Nova LifeStyle Receives Nasdaq Notification Regarding Minimum Bid Price Requirement

On December 27, 2024, Nova LifeStyle, Inc. (NASDAQ:NVFY) received a letter from the Nasdaq Stock Market, indicating that the closing bid price for the company’s common stock had been below $1.00 for 30 consecutive trading days. This notification implies that Nova LifeStyle does not currently meet the minimum bid price requirement for continued listing on Nasdaq, as outlined in Nasdaq Marketplace Rule 5550(a)(2).

Despite this development, the notification does not have an immediate impact on the listing of Nova LifeStyle’s common stock. In accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), the company has been granted a 180-day Compliance Period, extending until June 25, 2025, to regain compliance with the Minimum Bid Price Requirement. If Nova LifeStyle’s common stock bid price closes at or above $1.00 per share for a minimum of 10 consecutive business days before the end of the Compliance Period, Nasdaq will issue written confirmation of compliance.

In the event that Nova LifeStyle fails to meet the Minimum Bid Price Requirement by the conclusion of the Compliance Period, the company may be eligible for an additional 180-day extension to rectify the deficiency. To qualify for this extension, Nova LifeStyle must adhere to Nasdaq’s continued listing standards for The Nasdaq Capital Market, excluding the bid price requirement. The company would also need to provide written notice of its intent to address the deficiency, potentially through a reverse stock split if necessary.

Nova LifeStyle has affirmed its commitment to actively monitoring the bid price for its common stock leading up to the end of the Compliance Period. The company will explore all available options to rectify the deficiency and achieve compliance with the Minimum Bid Price Requirement.

The news of the Nasdaq notification places Nova LifeStyle in a critical phase, necessitating strategic decisions and swift action to ensure compliance with the exchange’s listing standards. Shareholders and stakeholders will now closely observe Nova LifeStyle’s efforts to address the bid price issue within the prescribed timeline to maintain its Nasdaq listing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Nova LifeStyle’s 8K filing here.

About Nova LifeStyle

Nova LifeStyle, Inc, through its subsidiaries, designs, manufactures, markets, and sells residential and commercial furniture for middle and upper middle-income consumers worldwide. The company offers upholstered, wood, and metal-based furniture pieces for the living, dining, and bedrooms, as well as home offices.