Mobile-health Network Solutions (Nasdaq: MNDR), a leading Asia-Pacific telehealth provider, announced it has received a delinquency notification from the Nasdaq Stock Market for non-compliance with the minimum bid price requirement. The notice, dated September 18, 2024, informed the company that the closing bid price of its Class A ordinary shares has been below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2). This development raises significant concerns about the company's stock performance and its continued listing on the Nasdaq exchange.
Despite the notification, MaNaDr's shares will continue to trade on Nasdaq under the symbol 'MNDR' without immediate interruption. The company has been granted a compliance period of 180 calendar days, until March 17, 2025, to address the issue and regain compliance with the minimum bid price requirement. To regain compliance, MaNaDr must maintain a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days during the compliance period. If successful, Nasdaq will provide written confirmation of compliance, and the matter will be resolved.
In the event that MaNaDr fails to meet the requirement by March 17, 2025, the company may be eligible for an additional 180-day grace period. To qualify for this extension, MaNaDr must meet all other Nasdaq Capital Market initial listing standards, except for the bid price requirement. The company would also need to provide written notice of its intention to cure the deficiency during the second compliance period. One potential solution mentioned in the announcement is the possibility of a reverse stock split. If MaNaDr chooses this option, it must complete the split no later than ten business days before the end of the compliance period or the expiration of the second compliance period if granted.
This situation highlights the challenges faced by publicly traded companies in maintaining compliance with stock exchange requirements. For MaNaDr, which was recently ranked #41 in the Financial Times 2024 listing of 500 High-growth Asia-Pacific Companies, this notification comes at a crucial time in its growth trajectory. The company operates as a telehealth provider, offering personalized medical attention to users worldwide through its MaNaDr platform. The company's services include teleconsultation, prescription fulfillment, and specialized care programs such as weight management and gender-specific care.
The impact of this notification extends beyond MaNaDr itself. It serves as a reminder to investors and other companies in the telehealth sector of the importance of maintaining strong stock performance to meet exchange requirements. The telehealth industry, which has seen significant growth in recent years, may face increased scrutiny as companies navigate the challenges of public markets. As MaNaDr works to address this compliance issue, stakeholders will be closely watching the company's strategies to boost its stock price and maintain its Nasdaq listing. The outcome of this situation could have implications for MaNaDr's market position, investor confidence, and its ability to continue expanding its telehealth services in the Asia-Pacific region and beyond. For more information about Mobile-health Network Solutions and its services, interested parties can visit https://investors.manadr.com/.
