DIH Holding US, Inc. Receives Nasdaq Staff Determination Letter

Rhea-AI Summary

DIH Holding US (NASDAQ:DHAI) has received a delisting notice from Nasdaq on September 2, 2025, after failing to meet the minimum market value requirement of $50 million for continued listing on the Nasdaq Global Market.

The company was initially notified of this deficiency on March 5, 2025, and was given a 180-day compliance period until September 1, 2025. DIH plans to request a hearing before the Nasdaq Hearing Panel, which will temporarily stay any delisting action. The Panel has the authority to grant DIH an extension of up to 180 days for market value compliance.

Positive

• Company can request hearing to appeal delisting decision
• Potential extension period of up to 180 days if appeal is successful

Negative

• Failed to maintain minimum $50 million market value requirement
• Risk of delisting from Nasdaq Global Market
• No guarantee of successful appeal or ability to regain compliance

Insights

Financial Regulatory Specialist

DIH faces Nasdaq delisting for failing to maintain $50M market value requirement; appeal hearing planned but outcome uncertain.

DIH Holding US has received a delisting notice from Nasdaq after failing to regain compliance with the $50,000,000 market value of listed securities (MVLS) requirement. This follows a 180-day compliance period that began with the initial March 5 notification and ended September 1 without resolution.

The company plans to request a hearing before the Nasdaq Hearing Panel, which will temporarily stay any delisting action. DIH will seek an extended stay while presenting its compliance plan. The Panel has authority to grant extensions of up to 180 days for MVLS compliance and 360 days for filing delinquencies.

This delisting threat represents a significant regulatory challenge for DIH. Nasdaq Global Market listing provides important benefits including market visibility, liquidity, and access to institutional investors. Loss of this listing could force the company to move to less prestigious exchanges like the Nasdaq Capital Market (with lower thresholds), OTCQX, or Pink Sheets markets - typically resulting in reduced trading volume and institutional investment.

The fact that DIH couldn't regain compliance during the initial period suggests persistent valuation challenges. While the appeal offers a temporary reprieve, the company must present a convincing remediation plan to secure additional time. Even with an extension, DIH must demonstrate meaningful progress toward the $50M threshold, which may require significant operational improvements or strategic transactions to boost investor confidence.

DIH Receives Notice for Continued Deficiency and Delist Letter from the Nasdaq Stock Market

DIH Intends to Request Hearing to Appeal in a Timely Manner

NORWELL, Mass., Sept. 05, 2025 (GLOBE NEWSWIRE) -- DIH Holding US, Inc. (“DIH” or the “Company”) (NASDAQ:DHAI) received a notice on September 2, 2025, from the Listing Qualifications Staff (“Staff”) of the Nasdaq Stock Market LLC (“Nasdaq”) that it had failed to regain compliance for continued listing requirements of the Nasdaq Global Market. As previously disclosed, on March 5, 2025, the Company received written notice (the “MVLS Notice”) from the Staff of Nasdaq which notified the Company that, for the previous 30 consecutive business days prior to the date of the MVLS Notice, the Company’s market value of listed securities (“MVLS”) closed below the $50,000,000 MVLS threshold required for continued listing on the Nasdaq Global Market under Nasdaq Listing Rule 5450(b)(2)(A) (the “MVLS Rule”). In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company was provided a compliance period of 180 calendar days in which to regain compliance with the MVLS continued listing requirement, or until September 1, 2025 (the “Compliance Date”). The Company did not regain compliance with the MVLS Rule by September 1, 2025 and, accordingly, by letter dated September 2, 2025, the Staff notified the Company that its securities were subject to delisting from Nasdaq unless the Company timely requests a hearing before the Nasdaq Hearing Panel (the “Panel”).

The Company plans to timely request a hearing before the Panel which will stay any further action for an initial period of 15 days. In connection with the hearing request, the Company plans to also request for an extended stay of any further action pending the hearing. At the hearing, the Company will present its plan to evidence compliance with all applicable listing criteria, and request an extension of time to do so. The Panel has the authority to grant the Company an extension of up to 180 days determination for the MVLS and 360 days from the initial filing delinquency. The Company is considering all options available to it to regain compliance; however, there can be no assurance that the Panel will grant the Company’s request for continued listing or that the Company will be able to evidence compliance within the period of time that may be granted by the Panel.

About DIH Holding US, Inc.

DIH stands for the vision to “Deliver Inspiration & Health” to improve the daily lives of millions of people with disabilities and functional impairments through providing devices and solutions enabling intensive rehabilitation. DIH is a global provider of advanced robotic devices used in physical rehabilitation, which incorporate visual stimulation in an interactive manner to enable clinical research and intensive functional rehabilitation and training in patients with walking impairments, reduced balance and/or impaired arm and hand functions. Built through the mergers of global-leading niche technology providers, DIH is a transformative rehabilitation solutions provider and consolidator of a largely fragmented and manual-labor-driven industry.

Caution Regarding Forward-Looking Statements

This press release contains certain statements which are not historical facts, which are forward-looking statements within the meaning of the federal securities laws, for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These forward-looking statements include certain statements made with respect to the business combination, the services offered by DIH and the markets in which it operates, and DIH’s projected future results. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions provided for illustrative purposes only, and projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that could cause the actual results to differ materially from the expected results. These risks and uncertainties include, but are not limited to: general economic, political and business conditions; the ability of DIH to achieve its projected revenue, the failure of DIH realize the anticipated benefits of the recently-completed business combination and access to sources of additional debt or equity capital if needed. While DIH may elect to update these forward-looking statements at some point in the future, DIH specifically disclaims any obligation to do so.

Investor Contact

Louisa Smith
Investor.relations@dih.com

FAQ

Why is DIH Holding US (DHAI) facing delisting from Nasdaq?

DIH is facing delisting because its market value of listed securities remained below the required $50 million threshold for over 30 consecutive business days and failed to regain compliance by September 1, 2025.

What options does DIH Holding have to avoid Nasdaq delisting?

DIH plans to request a hearing before the Nasdaq Hearing Panel and can receive up to 180 days extension to regain compliance if the appeal is successful.

When did DIH receive the initial Nasdaq compliance notice?

DIH received the initial Market Value of Listed Securities (MVLS) notice from Nasdaq on March 5, 2025, giving them 180 days to regain compliance.

What happens to DIH stock while waiting for the Nasdaq hearing?

The hearing request will stay any delisting action for an initial 15-day period, and DIH can request an extended stay pending the hearing outcome.

What is the minimum market value requirement for Nasdaq Global Market listing?

Companies must maintain a minimum market value of listed securities of $50 million to remain listed on the Nasdaq Global Market under Rule 5450(b)(2)(A).