Bon Natural Life Limited Announces Receipt of Nasdaq Delisting Notifications

Rhea-AI Summary

Bon Natural Life Limited (BON) has received two delisting notifications from Nasdaq. The first notification on April 29, 2025, cited non-compliance with the Minimum Bid Price Requirement as BON's shares traded below $1.00 for 30 consecutive business days. Additionally, the stock traded at $0.10 or less for 10 consecutive days, making it ineligible for a compliance period. The second notification on May 1, 2025, indicated Nasdaq's determination to delist BON due to public interest concerns related to the company's March 2025 best efforts offering. BON has filed an appeal and requested a hearing, which temporarily stays the delisting process pending the Panel's decision.

Positive

• None.

Negative

• Stock price fell below $1.00 for 30 consecutive business days
• Shares traded at $0.10 or less for 10 consecutive days
• Company faces potential delisting from Nasdaq
• No compliance period eligibility due to severe price decline
• Public interest concerns raised regarding March 2025 offering

Insights

Financial Regulatory Expert

Multiple Nasdaq delisting notifications on serious grounds with limited remediation options signals significant investor risk.

The delisting notifications Bon Natural Life has received are particularly severe for several reasons. First, the company faces not just one but multiple compliance failures - failing the $1.00 minimum bid requirement and having shares trade at $0.10 or less for ten consecutive days. Most concerning is Nasdaq's invocation of Rule 5101, their discretionary authority to delist based on "public interest concerns" related to the company's March 2025 offering.

This discretionary determination is rare and indicates serious issues beyond routine price compliance. Additionally, Nasdaq has explicitly denied the standard compliance period typically granted for minimum bid failures, instead accelerating toward delisting proceedings.

While the company has appealed and received a temporary stay of delisting, the combination of multiple compliance failures and the discretionary ruling creates a significantly challenging path to maintain listing status. The press release notably lacks any concrete remediation strategy, only stating they will "evaluate available options." For context, when Nasdaq denies a compliance period and invokes discretionary authority, the statistical probability of successfully maintaining listing historically diminishes substantially.

Corporate Finance Analyst

Delisting threat creates significant capital constraints and shareholder value challenges without clear remediation path.

The multiple delisting notifications represent a critical financial challenge for Bon Natural Life. The extremely low share price (below $0.10) indicates severe market concerns and dramatically constrains the company's financial flexibility. If delisting occurs, the consequences typically include:

• Significantly reduced liquidity as institutional investors often have mandates preventing OTC stock investments
• Diminished access to capital markets for future fundraising
• Increased borrowing costs as creditors perceive higher risk
• Potential covenant violations if existing debt agreements include listing requirements

The timing is particularly challenging following their March 2025 offering, which Nasdaq cited in their public interest concerns. While delisting doesn't directly impact operational capabilities, it creates substantial friction in capital allocation and strategic flexibility.

The company's acknowledgment that there are "no assurances" they can regain compliance suggests internal recognition of the significant hurdles ahead. The lack of announced reverse split plans or other specific compliance strategies in this communication further indicates the complexity of their situation. These combined factors create material uncertainty for existing shareholders.

XI’AN, China, May 02, 2025 (GLOBE NEWSWIRE) -- Bon Natural Life Limited (Nasdaq: BON) (“BON” or the “Company”), one of the leading bio-ingredient solutions providers in the natural, health and personal care industries, announced today that on April 29, 2025, the Company received a letter (the “Notification Letter”) from the Listing Qualifications Staff (the “Staff”) of The Nasdaq Stock Market, LLC (“Nasdaq”), notifying the Company that it was not in compliance with Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Requirement”), as the Company's closing bid price for its Class A ordinary shares, par value US$0.001 per share was below $1.00 per share for the prior thirty (30) consecutive business days, which matter serves as a basis for delisting the Company’s securities from Nasdaq. Additionally, the Company’s securities had a closing bid of $0.10 or less for the last ten consecutive trading days, and accordingly, is subject to the provisions under Listing Rule 5810(c)(3)(A)(iii). This serves as an additional basis for delisting, and as such, the Company is not eligible for a compliance period. 

On May 1, 2025, the Company received an additional Notification Letter notifying the Company that the Staff has determined to delist the Company’s securities pursuant to their discretionary authority under Listing Rule 5101. The Staff’s determination was based on public interest concerns in relation to the Company’s March 2025 best efforts offering.

The Company has filed a notice of appeal and requested a hearing before a Nasdaq Listing Qualifications Panel to review the Staff’s determination. The appeal will stay delisting of the Company’s securities pending the Panel’s decision.

The Company will evaluate available options to regain compliance with the aforementioned Listing Rules. However, there are no assurances that the Company will be able to regain or maintain compliance or that any such appeal to the Panel will be successful, as applicable.

About Bon Natural Life Limited

BON is a Cayman Islands company engaged in the business of natural, health, and personal care industries. For more information, please visit http://www.bnlus.com.

Forward-Looking Statements

Certain statements in this announcement are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results. These forward-looking statements are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, activities of regulators and future regulations and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Therefore, you should not rely on any of these forward-looking statements. These risks and uncertainties include, among others: the completion of the offering, the satisfaction of customary closing conditions related to the offering, the intended use of proceeds from the offering, BON’s limited operating history and historical losses; BON’s ability to raise additional funding; competition from third parties that are developing or have products for similar uses; BON’s ability to obtain, maintain and protect its intellectual property; and BON’s expectations regarding its growth, strategy, progress towards its goals. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the U.S. Securities and Exchange Commission.

Investor Relations Contact:

Cindy Liu | IR

Email: bonnatural@appchem.cn

FAQ

Why is BON stock being delisted from Nasdaq?

BON is facing delisting due to two main reasons: trading below $1.00 for 30 consecutive days and below $0.10 for 10 consecutive days, plus public interest concerns regarding their March 2025 offering.

What happens to BON shares if the company gets delisted?

If BON's appeal is unsuccessful and the company is delisted from Nasdaq, its shares would likely trade on the over-the-counter (OTC) market, which typically has less liquidity and stricter trading restrictions.

Can BON stock avoid Nasdaq delisting?

BON has filed an appeal and requested a hearing with the Nasdaq Listing Qualifications Panel. While this temporarily stays the delisting, there are no assurances the company will successfully maintain its listing.

What is the minimum bid price requirement for Nasdaq?

Nasdaq requires listed companies to maintain a minimum bid price of $1.00 per share. BON violated this requirement by trading below $1.00 for 30 consecutive business days.