ProPhase Labs shares fall 40.38% after-hours after Nasdaq delisting over $1 bid price failure; company appeals, seeks OTC.

ProPhase Labs fell 40.38% in after-hours trading following Nasdaq’s notification that the company failed to regain compliance with the $1.00 minimum bid price requirement, triggering a delisting process. Nasdaq announced plans to suspend trading on January 5, 2026, and file formal delisting paperwork, with ProPhase Labs stating it will appeal and seek over-the-counter quotation. The steep decline reflects investor reaction to the loss of Nasdaq listing status, which typically signals reduced liquidity and investor confidence, compounding concerns over the company’s ability to maintain market viability under regulatory standards.