Lianhe Sowell International Group Ltd Receives Nasdaq Minimum Bid Price Deficiency Notice

Rhea-AI Summary

Lianhe Sowell International Group (Nasdaq: LHSW) received a Nasdaq notice dated January 22, 2026 for failure to meet the minimum bid price of $1.00 under Nasdaq Listing Rule 5550(a)(2).

The notification does not affect current trading. The company has a 180-day compliance period until July 21, 2026 to regain compliance, or it may seek an additional 180-day cure period by meeting other listing standards and notifying Nasdaq, potentially via a reverse stock split.

Positive

• Securities continue trading on Nasdaq
• Company has a 180-day compliance window until July 21, 2026

Negative

• Closing bid price is below the $1.00 Nasdaq minimum bid price
• Risk of delisting if compliance not regained by July 21, 2026
• May need a reverse stock split to cure the bid-price deficiency

Key Figures

Minimum bid price: $1.00 per share Initial compliance period: 180 calendar days Compliance deadline: July 21, 2026 +2 more

5 metrics

Minimum bid price $1.00 per share Nasdaq Listing Rule 5550(a)(2) requirement

Initial compliance period 180 calendar days Compliance period ending July 21, 2026

Compliance deadline July 21, 2026 End of initial Nasdaq bid price compliance period

Regain compliance window 10 consecutive business days Required period with bid at or above $1.00

Additional grace period 180 calendar days Potential second Nasdaq compliance period if criteria met

Market Reality Check

Price: $0.7115 Vol: Volume 486,348 is below t...

low vol

$0.7115 Last Close

Volume Volume 486,348 is below the 20-day average of 1,537,491 (relative volume 0.32). low

Technical Shares trade below the $2.01 200-day MA and are 89.85% under the 52-week high.

Peers on Argus

LHSW gained 13.7% while peers were mixed: ARAI up 12.62%, LIDR modestly higher, ...

1 Up

LHSW gained 13.7% while peers were mixed: ARAI up 12.62%, LIDR modestly higher, ALAR and XBP down, and MLGO nearly flat. This points to a stock-specific move rather than a broad sector trend.

Historical Context

5 past events · Latest: Jan 26 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 26	UAE robotics HQ plan	Positive	-4.0%	Announced US$200M UAE robotics industrial headquarters with large capacity targets.
Dec 01	Contract wins	Positive	+7.8%	Won procurement bids for medical rehabilitation and electronic test instruments in China.
Nov 07	Dual-class approval	Negative	-6.2%	Shareholders approved dual-class structure with high-vote Class B shares for insiders.
Oct 24	Gov’t recognition	Positive	+3.9%	Subsidiary named a “Specialized and Innovative Little Giant” by MIIT in China.
Oct 21	UAE funding term sheet	Positive	+3.8%	Signed $105M non-binding term sheet to fund first AI robot base in UAE.

Pattern Detected

News has often led to aligned price moves, with one notable divergence on a large UAE robotics HQ investment update.

Recent Company History

Over the past six months, LHSW reported several strategic milestones. A dual-class share structure and insider control changes in Nov 2025 coincided with a -6.15% move. Operational wins, including procurement contracts on Dec 1, 2025 and a UAE AI robot funding term sheet in Oct 2025, saw positive reactions. Recognition as a “Specialized and Innovative Little Giant” also aligned with gains. A later UAE robotics headquarters plan in Jan 2026 drew a negative reaction, showing investors occasionally push back on large expansion plans.

Market Pulse Summary

This announcement highlights a Nasdaq minimum bid price deficiency and sets a clear timetable: 180 d...

Analysis

This announcement highlights a Nasdaq minimum bid price deficiency and sets a clear timetable: 180 days to regain a $1.00 bid for 10 consecutive business days, with a possible second 180-day period. LHSW had already been trading well below its $2.01 200-day MA and far under its $8.18 52-week high. Recent history shows mixed reactions to structural and expansion news, so investors may watch for any concrete compliance measures, such as corporate actions, and how these interact with the company’s ongoing UAE robotics initiatives and governance structure.

Key Terms

nasdaq capital market, minimum bid price, reverse stock split

3 terms

nasdaq capital market regulatory

"for continued listing on The Nasdaq Capital Market."

