Yatra Online, Inc. Receives NASDAQ Notification Letter

Rhea-AI Summary

Yatra Online Inc. (NASDAQ: YTRA), India's leading corporate travel services provider, has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. The company's shares failed to maintain a minimum closing bid price of $1.00 between March 3, 2025, and April 14, 2025.

Yatra has been granted an initial 180-day compliance period until October 13, 2025, to meet the requirement. Compliance can be achieved if the stock closes at $1.00 or higher for at least 10 consecutive business days. If unsuccessful, the company may qualify for an additional 180-day period, provided it meets other Nasdaq Capital Market listing standards.

The company is monitoring the situation and may consider options including a potential reverse stock split to regain compliance, though success is not guaranteed.

Positive

• 180-day grace period granted to regain compliance
• Possibility of additional 180-day extension if criteria met
• Company maintains listing status during compliance period

Negative

• Stock price fallen below Nasdaq's minimum requirement of $1.00
• Risk of potential delisting from Nasdaq if compliance not achieved
• Company may need to implement reverse stock split, which could affect share value

Insights

Securities Regulatory Expert

Yatra faces Nasdaq compliance challenge due to share price below $1; has until October to regain compliance or face potential delisting.

Yatra Online's notification from Nasdaq represents a significant regulatory challenge that requires attention from investors. The company has failed to maintain the $1.00 minimum bid price requirement between March 3 and April 14, 2025, triggering Nasdaq's formal compliance process.

While not causing immediate delisting, this places Yatra under a 180-day remediation timeline ending October 13, 2025. To regain compliance, the stock must close at $1.00 or higher for at least 10 consecutive business days during this period. Given the current share price of $0.676, this would require approximately a 48% price increase.

If unsuccessful in the initial period, Yatra may qualify for an additional 180-day extension, provided they meet other Nasdaq Capital Market listing standards. The company has explicitly stated they're considering all available options, including a potential reverse stock split - a mechanical method to increase share price by reducing outstanding shares.

For context, this compliance issue affects many smaller Nasdaq-listed companies and follows a standardized regulatory process. However, the notification signals to the market that Yatra's share price has been underperforming the minimum threshold required by the exchange, creating a situation that management must address within the specified timeframe.

Gurugram, India and New York, New York--(Newsfile Corp. - April 21, 2025) - Yatra Online, Inc. (NASDAQ: YTRA) (the "Company"), India's leading corporate travel services provider and one of India's leading online travel companies, today announced that on April 15, 2025, the Company received a letter from the Listing Qualifications Department (the "Staff") of the Nasdaq Stock Market ("Nasdaq") notifying the Company that, for the period from March 3, 2025 to April 14, 2025, the Company's ordinary shares had not maintained a minimum closing bid price of $1.00 per share (the "Minimum Bid Price Requirement") pursuant to Nasdaq Listing Rule 5550(a)(2). The Nasdaq letter does not result in the immediate delisting of the Company's ordinary shares from The Nasdaq Capital Market.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A) (the "Compliance Period Rule"), the Company has been provided an initial period of 180 calendar days, or until October 13, 2025 (the "Compliance Date"), to regain compliance with the Minimum Bid Price Requirement. If, at any time during this 180-day period, the closing bid price for the Company's ordinary shares closes at $1.00 or more per share for a minimum of 10 consecutive business days, as required under the Compliance Period Rule, the Staff will provide written notification to the Company that it complies with the Minimum Bid Price Requirement and the ordinary shares will continue to be eligible for listing on The Nasdaq Capital Market.

If the Company does not regain compliance with the Minimum Bid Price Requirement by the Compliance Date, the Company may be eligible for an additional 180 calendar day compliance period. To qualify, the Company would have to meet the continued listing requirement for the market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, except for the Minimum Bid Price Requirement, and the Company would need to provide written notice to Nasdaq of its intention to cure the deficiency during the additional compliance period, by effecting a reverse stock split, if necessary.

