as pharmacy and healthcare data management services in the United States through its subsidiary, Progressive Care LLC.

Forward-Looking Statements
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services, or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

Media and Investor Contact for NextPlat Corp:

Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net

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SOURCE NextPlat Corp.

FAQ

Why did NextPlat (NXPL) receive a Nasdaq delisting notice in April 2025?

NextPlat received a Nasdaq notification because its stock price remained below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). The company has until October 27, 2025, to regain compliance by maintaining a closing bid price above $1.00 for at least 10 consecutive business days.

What happens if NXPL stock doesn't meet Nasdaq's $1 minimum bid requirement by October 2025?

If NXPL fails to meet the minimum bid requirement by October 27, 2025, they may qualify for a second 180-day compliance period. If compliance isn't achieved after extensions, Nasdaq will issue a delisting notice for NXPL's common shares.

How is NextPlat (NXPL) planning to address its stock price challenges?

NextPlat is responding by reducing operating expenses, improving business efficiency, and maximizing its cash position. The company is also addressing challenges related to drug pricing, reimbursement rates, and U.S.-China tariff escalations affecting their e-Commerce development.

What is the deadline for NextPlat (NXPL) to regain Nasdaq compliance?

NextPlat has until October 27, 2025 (180 calendar days) to regain compliance with Nasdaq's minimum bid requirement. The company must maintain a closing bid price of at least $1.00 per share for 10 consecutive business days during this period.

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

Yes, NextPlat's common shares will continue to trade on the Nasdaq Capital Market during the compliance period, unaffected by the deficiency notice, while the company works to meet the minimum bid requirement.