Earlyworks Co., Ltd. Announces Receipt of Nasdaq Delisting Determination and Plan to Request a Hearing before the Nasdaq Hearings Panel
Earlyworks (Nasdaq: ELWS), a Japanese blockchain technology company, has received a delisting notice from Nasdaq on May 2, 2025, due to failing to maintain the minimum required market value of $35 million for listed securities over 30 consecutive trading days. The company did not regain compliance during the 180-day grace period ending April 28, 2025.
To avoid delisting, Earlyworks plans to request a hearing before the Nasdaq Hearings Panel before May 9, 2025, which will temporarily stay the trading suspension and delisting process. Alternatively, the company could regain compliance by meeting the equity standard of $2.5 million in shareholders' equity. Earlyworks is exploring strategic options, including third-party allotments and potential investor discussions, while developing partnerships with Japanese companies in transportation, retail, and finance sectors for GLS-powered services.
Earlyworks (Nasdaq: ELWS), un'azienda giapponese specializzata in tecnologia blockchain, ha ricevuto un avviso di esclusione da Nasdaq il 2 maggio 2025, a causa del mancato mantenimento del valore minimo di mercato richiesto di 35 milioni di dollari per titoli quotati per 30 giorni di contrattazione consecutivi. La società non è riuscita a rientrare nei parametri durante il periodo di grazia di 180 giorni terminato il 28 aprile 2025.
Per evitare l'esclusione, Earlyworks intende richiedere un'audizione davanti al Nasdaq Hearings Panel entro il 9 maggio 2025, che sospenderà temporaneamente la sospensione delle negoziazioni e il processo di esclusione. In alternativa, la società potrebbe tornare conforme raggiungendo lo standard patrimoniale di 2,5 milioni di dollari in patrimonio netto degli azionisti. Earlyworks sta valutando opzioni strategiche, inclusi aumenti di capitale tramite terzi e potenziali colloqui con investitori, mentre sviluppa collaborazioni con aziende giapponesi nei settori dei trasporti, della vendita al dettaglio e della finanza per servizi basati su GLS.
Earlyworks (Nasdaq: ELWS), una empresa japonesa de tecnología blockchain, recibió un aviso de exclusión por parte de Nasdaq el 2 de mayo de 2025, debido a no mantener el valor mínimo requerido en el mercado de 35 millones de dólares para valores cotizados durante 30 días hábiles consecutivos. La compañía no logró cumplir con los requisitos durante el período de gracia de 180 días que terminó el 28 de abril de 2025.
Para evitar la exclusión, Earlyworks planea solicitar una audiencia ante el Nasdaq Hearings Panel antes del 9 de mayo de 2025, lo que suspenderá temporalmente la suspensión de la negociación y el proceso de exclusión. Alternativamente, la empresa podría volver a cumplir alcanzando el estándar patrimonial de 2.5 millones de dólares en capital contable. Earlyworks está explorando opciones estratégicas, incluyendo asignaciones a terceros y posibles conversaciones con inversores, mientras desarrolla asociaciones con compañías japonesas en los sectores de transporte, comercio minorista y finanzas para servicios impulsados por GLS.
Earlyworks (나스닥: ELWS)는 일본의 블록체인 기술 회사로, 2025년 5월 2일 나스닥으로부터 상장폐지 통보를 받았습니다. 이는 상장 증권의 최소 요구 시장 가치인 3,500만 달러를 30거래일 연속 유지하지 못했기 때문입니다. 회사는 2025년 4월 28일로 종료된 180일간의 유예 기간 내에 규정을 준수하지 못했습니다.
상장폐지를 피하기 위해 Earlyworks는 2025년 5월 9일 이전에 나스닥 청문회 패널에 심리를 요청할 계획이며, 이는 거래 정지와 상장폐지 절차를 일시적으로 중단시킬 것입니다. 또는 회사는 250만 달러의 주주 자본 기준을 충족하여 규정 준수를 회복할 수 있습니다. Earlyworks는 제3자 배정 및 잠재적 투자자와의 논의를 포함한 전략적 옵션을 모색하는 한편, GLS 기반 서비스 제공을 위해 일본의 운송, 소매 및 금융 부문 기업들과 파트너십을 개발하고 있습니다.
Earlyworks (Nasdaq : ELWS), une entreprise japonaise spécialisée dans la technologie blockchain, a reçu un avis de radiation de la part du Nasdaq le 2 mai 2025, en raison du non-respect de la valeur minimale de marché requise de 35 millions de dollars pour les titres cotés pendant 30 jours de bourse consécutifs. La société n’a pas retrouvé la conformité durant la période de grâce de 180 jours se terminant le 28 avril 2025.
Pour éviter la radiation, Earlyworks prévoit de demander une audience devant le Nasdaq Hearings Panel avant le 9 mai 2025, ce qui suspendra temporairement la suspension des échanges et le processus de radiation. Sinon, l’entreprise pourrait retrouver la conformité en atteignant la norme de fonds propres de 2,5 millions de dollars. Earlyworks explore des options stratégiques, y compris des attributions à des tiers et d’éventuelles discussions avec des investisseurs, tout en développant des partenariats avec des entreprises japonaises dans les secteurs des transports, du commerce de détail et de la finance pour des services propulsés par GLS.
Earlyworks (Nasdaq: ELWS), ein japanisches Blockchain-Technologieunternehmen, hat am 2. Mai 2025 eine Delisting-Mitteilung von Nasdaq erhalten, da es den erforderlichen Mindestmarktwert von 35 Millionen US-Dollar für gelistete Wertpapiere über 30 aufeinanderfolgende Handelstage nicht gehalten hat. Das Unternehmen konnte während der 180-tägigen Schonfrist, die am 28. April 2025 endete, keine Compliance erreichen.