The Company intends to monitor the closing bid price of its ordinary shares and may, if appropriate, consider available options to regain compliance with the Minimum Bid Price Requirement, which could include seeking to effect a reverse stock split. However, there can be no assurance that the Company will be able to regain compliance with the Minimum Bid Price Requirement, secure a second period of 180 days to regain compliance, or maintain compliance with any of the other Nasdaq continued listing requirements.

About Yatra

Yatra Online, Inc. is the ultimate parent company of Yatra Online Limited, India's leading corporate travel services provider with over 1200 corporate customers (post the acquisition of Globe Travels) and one of India's leading online travel companies. The Company provides information, pricing, availability and booking facility for domestic and international air travel, domestic and international hotel bookings, holiday packages, buses, trains, in city activities, inter-city and point-to-point cabs, homestays and cruises. With approximately 108K hotels and homestays contracted in approximately 1,500 cities across India, as well as approximately 2 million hotels around the world, the Company is India's largest platform for domestic hotels.

Forward-Looking Statements

Statements contained in this press release that relate to future results and events may constitute "forward-looking statements" within the meaning of safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company's current expectations, assumptions, estimates and projections. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "intend," "will," "project," "seek," "seem," "should" and similar expressions. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, the impact of increasing competition in the Indian travel industry and our expectations regarding the development of our industry and the competitive environment in which we operate; the slowdown in Indian economic growth and other declines or disruptions in the Indian economy in general and travel industry in particular, including disruptions caused by safety concerns, terrorist attacks, regional conflicts (including the ongoing conflict between Ukraine and Russia and the evolving events in Israel, Gaza and the Middle East), imposition of tariffs or other trade barriers, pandemics and natural calamities; our ability to successfully negotiate our contracts with airline suppliers and global distribution system service providers and mitigate any negative impacts on our Revenue that result from reduced commissions, incentive payments and fees we receive; the risk that airline suppliers (including our GDS service providers) may reduce or eliminate the commission and other fees they pay to us for the sale of air tickets; our ability to pursue strategic partnerships and the risks associated with our business partners; the potential impact of recent developments in the Indian travel industry, including the merger between Air India and Vistara, on our profitability and financial condition; political and economic stability in and around India and other key travel destinations; our ability to maintain and increase our brand awareness; our ability to realize the anticipated benefits of any past or future acquisitions; our ability to successfully implement our growth strategy; our ability to attract, train and retain executives and other qualified employees, and our ability to successfully implement any new business initiatives; our ability to effectively integrate artificial intelligence, machine learning and automated decision-making tools; non-compliance with Nasdaq's continued listing requirements and consequent delisting of our ordinary shares from Nasdaq; and our ability to simplify our multi-jurisdictional corporate structure or reduce resources and management time devoted to compliance requirements. These and other factors are discussed in our reports filed with the U.S. Securities and Exchange Commission. All information provided in this release is provided as of the date of issuance of this release, and we do not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Manish Hemrajani
Yatra Online, Inc.
VP, Head of Corporate Development and Investor Relations
ir@yatra.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249160

FAQ

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

If YTRA fails to meet the requirement by October 13, 2025, it may qualify for an additional 180-day compliance period if it meets other Nasdaq Capital Market listing standards and provides written notice of intention to cure the deficiency.

How can YTRA regain Nasdaq compliance before the October 2025 deadline?

YTRA can regain compliance if its stock closes at $1.00 or higher for a minimum of 10 consecutive business days before October 13, 2025, or potentially through a reverse stock split.

Will YTRA be immediately delisted from Nasdaq due to the price deficiency notice?

No, the notification does not result in immediate delisting. YTRA has until October 13, 2025, to regain compliance with the minimum bid requirement.

What is the minimum closing bid price required for YTRA to maintain Nasdaq listing?

YTRA must maintain a minimum closing bid price of $1.00 per share to comply with Nasdaq Listing Rule 5550(a)(2).