Wellchange Holdings Company Limited Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Wellchange Holdings (NASDAQ: WCT) has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. The company's shares have traded below the required $1.00 threshold for 33 consecutive business days from March 11 to April 25, 2025.

The Hong Kong-based enterprise software solution provider has been granted a 180-day compliance period until October 27, 2025, to address this issue. To regain compliance, the company's closing bid price must reach at least $1.00 per share for a minimum of ten consecutive business days.

If unable to meet the deadline, Wellchange may qualify for additional time by meeting other Nasdaq Capital Market listing requirements and providing written notice of its intention to cure the deficiency. The company is exploring all available options, including the possibility of a reverse stock split, while remaining committed to maintaining its Nasdaq listing.

Positive

• Company granted 180-day compliance period to regain Nasdaq listing requirements
• Potential eligibility for additional time period if needed
• Multiple options available to regain compliance, including reverse stock split

Negative

• Stock price below $1.00 for 33 consecutive business days
• Risk of Nasdaq delisting if minimum bid price requirement not met by October 27, 2025
• Potential need for reverse stock split, which could signal weakness to investors

Insights

Securities Market Analyst

Nasdaq's minimum bid price notification signals investor concern; Wellchange has 180 days to regain compliance or face potential delisting.

The notification Wellchange Holdings received represents a significant regulatory challenge that investors should monitor carefully. The company's shares have traded below Nasdaq's required $1.00 minimum threshold for 33 consecutive business days, triggering this compliance action. While this doesn't immediately affect the company's listing status, it initiates a critical remediation period.

Wellchange now has until October 27, 2025 to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. Prolonged sub-dollar trading typically signals deeper market concerns about a company's fundamentals, prospects, or capital structure.

The company's statement that it's "considering all available options" likely points to two primary remediation paths: either organically improving business performance to attract investors and naturally boost the share price, or implementing a reverse stock split (explicitly mentioned as a possibility). While reverse splits mechanically increase share price by reducing share count, they don't address underlying business challenges and are often viewed negatively by the market.

If Wellchange fails to regain compliance by the deadline, it may qualify for an additional grace period, but would need to meet all other Nasdaq Capital Market listing requirements except the bid price. The consequences of potential delisting would be significant: reduced liquidity, diminished institutional investor interest, restricted capital access, and potential reputational damage.

This notification represents a material regulatory challenge that adds pressure on management to implement effective strategies to restore investor confidence and share price performance.

New York, April 30, 2025 (GLOBE NEWSWIRE) -- Wellchange Holdings Company Limited (NASDAQ: WCT) ("Wellchange Holdings Company" or the "Company") is an enterprise software solution services provider headquartered in Hong Kong with diversified expansion strategies, today announced that it has received a notification letter from the Nasdaq Stock Market LLC ("Nasdaq") on April 28, 2025, indicating that the Company is not in compliance with Nasdaq’s minimum bid price requirement.

Nasdaq Listing Rule 5550(a)(2) requires that listed securities maintain a minimum bid price of $1.00 per share. The notification letter stated that the Company’s ordinary shares have failed to maintain this minimum bid price for the last 33 consecutive business days, from March 11, 2025, to April 25, 2025.

The notification does not immediately impact the listing or trading of the Company’s ordinary shares on Nasdaq. Under Nasdaq rules, the Company has been granted a compliance period of 180 calendar days, until October 27, 2025, to regain compliance. If, at any time during this period, the closing bid price of the Company’s stock is at least $1.00 per share for a minimum of ten consecutive business days, Nasdaq will confirm compliance, and the matter will be resolved.

If the Company is unable to regain compliance by October 27, 2025, it may be eligible for additional time. To qualify, the Company will be required to meet 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 will need to provide written notice of its intention to cure the deficiency during the second compliance period, which may include implementing a reverse stock split if necessary.

The Company is actively monitoring the bid price of its ordinary shares and is considering all available options to regain compliance with Nasdaq’s requirements. The Company remains committed to delivering value to its shareholders and maintaining its listing on Nasdaq.

About Wellchange Holdings Company Limited

Wellchange Holdings Company Limited is an enterprise software solution services provider headquartered in Hong Kong. The Company conducts all operations in Hong Kong through its operating subsidiary, Wching Tech Ltd Co. The Company provides customized software solutions, cloud-based software-as-a-service (“SaaS”) platforms, and “white-label” software design and development services. The Company’s mission is to empower our customers and users, in particular, small and medium businesses, to accelerate their digital transformation, optimize productivity, improve customer experiences, and enable resource-efficient growth with our low-cost, user-friendly, reliable and integrated all-in-one Enterprise Resource Planning software solutions.

For more information, please visit the Company’s website: https://www.wchingtech.com/

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, including the closing of the Offering, 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. 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. The Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to read the risk factors contained in the Company’s reports it files with the SEC before making any investment decisions regarding the Company’s securities. 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.

For investor and media inquiries, please contact:

Wellchange Holdings Company Limited

Shek Kin Pong, CEO

Email: contactus@wchingtech.com 

FAQ

Why did Wellchange (WCT) receive a Nasdaq deficiency notice in April 2025?

Wellchange (WCT) received a Nasdaq deficiency notice on April 28, 2025, because its stock price remained below the minimum requirement of $1.00 per share for 33 consecutive business days from March 11 to April 25, 2025.

What is the deadline for Wellchange (WCT) to meet Nasdaq's minimum bid price requirement?

Wellchange has until October 27, 2025 (180 calendar days) to regain compliance by maintaining a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days.

What happens if WCT stock doesn't reach $1.00 by October 2025?

If WCT fails to meet the $1.00 requirement by October 27, 2025, they may be eligible for additional time if they meet other Nasdaq Capital Market listing requirements and provide written notice to cure the deficiency, possibly through a reverse stock split.

Will Wellchange (WCT) be delisted from Nasdaq immediately due to the price deficiency?

No, the notification does not immediately impact WCT's listing or trading on Nasdaq. The company has been granted a 180-day compliance period until October 27, 2025, to meet the minimum bid requirement.

How can Wellchange (WCT) regain Nasdaq compliance in 2025?

WCT can regain compliance if its closing bid price stays at $1.00 or above for at least 10 consecutive business days before October 27, 2025. Options include natural price recovery or implementing a reverse stock split.