Um ein Delisting zu vermeiden, plant Earlyworks, bis zum 9. Mai 2025 eine Anhörung vor dem Nasdaq Hearings Panel zu beantragen, was die Handelssperre und den Delisting-Prozess vorübergehend aussetzen würde. Alternativ könnte das Unternehmen die Compliance wiederherstellen, indem es den Eigenkapitalstandard von 2,5 Millionen US-Dollar an Aktionärsvermögen erfüllt. Earlyworks prüft strategische Optionen, einschließlich Drittzuteilungen und potenzieller Investorgespräche, während es Partnerschaften mit japanischen Unternehmen in den Bereichen Transport, Einzelhandel und Finanzen für GLS-basierte Dienstleistungen entwickelt.
- Company has the opportunity to appeal the delisting decision through a Nasdaq hearing
- Alternative compliance path available through meeting $2.5M shareholders' equity requirement
- Ongoing discussions with potential investors for strategic financing
- Active business development with leading Japanese companies across multiple sectors
- Failed to maintain minimum $35M market value requirement for Nasdaq listing
- Did not regain compliance during 180-day grace period
- Risk of immediate delisting if hearing request not filed by May 9, 2025
- Potential trading suspension of ADSs on May 13, 2025, if appeal not filed
Insights
Nasdaq's delisting determination threatens Earlyworks' market status; company pursuing appeal and equity standard compliance to avoid removal.
Earlyworks has received a delisting determination from Nasdaq after failing to maintain the required minimum market value of $35 million for listed securities over 30 consecutive trading days. This non-compliance persisted despite a 180-day grace period that concluded on April 28, 2025.
The delisting process follows a clear timeline: without an appeal by May 9, 2025, trading of Earlyworks' American Depositary Shares would be suspended on May 13, 2025, followed by formal delisting. The company has indicated it will request a hearing before the Nasdaq Hearings Panel, which temporarily halts the delisting process pending the Panel's decision.
Earlyworks is pursuing a dual strategy to maintain its listing. First, it's seeking the hearing to gain additional time. Second, it's attempting to meet an alternative compliance pathway through Nasdaq Listing Rule 5550(b)(1), which requires shareholders' equity of at least $2.5 million. To achieve this, the company reports it's evaluating strategic options including third-party allotments and potential capital/business alliances.
On the business development front, Earlyworks states it's in discussions with Japanese companies across transportation, retail, and finance sectors to develop services using its Grid Ledger System (GLS). However, the announcement contains no specific financing commitments, partnership agreements, or concrete timelines that would guarantee compliance with either Nasdaq listing standard.
A potential delisting would significantly impact the company's market accessibility, typically resulting in reduced trading liquidity, less institutional investor participation, and diminished market visibility if the shares move to over-the-counter markets.
TOKYO, May 07, 2025 (GLOBE NEWSWIRE) -- Earlyworks Co., Ltd. (Nasdaq: ELWS) (the “Company” or “Earlyworks”), a Japanese company operating its proprietary private blockchain technology, Grid Ledger System (“GLS”), today announced that it received a staff determination letter (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) dated May 2, 2025. The Notice stated that Nasdaq has determined to delist the Company’s securities from the Nasdaq Capital Market.
The determination was made in accordance with Nasdaq Listing Rule 5550(b)(2), as the market value of the Company’s listed securities had fallen below the minimum requirement of
Unless the Company requests an appeal of the determination by May 9, 2025, trading of its American Depositary Shares (ADSs) will be suspended at the opening of business on May 13, 2025 (U.S. Eastern Time), and Nasdaq will file a Form 25-NSE with the U.S. Securities and Exchange Commission (SEC), removing the Company’s securities from listing and registration on Nasdaq.
In response to the Notice, the Company intends to timely request a hearing before the Nasdaq Hearings Panel (the “Panel”). This request will stay the suspension of trading and the delisting process pending the Panel’s decision.
Alternatively, if the Company does not satisfy Nasdaq Listing Rule 5550(b)(2) and instead satisfies the equity standard as set forth in Nasdaq Listing Rule 5550(b)(1), which requires the shareholders’ equity of at least US
The Company remains committed to enhancing shareholder value and achieving sustainable growth. As part of this strategy, it is currently engaged in discussions with several leading Japanese companies across sectors such as transportation, retail, and finance, aiming to co-develop innovative services powered by GLS. These initiatives are expected to accelerate over the coming quarters and contribute to the Company’s business growth.
In parallel, the Company is also making progress in securing strategic financing to reinforce its capital structure and enable sustainable scaling. The Company believes that these efforts will contribute to enhancing shareholder value in both the short and long term.
The Company will provide material updates to shareholders and stakeholders as they become available.
About Earlyworks Co., Ltd.
Earlyworks Co., Ltd. is a Japanese company operating its proprietary private blockchain technology, GLS, to leverage blockchain technology in various applications in a wide range of industries. GLS is a hybrid blockchain that combines the technical advantages of blockchain and database technology. GLS features high-speed processing, which can reach 0.016 seconds per transaction, tamper-resistance, security, zero server downtime, and versatile applications. The applicability of GLS is verified in multiple domains, including real estate, advertising, telecommunications, metaverse, and financial services. The Company’s mission is to keep updating GLS and make it an infrastructure in the coming Web3/metaverse-like data society. For more information, please visit the Company’s website: https://ir.e-arly.works/.
For more information, please visit the Company’s website: https://ir.e-arly.works/.
For inquiries about this release, please contact:
Earlyworks Co., Ltd.
Contact E-MAIL: ew-ir@e-arly.works
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may,” or other similar expressions. The Company undertakes no obligation to update or revise publicly any 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 other filings with the SEC.
FAQ
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