DeFi Technologies misses Nasdaq $1 deadline as DEFT faces delisting review

DeFi Technologies reached its Sept. 1 Nasdaq minimum-bid deadline after its US-listed DEFT shares closed Aug. 31 at $0.6032, making it impossible to complete the required 10-business-day streak at or above $1.

The threshold miss moves the company into an eligibility review, with either a second compliance window or a written delisting determination as the next formal outcome.

Nasdaq notified DeFi Technologies on March 5 that DEFT had closed below $1 for 30 consecutive business days as of March 4, and gave DeFi Technologies an initial 180-calendar-day period ending Sept. 1.

The stock's daily history through Aug. 31 showed every August close below $1, so a move above the threshold during the Sept. 1 session could not produce the required consecutive closing-price streak in time.

Nasdaq's test uses consecutive closing prices. DEFT entered the final day without an active qualifying streak, and the Aug. 31 close was about 40% below the $1 threshold. The company's March filing also said Nasdaq staff can require generally up to 20 consecutive business days before confirming compliance.

Extension or delisting notice

Nasdaq can grant a second 180-calendar-day period if DeFi Technologies satisfies the continued-listing requirement for the market value of publicly held shares and all other applicable initial standards for the Nasdaq Capital Market, apart from the bid-price rule.

The company must also notify Nasdaq in writing that it intends to cure the deficiency during the additional period.

If DeFi Technologies does not qualify, or Nasdaq staff concludes it cannot cure the deficiency during a second window, Nasdaq would issue written notice that the shares are subject to delisting. The company could appeal that determination to a Nasdaq hearings panel.

Shareholders have already authorized the board to conduct a share consolidation of up to 12-for-1. The annual meeting circular left the board to decide whether and when to use that authority, making the consolidation a contingency rather than a committed corporate action.

The authorization allows the board to choose a consolidation ratio up to the approved limit before the next annual meeting, or to take no action. That flexibility gives DeFi Technologies a mechanism for addressing the per-share requirement while leaving the decision dependent on its Nasdaq compliance path.

DeFi Technologies' Aug. 13 management filing still described the company as noncompliant and identified the authorized consolidation as a mechanism available to address the bid-price requirement. Company materials through Sept. 1 showed no scheduled or executed consolidation.

At 11:19 UTC on Sept. 1, the company's public newsroom and SEC submissions contained no announcement of a second compliance period, a delisting determination, regained compliance, or an executed consolidation.