K Wave Media Receives Nasdaq MVLS Deficiency Notice, Aims to Regain Compliance by June 2026
Rhea-AI Summary
K Wave Media (KWM) said it received a Nasdaq written notice dated January 22, 2025 that it is not in compliance with the Nasdaq minimum Market Value of Listed Securities (MVLS) requirement for continued listing on The Nasdaq Global Market. The notice provides a 180-calendar-day compliance period during which the company's MVLS must close at or above $50 million for at least 10 consecutive business days to regain compliance. The notice does not have an immediate effect on listing or trading. The company said it will consider available options to restore compliance and remains focused on its long-term business strategy; K Wave Media went public in 2025 and operates in entertainment and Bitcoin treasury management.
Positive
- Nasdaq notice has no immediate effect on listing or trading
- Company has a 180-calendar-day compliance period to regain MVLS
- Company remains committed to executing long-term strategy post-listing
Negative
- Received Nasdaq notice for MVLS noncompliance under Global Market rules
- Must reach $50 million MVLS for 10 consecutive business days to comply
- Failure to regain compliance within 180 days could lead to listing consequences
News Market Reaction
On the day this news was published, KWM declined 20.50%, reflecting a significant negative market reaction. Argus tracked a peak move of +7.0% during that session. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $14M from the company's valuation, bringing the market cap to $56M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Pre-news, KWM was flat on the day while one tracked peer in momentum (CPOP) moved down ~4.64%. Broader entertainment peers showed mixed single-day changes, suggesting this Nasdaq MVLS notice is primarily stock-specific rather than part of a coordinated sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 12 | Box office milestone | Positive | +1.7% | Korean film hit over 1 million viewers and led box office rankings. |
| Jan 09 | Nasdaq bid deficiency | Negative | +1.7% | Nasdaq notice for closing bid price below $1 minimum listing requirement. |
| Dec 22 | Strategic acquisition | Positive | -4.1% | Agreement to acquire 42.25% of Hansol Inticube to expand AI and ICT reach. |
| Dec 18 | Corporate update | Positive | -2.0% | Corporate update on SEC clearance, acquisition plans, and restructuring progress. |
| Nov 04 | Management change | Neutral | -8.9% | Appointment of new CFO with capital markets and compliance experience. |
Recent regulatory and strategic updates often saw muted or negative price reactions, even when news skewed positive.
Over the last few months, K Wave Media has combined strategic growth with recurring listing compliance issues. Positive content and acquisition news, such as the box office success of “Once We Were Us” and the planned 42.25% Hansol Inticube stake, saw mixed reactions, with some selloffs after ambitious growth updates. Regulatory items, including prior Nasdaq bid price deficiency notices, also weighed on sentiment. Today’s MVLS deficiency notice extends this pattern of listing-related pressure alongside a long-term growth narrative in entertainment and digital assets.
Market Pulse Summary
The stock dropped -20.5% in the session following this news. A negative reaction despite the company retaining its current listing status would fit prior instances where regulatory or financing headlines coincided with downside moves. The MVLS deficiency adds to the earlier minimum bid price notice, against a backdrop of shares already about 89.62% below the 52-week high and below the 200-day MA of $2.33. Such conditions can amplify concerns around long-term compliance, funding flexibility, and execution on the stated growth strategy.
Key Terms
market value of listed securities regulatory
nasdaq global market regulatory
bitcoin treasury financial
digital asset treasury management financial
AI-generated analysis. Not financial advice.
NEW YORK and SEOUL, South Korea, Jan. 23, 2026 (GLOBE NEWSWIRE) -- K Wave Media (the “Company”) announced today that it received a written notification (the “Notice”) from the Nasdaq Stock Market LLC (“Nasdaq”) dated January 22, 2025, notifying the Company that it is not in compliance with the minimum Market Value of Listed Securities (“MVLS”) requirement set forth in Nasdaq Listing Rules for continued listing on The Nasdaq Global Market.
Pursuant to Nasdaq Listing Rule 5810(c)(3)(C), the Company has a 180-calendar-day compliance period and during this period, the Company's MVLS closes at or above
This letter has no immediate effect on the listing or trading of the Company's ordinary shares. The Company will consider available options during this period to restore compliance with Nasdaq listing requirements. The Company remains committed to executing its long-term business strategy and enhancing shareholder value.
About K Wave Media
K Wave Media (KWM) is a publicly listed entertainment and Bitcoin treasury company dedicated to creating, distributing, and monetizing high-quality content across multiple platforms. Since going public in 2025, KWM has focused on strategic growth initiatives, including acquisitions, digital platforms, and digital asset treasury management.
Forward Looking Statements:
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this communication and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. Some important factors that could cause actual results to differ materially from those in any forward-looking statements could include changes in domestic and foreign business, market, financial, political and legal conditions.
If any of these risks materialize or the Company’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company does not presently know, or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s current expectations, plans and forecasts of future events and views as of the date hereof. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein and the risk factors of the Company described in the Company’s Form 20-F initially filed with the SEC on May 14, 2025, as amended, including those under “Risk Factors” therein. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Media Contact:
Investor Relations: info@kwavemedia.com
Evan Sneider: esneider@redroosterpr.com
FAQ
What did K Wave Media (KWM) announce on January 23, 2026 about Nasdaq compliance?
How long does KWM have to regain Nasdaq MVLS compliance?
What MVLS level must KWM reach to regain Nasdaq compliance?
Does the Nasdaq notice affect trading of KWM shares immediately?
What steps will KWM take to restore Nasdaq compliance for KWM stock?
