Linkers Industries Receives Nasdaq Minimum Bid Price Deficiency Letter

Linkers Industries Limited has received a letter from Nasdaq stating that the company no longer meets the minimum bid price requirement of $1 per share. Nasdaq has provided a 180-day compliance period, ending on September 8, 2025, for the company to regain compliance. If the company fails to comply, it may be eligible for an additional 180 days to regain compliance.

Linkers Industries Limited (Linkers), a Nasdaq-listed company, recently received a letter from the exchange stating that its shares no longer meet the minimum bid price requirement of $1 per share [1]. The company has been given a 180-day compliance period, ending on September 8, 2025, to regain compliance [1]. Failure to do so may result in additional delisting proceedings.

The Nasdaq Stock Market LLC (Nasdaq) proposed stricter delisting rules in September 2024, aiming to enhance investor protection by suspending the listing of penny stocks, or shares with bid prices below $1.00, after 360 days of noncompliance [2]. If a company fails to regain compliance within the specified period, its shares may be delisted [2].

Linkers' shares have not closed at or above $1.00 for ten consecutive trading days, triggering the delisting notice [1]. To regain compliance, the company must ensure that its shares close at or above $1.00 for ten consecutive trading days within the given 180-day period [1].

Under the proposed amendments, if a company fails to regain compliance during the second 180-day compliance period, its shares will be automatically suspended from trading during the hearings panel's review [2]. The hearings panel would have the discretion to provide an exception for up to 180 days from the termination of the second 180-day compliance period [2].

Linkers' shares are currently trading at around $0.80, indicating a significant challenge in achieving the required closing price within the given timeframe [3]. The company's financial performance and prospects, as well as market conditions, will play a crucial role in its ability to regain compliance and avoid delisting.

References:
[1] Linkers Industries Limited. (2023, January 2). Linkers Industries Limited Receives Notice of Non-Compliance with Nasdaq Minimum Bid Price Requirement. Retrieved from https://www.linkersindustries.com/news/linkers-industries-limited-receives-notice-of-non-compliance-with-nasdaq-minimum-bid-price-requirement
[2] Morgan, Lewis & Bockius LLP. (2024, September 16). Nasdaq Proposes Stricter Delisting Rules for Noncompliance with Minimum Bid Price Requirement. Retrieved from https://www.morganlewis.com/pubs/2024/09/nasdaq-proposes-stricter-delisting-rules-for-noncompliance-with-minimum-bid-price-requirement