Paranovus Entertainment Technology Limited Announces Receipt of a Bid Deficiency Notice from Nasdaq

Rhea-AI Summary

Paranovus Entertainment Technology (NASDAQ:PAVS) received a bid deficiency notice from Nasdaq on July 11, 2025, as its Class A ordinary shares traded below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).

The company has until January 7, 2026 to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. If unsuccessful, PAVS may be eligible for an additional 180-day compliance period, potentially requiring a reverse stock split to meet requirements.

Positive

• No immediate effect on NASDAQ listing
• Initial 180-day compliance period provided until January 7, 2026
• Possibility of additional 180-day extension if eligible

Negative

• Stock price below $1.00 for 30 consecutive business days
• Risk of potential delisting if compliance is not achieved
• May require dilutive reverse stock split to maintain listing

NEW YORK, July 15, 2025 /PRNewswire/ -- Paranovus Entertainment Technology Limited ("PAVS" or the "Company"), (NASDAQ: PAVS) announced today that on July 11, 2025, the Company received a notification letter from the Nasdaq Listing Qualifications Staff of The NASDAQ Stock Market LLC ("Nasdaq"), notifying the Company that the minimum bid price per share for its Class A ordinary shares has been below $1.00 for a period of 30 consecutive business days and the Company therefore no longer meets the minimum bid price requirements set forth in Nasdaq Listing Rule 5550(a)(2).

The notification received has no immediate effect on the listing of the Company's Class A ordinary shares on Nasdaq. Under the Nasdaq Listing Rules, the Company has until January 7, 2026 to regain compliance. If at any time during such 180-day period the closing bid price of the Company's Class A ordinary shares is at least $1 for a minimum of 10 consecutive business days, Nasdaq will provide the Company written confirmation of compliance.

If the Company does not regain compliance during such 180-day period, the Company may be eligible for an additional 180 calendar days, provided that the Company meets the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq except for Nasdaq Listing Rule 5550(a)(2), and provide a written notice of its intention to cure this deficiency during the second compliance period, by effecting a reverse stock split, if necessary. 

About Paranovus Entertainment Technology Limited

Paranovus Entertainment Technology Ltd. focuses on the development of AI-powered entertainment products, including AI-driven games and applications, as well as TikTok-related e-commerce solutions through its subsidiary. The Company is committed to delivering immersive and engaging experiences through innovative AI and digital commerce platforms.

In March 2025, the Company completed the acquisition of the controlling equity interests of Bomie Wookoo Inc., a New York company that offers e-commerce solutions. As part of its strategic transformation, Paranovus has exited its legacy businesses, including the e-commerce, internet information, and advertising businesses in September 2023 and ceased its automobile sales business in July 2024.

For more information on our latest innovations and developments, visit https://www.pavs.ai/.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following:  the Company's goals and strategies; the Company's future business development; the Company's future acquisition opportunities; the Company's ability to identify any acquisition opportunities that fit with our business strategies; the Company's ability to consummate an attractive acquisition and realize the benefits of such transaction; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic, the COVID-19 outbreak and its impact on our operations and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission.  For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

 

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SOURCE Paranovus Entertainment Technology Ltd.

FAQ

Why did PAVS receive a Nasdaq deficiency notice?

PAVS received the notice because its Class A ordinary shares traded below $1.00 for 30 consecutive business days, violating Nasdaq's minimum bid price requirement.

What is the deadline for PAVS to regain Nasdaq compliance?

PAVS has until January 7, 2026 to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days.

Will PAVS be immediately delisted from Nasdaq?

No, the notification has no immediate effect on PAVS's Nasdaq listing. The company has a 180-day period to regain compliance.

What options does PAVS have to maintain its Nasdaq listing?

PAVS can either naturally achieve a $1.00+ share price, or if eligible, receive an additional 180-day period and potentially implement a reverse stock split to meet requirements.

What happens if PAVS stock price doesn't reach $1.00 by January 2026?

If eligible, PAVS may receive an additional 180-day compliance period, but must meet other listing requirements and may need to implement a reverse stock split.