BloomZ Receives Nasdaq Notification Regarding Minimum Market Value of Listed Securities

Rhea-AI Summary

BloomZ Inc., a Japanese audio production and voice actor management company, has received a notification from Nasdaq regarding non-compliance with the minimum market value requirement. The company's market value fell below the required $35 million for 30 consecutive business days. BloomZ (BLMZ) has been given until March 11, 2025, to regain compliance by maintaining a market value above $35 million for at least 10 consecutive business days.

If compliance is not achieved by the deadline, BloomZ may face delisting from Nasdaq, though it can appeal the decision. The company's management is exploring options to maintain its listing, and its business operations remain unaffected by this notification.

Positive

• Company has 180 days (until March 11, 2025) to regain compliance
• Ordinary shares continue to be listed and traded on Nasdaq during the compliance period
• Management is actively exploring options to regain compliance and maintain listing

Negative

• Company's market value fell below $35 million minimum requirement
• Risk of delisting from Nasdaq if compliance is not regained by March 11, 2025
• Potential negative impact on investor confidence and stock liquidity

Insights

Financial Analyst

BloomZ's notification from Nasdaq regarding non-compliance with the minimum market value requirement is a significant red flag for investors. With a market cap below $35 million, the company faces potential delisting if unable to boost its valuation by March 2025. This situation reflects weak investor confidence and could lead to reduced liquidity and access to capital. The 180-day compliance period offers a chance for recovery, but the company needs to demonstrate substantial growth or strategic changes to regain market trust. Investors should closely monitor BloomZ's efforts to increase market value, as failure could result in forced selling by institutional investors restricted to Nasdaq-listed stocks.

Market Research Analyst

This Nasdaq notification highlights BloomZ's struggle in the competitive audio production and voice actor management sector. The company's low market valuation suggests potential issues with revenue growth, profitability, or market positioning. To regain compliance, BloomZ might need to:

• Enhance its product offerings or services
• Expand into new markets
• Pursue strategic partnerships or acquisitions

Investors should watch for announcements regarding these strategies. The audio industry's rapid evolution, driven by AI and streaming technologies, presents both challenges and opportunities for BloomZ to innovate and capture market share. The company's ability to adapt and grow in this dynamic environment will be important for its Nasdaq listing and long-term viability.

Legal Expert

The Nasdaq notification to BloomZ carries significant legal and regulatory implications. While non-compliance doesn't immediately trigger delisting, it initiates a critical period where the company must demonstrate its ability to meet listing requirements. Failure to regain compliance could lead to:

• Delisting proceedings
• Potential shareholder lawsuits
• Increased regulatory scrutiny

BloomZ's management must carefully navigate this period, ensuring transparent communication with shareholders and exploring all available options to boost market value. The company should consider engaging securities counsel to guide compliance efforts and prepare for potential appeals if delisting becomes imminent. This situation underscores the importance of maintaining listing standards for investor protection and market integrity.

TOKYO, JAPAN / ACCESSWIRE / September 18, 2024 / BloomZ Inc. ("BloomZ" or the "Company"), a Japanese audio production and voice actor management company, announced today that, on September 12, 2024, it received a written notification (the "Notification Letter") from the Nasdaq Stock Market LLC advising the Company that it is not in compliance with the minimum market value of listed securities ("Minimum Market Value of Listed Securities Requirement") set forth in Nasdaq Listing Rules for continued listing on The Nasdaq Capital Market ("Nasdaq"). Nasdaq Listing Rule 5550(b)(2) requires companies to maintain a minimum market value of listed securities of $35 million. Nasdaq Listing Rule 5810(c)(3)(C) provides that a failure to meet the Minimum Market Value of Listed Securities Requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the market value of listed securities of the Company from July 29, 2024 to September 11, 2024, the Company did not meet the Minimum Market Value of Listed Securities Requirement.

The Notification Letter does not impact the Company's listing on Nasdaq at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company has been provided 180 calendar days, or until March 11, 2025 (the "Compliance Period"), to regain compliance with Nasdaq Listing Rule 5550(b)(2), which will be satisfied if, at any time during the Compliance Period, the market value of the Company's ordinary shares ("Ordinary Shares") closes at $35 million or more for a minimum of ten consecutive business days. During the Compliance Period, the Company expects that its Ordinary Shares will continue to be listed and traded on the Nasdaq. The Company intends to monitor the market value of its Ordinary Shares between now and March 11, 2025, and its management is looking into various options available to regain compliance and maintain its continued listing. In the event the Company does not regain compliance by March 11, 2025, the Company will be subject to delisting; however, it may appeal the delisting determination to Nasdaq's hearings panel.

The Company's business operations are not affected by the receipt of the Notification Letter.

About BloomZ Inc.
BloomZ is a Cayman Islands holding company with an operating subsidiary, Kabushiki Kaisha BloomZ ("BloomZ Japan"), in Japan. BloomZ Japan is a Japanese audio producing and voice actor and VTuber managing company. BloomZ Japan has experienced staff who have worked on audio production for animations and video games for more than 10 years. BloomZ Japan also manages, cultivates and promotes voice actors and VTubers.

Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

BloomZ Investor Contact
John Yi and Steven Shinmachi
Gateway Group, Inc.
949-574-3860
Email: bloomz@gateway-grp.com

SOURCE: BloomZ

View the original press release on accesswire.com

FAQ

Why did BloomZ (BLMZ) receive a notification from Nasdaq on September 12, 2024?

BloomZ (BLMZ) received a notification from Nasdaq because its market value of listed securities fell below the required $35 million minimum for 30 consecutive business days, violating Nasdaq Listing Rule 5550(b)(2).

What is the deadline for BloomZ (BLMZ) to regain compliance with Nasdaq's listing requirements?

BloomZ (BLMZ) has until March 11, 2025, to regain compliance with Nasdaq's minimum market value requirement.

How can BloomZ (BLMZ) regain compliance with Nasdaq's listing requirements?

BloomZ (BLMZ) can regain compliance if its market value closes at $35 million or more for a minimum of ten consecutive business days before March 11, 2025.

What happens if BloomZ (BLMZ) fails to regain compliance by March 11, 2025?

If BloomZ (BLMZ) fails to regain compliance by March 11, 2025, it may face delisting from Nasdaq, although it can appeal the delisting determination to Nasdaq's hearings panel.