GIBO Holdings Limited Announces Receipt of Nasdaq Delisting Notice Subject to Hearing Request

Rhea-AI Summary

GIBO Holdings (NASDAQ:GIBO), an AIGC animation streaming platform, has received a delisting notice from Nasdaq due to non-compliance with listing requirements. The company's stock has traded below $0.10 for ten consecutive trading days and below $1.00 for 30 consecutive business days, violating both the Low Priced Stocks Rule and minimum bid price requirement.

GIBO has until August 11, 2025 to request a hearing before the Nasdaq Hearings Panel to appeal the delisting determination. Without an appeal, trading will be suspended on August 13, 2025. The company plans to appeal and is considering options including a potential reverse stock split to regain compliance.

Positive

• Company intends to appeal the delisting determination
• Management actively considering compliance options including reverse stock split
• Appeal would temporarily stay the trading suspension

Negative

• Stock price fell below critical $0.10 threshold for 10 consecutive trading days
• Non-compliance with multiple Nasdaq listing requirements
• Immediate risk of delisting from Nasdaq Global Market
• Stock trading below $1.00 for 30 consecutive business days

Insights

Securities Compliance Expert

GIBO faces imminent Nasdaq delisting due to critically low share price, threatening liquidity and institutional access despite appeal opportunity.

GIBO Holdings has received a critical delisting notice from Nasdaq due to severe non-compliance with listing requirements. The company's shares have traded at $0.10 or less for ten consecutive trading days, triggering the Low Priced Stocks Rule (5810(c)(3)(A)(iii)). Additionally, GIBO has failed to maintain the minimum $1 per share requirement (Rule 5450(a)(1)) for 30 consecutive business days.

The severity of this situation cannot be overstated. While companies typically receive 180 days to regain compliance with the $1 threshold, GIBO's situation is more dire due to the triggered Low Priced Stocks Rule. Nasdaq has determined to delist GIBO's securities from the Global Market unless the company successfully appeals by August 11, 2025. Without an appeal, trading suspension would occur on August 13, followed by formal delisting.

GIBO has indicated it will appeal before the deadline, which temporarily stays the suspension pending the Panel's decision. The company mentions considering options including a reverse stock split, which would artificially increase the share price by reducing the number of outstanding shares. However, reverse splits often signal financial distress and frequently lead to continued devaluation post-split.

Delisting would force GIBO to trade on less prestigious over-the-counter markets, significantly reducing liquidity, institutional investor access, and analyst coverage. This development represents a fundamental threat to shareholder value and indicates severe underlying financial challenges at the company.

HONG KONG, Aug. 6, 2025 /PRNewswire/ -- GIBO Holdings Limited ("GIBO" or the "Company"), a unique and integrated AIGC animation streaming platform, today announced it received a letter from The Nasdaq Stock Market LLC ("Nasdaq") on August 4, 2025, notifying that the Company is not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii) (the "Low Priced Stocks Rule"), as the Company's securities had a closing bid price of $0.10 or less for the last ten consecutive trading days. The letter indicated that, as a result, the Nasdaq staff determined to delist the Company's securities from The Nasdaq Global Market (the "Delisting Determination").

The letter also indicated that the bid price of the Company's Class A ordinary shares had closed at less than $1 per share over the previous 30 consecutive business days, and as a result, the Company is not in compliance with Listing Rule 5450(a)(1) (the "Rule"). Normally, a company is provided 180 calendar days to regain compliance with the Rule in accordance with Listing Rule 5810(c)(3)(A). However, the Nasdaq determined that the Company's securities also had a closing bid price of $0.10 or less for the last ten consecutive trading days. Accordingly, the Company became subject to the provisions contemplated under the Low Priced Stocks Rule. As a result, the Nasdaq determined to delist the Company's securities from The Nasdaq Global Market. The Company was provided until August 11, 2025 to request an appeal of the Delisting Determination to the Hearings Panel (the "Panel"). If the Company fails to request an appeal by August 11, 2025, trading of the Company's securities will be suspended at the opening of business on August 13, 2025, and a Form 25-NSE will be filed with the SEC, which will remove the Company's securities from listing and registration on The Nasdaq Stock Market.

The Company intends to request such hearing to appeal the Delisting Determination before August 11, 2025, which will stay the suspension of the Company's securities and the filing of the Form 25-NSE pending the Panel's decision. 

The Company is considering all potential options available to it to regain compliance with the aforementioned rules, including seeking shareholders' approval for a reverse stock split.

About GIBO Holdings Limited

GIBO Holdings Limited is a unique and integrated AIGC animation streaming platform with extensive functionalities provided to both viewers and creators that serves a broad community of young people across Asia to create, publish, share and enjoy AI-generated animation video content. With approximately 86 million registered users and advanced AI-powered tools, GIBO seeks to revolutionize content creation and consumption through AI.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements also include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company's ability to scale and grow its business, the Company's advantages and expected growth, the Company's ability to source and retain talent, and the Company's cash position, as applicable. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company's management and are not predictions of actual performance. These statements involve risks, uncertainties and other factors that may cause the Company's actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. The forward-looking statements in this press release represent the views of the Company as of the date of this press release. Subsequent events and developments may cause those views to change. Except as may be required by law, the Company does not undertake any duty to update these forward-looking statements.

Contact Information

Investor Relations:
Bill Zima
ICR, Inc.
William.zima@icrinc.com 

Media Relations:
Edmond Lococo
ICR, Inc.
Edmond.Lococo@icrinc.com

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SOURCE GIBO Holdings Ltd.

FAQ

Why is GIBO Holdings (NASDAQ:GIBO) facing delisting from Nasdaq?

GIBO is facing delisting because its stock price traded below $0.10 for ten consecutive days and below $1.00 for 30 consecutive business days, violating Nasdaq's listing requirements.

What happens if GIBO Holdings doesn't appeal the Nasdaq delisting notice by August 11, 2025?

If GIBO doesn't appeal by August 11, 2025, trading will be suspended on August 13, 2025, and a Form 25-NSE will be filed to remove the company's securities from Nasdaq.

What options is GIBO considering to maintain its Nasdaq listing?

GIBO is considering various options including seeking shareholders' approval for a reverse stock split and plans to appeal the delisting determination before the Nasdaq Hearings Panel.

What is the immediate impact of GIBO's Nasdaq delisting notice on trading?

There is no immediate impact on trading as GIBO plans to appeal, which will stay the suspension of trading pending the Hearings Panel's decision.

What are the specific Nasdaq rules GIBO violated in August 2025?

GIBO violated two rules: Rule 5810(c)(3)(A)(iii) (Low Priced Stocks Rule) by trading below $0.10, and Rule 5450(a)(1) by trading below $1.00 per share.