Fitell Corporation Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Requirement
Rhea-AI Summary
Fitell (FTEL), an Australian online retailer of gym and fitness equipment, has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement. The company's shares have traded below $1.00 for 30 consecutive business days.
Fitell has been granted a 180-day compliance period until September 29, 2025, to meet the minimum closing bid price requirement. The company can regain compliance if its shares maintain a closing bid price of at least $1.00 for a minimum of ten consecutive business days. If unsuccessful, Fitell may be eligible for an additional 180-day extension, provided it meets other listing requirements.
The notification has no immediate impact on Fitell's Nasdaq listing, trading activities, or business operations. The company is considering implementing a reverse stock split as a potential solution to regain compliance.
Positive
- 180-day compliance period granted with possibility of additional 180-day extension
- No immediate impact on Nasdaq listing or trading activities
- Business operations remain unaffected by the notification
Negative
- Stock price has fallen below $1.00 for 30 consecutive business days
- Risk of potential delisting from Nasdaq if compliance is not achieved
- Company may need to implement reverse stock split, which typically indicates financial distress
News Market Reaction
On the day this news was published, FTEL declined 3.78%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
TAREN POINT, Australia, April 03, 2025 (GLOBE NEWSWIRE) -- Fitell Corporation (Nasdaq: FTEL) (the “Company”), an online retailer of gym and fitness equipment in Australia, today announced that on April 2, 2025, it has received a letter (the "Notification Letter") from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”), notifying the Company that for the last 30 consecutive business days the closing bid price of the Company’s ordinary shares was below
The Notification Letter has no immediate impact on the listing or trading of the Company’s ordinary shares on The Nasdaq Capital Market and does not affect the Company’s business operations, its reporting obligations with the Securities and Exchange Commission (the “SEC”), or contractual obligations.
In accordance with Nasdaq Listing Rules, the Company was provided a compliance period of 180 calendar days from the date of the Notification Letter, or until September 29, 2025, to regain compliance with the minimum closing bid price requirement. If at any time during this compliance period, the closing bid price of the Company’s ordinary shares is at least
The Company's business operations are not affected by the receipt of the Notification Letter. The Company intends to monitor the closing bid price of its ordinary shares and may consider implementing a reverse stock split to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.
About Fitell Corporation
Fitell Corporation, through GD Wellness Pty Ltd (“GD”), its wholly owned subsidiary, is an online retailer of gym and fitness equipment both under its proprietary brands and other brand names in Australia. The company’s mission is to build an ecosystem with a whole fitness and wellness experience powered by technology to our customers. GD has served over 100,000 customers with large portions of sales from repeat customers over the years. The Company’s brand portfolio can be categorized into three proprietary brands under its Gym Direct brand: Muscle Motion, Rapid Motion, and FleetX, in over 2,000 stock-keeping units (SKUs). For additional information, please visit the Company’s website at www.fitellcorp.com.
Forward-Looking Statements
This press release contains “forward-looking statements”. Forward-looking statements reflect our current view about future events and include, but are not limited to, statements regarding the exercise of the warrants prior to their expiration and the intended use of proceeds from the offering. These forward-looking statements involve known and unknown risks and uncertainties, including market and other conditions, 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 identify these forward-looking statements by words or phrases such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” or 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.
For more information, please contact:
Chief Financial Officer
Jamarson Kong
jamarson@gymdirect.com.au
Investor Relations
FAQ
What is the deadline for Fitell (FTEL) to regain Nasdaq compliance?
How can Fitell (FTEL) regain Nasdaq compliance?
What happens if Fitell (FTEL) fails to meet the September 2025 deadline?
What actions is Fitell (FTEL) considering to address the Nasdaq compliance issue?