The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.

minimum bid price financial

"not in compliance with the requirement to maintain a minimum bid price of $1 per share"

The minimum bid price is the lowest share price that a market, regulator, or specific offering will accept for a trade, listing, or auction—think of it as a reserve or floor that a stock must meet to qualify for certain actions. It matters to investors because falling below that floor can limit trading options, trigger compliance measures or delisting risks, and affect liquidity and the perceived value of a holding, much like a reserve price in an auction sets the baseline for a sale.

reverse stock split financial

"including by effecting a reverse stock split, if necessary."

A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.

AI-generated analysis. Not financial advice.

SHENZHEN, China, Jan. 27, 2026 /PRNewswire/ -- Lianhe Sowell International Group Ltd (Nasdaq: LHSW)  today announced that it has received a notice (the "Notice") from The Nasdaq Stock Market LLC ("Nasdaq") dated January 22, 2026 stating that the Company is not in compliance with the requirement to maintain a minimum bid price of $1 per share as set forth under Nasdaq Listing Rule 5550(a)(2) (the "Bid Price Rule") for continued listing on The Nasdaq Capital Market.

The notification letter has no immediate effect on the listing of the Company's securities, and the Company's securities continue to trade on Nasdaq under the symbol "LHSW".

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of one hundred eighty (180) calendar days, or until July 21, 2026 (the "Compliance Period"), to regain compliance with Nasdaq's Bid Price Rule. If at any time during the Compliance Period, the closing bid price per share of the Company's securities is at least $1.00 for a minimum of ten (10) consecutive business days, Nasdaq will provide the Company a written confirmation of compliance and the matter will be closed.

In the event the Company does not regain compliance by July 21, 2026, the Company may be eligible for an additional 180 calendar day grace period. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, including by effecting a reverse stock split, if necessary.

The Company intends to monitor the closing bid price of its securities and will consider its options in order to regain compliance with the Bid Price Rule. 

About Lianhe Sowell International Group Ltd

Lianhe Sowell International Group Ltd (Nasdaq: LHSW) provides industrial vision and industrial robotics solutions. With expertise in the field of machine vision and intelligent equipment, the Company specializes in smart transportation, industrial automation, artificial intelligence, and machine vision. Committed to offering comprehensive intelligent solutions to customers worldwide, the Company continuously advances the intelligent transformation of various industries through technological innovation. For more information, please visit: http://www.sowellrobot.com/

Forward-Looking Statement

This press release contains forward-looking statements. 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," "plan" 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 uncertainties related to market conditions and other risk factors discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Lianhe Sowell International Group Ltd
ir@sowellrobot.com 

WFS Investor Relations Inc.
Email: services@wealthfsllc.com 
Phone: +1 628 283 9214

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SOURCE Lianhe Sowell International Group Ltd

FAQ

What did LHSW announce about Nasdaq compliance on January 28, 2026?

The company said it received a Nasdaq notice dated January 22, 2026 for failing to meet the $1.00 minimum bid price. According to the company, trading continues while LHSW has a 180-day compliance period to regain the required closing bid level.

How long does LHSW have to regain Nasdaq compliance for the $1.00 bid price?

LHSW has a 180-calendar-day compliance period ending July 21, 2026 to regain the $1.00 bid price. According to the company, if compliance is achieved for ten consecutive business days Nasdaq will close the matter without further action.

What happens if LHSW does not meet Nasdaq bid-price rules by July 21, 2026?

If LHSW fails to regain compliance by July 21, 2026 it may be eligible for an additional 180-day grace period. According to the company, eligibility requires meeting market-value and other initial listing standards and notifying Nasdaq of intent to cure.

Will LHSW shares be delisted immediately after the Nasdaq notice?

No, the notice has no immediate effect and LHSW securities continue trading on Nasdaq under the symbol LHSW. According to the company, delisting would only follow Nasdaq procedures if the company fails to regain compliance within allowed periods.

Could LHSW use a reverse stock split to regain Nasdaq compliance?

Yes, the company may consider a reverse stock split as an option to cure the deficiency if necessary. According to the company, effecting a reverse split is among the measures it will consider to meet the bid-price requirement.