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Moolec Receives Staff Determination Letter and Provides Update on Nasdaq Listing Compliance Status

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Moolec Science (NASDAQ:MLEC) received a Nasdaq Listing Qualifications determination letter saying it does not meet the $2.5 million minimum stockholders' equity requirement under Nasdaq Listing Rule 5550(b)(1). Management disclosed it expects to regain compliance by recognizing an estimated $105.8 million gain from derecognition of certain subsidiaries after their bankruptcy proceedings, which the company says will produce positive net income sufficient to meet Nasdaq's $500,000 net income standard. The derecognition accounting process is underway following the subsidiaries' bankruptcy filings. This announcement is made under Nasdaq Listing Rule 5810(b) to report the receipt of a non-compliance notice.

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Positive

  • Estimated derecognition gain of $105.8 million
  • Expected to generate positive net income above $500,000
  • Derecognition accounting process is already underway

Negative

  • Company currently non-compliant with Nasdaq $2.5M equity rule
  • Nasdaq issued a Listing Qualifications determination letter
  • Reliance on post-bankruptcy accounting gain with no timeline provided

News Market Reaction – MLEC

+8.41% 4.1x vol
24 alerts
+8.41% Session close to close
+35.7% Peak Tracked
-27.6% Trough Tracked
$2.89M Market Cap
4.1x Rel. Volume

In the Jan 2 session, MLEC gained 8.41%, reflecting a notable positive market reaction. Argus tracked a peak move of +35.7% during that session. Argus tracked a trough of -27.6% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. Trading volume was very high at 4.1x the daily average, suggesting strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +8.4% in the session following this news. A strong positive reaction aligns with the...
Analysis

The stock moved +8.4% in the session following this news. A strong positive reaction aligns with the company’s indication that an estimated $105.8 million derecognition gain could restore compliance via Nasdaq’s net income standard of $500,000. Past operational wins, such as the Sep 11 regulatory approval, also drew a strong upside response. However, the stock’s position 97.57% below its 52-week high and heavy focus on listing risks underscore that sustainability would depend on successfully executing the outlined accounting steps.

Key Figures

Minimum equity requirement: $2.5 million Expected derecognition gain: $105.8 million Net income standard: $500,000
3 metrics
Minimum equity requirement $2.5 million Nasdaq Listing Rule 5550(b)(1) stockholders' equity threshold
Expected derecognition gain $105.8 million Estimated gain from derecognition of certain bankrupt subsidiaries
Net income standard $500,000 Nasdaq net income requirement cited for continued listing

Historical Context

5 past events · Latest: Dec 31 (Neutral)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Dec 31 Share consolidation plan Neutral -4.2% Announced 15-for-1 share consolidation to address Nasdaq minimum bid price rule.
Dec 11 Operational expansion Positive -6.7% Reported strong GLASO safflower campaign with higher yields and acreage expansion.
Nov 28 Filing delay notice Negative -2.3% Nasdaq letter over failure to timely file Form 20-F and related hearing process.
Nov 21 Bid price deficiency Negative -1.6% Nasdaq determination on sub‑$1.00 bid price and discussion of potential reverse split.
Sep 11 Regulatory approval & ops Positive +11.3% Argentine approval for GLASO, U.S. acreage expansion, and CFO appointment.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent Nasdaq listing and compliance headlines for MLEC have typically led to modest negative price reactions, while operational or regulatory wins have seen stronger positive responses.

Recent Company History

Over the last few months, Moolec has repeatedly addressed Nasdaq compliance. On Nov 21 and Nov 28, letters about minimum bid price and delayed Form 20-F filing were followed by modest declines. A Sep 11 update on Argentine regulatory approval and acreage expansion produced a 11.29% gain. On Dec 11, strong GLASO campaign metrics still saw a selloff. The new equity-based non-compliance letter continues this listing-risk narrative alongside the recently announced share consolidation.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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GEORGE TOWN, CAYMAN ISLANDS / ACCESS Newswire / December 31, 2025 / Moolec Science SA ("Moolec" or the "Company") received an additional determination letter (the "Letter") from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company does not currently meet the minimum stockholders' equity requirement of $2.5 million under Nasdaq Listing Rule 5550(b)(1).

As previously disclosed in the Company's Form 20-F for the year ended June 30, 2025, management expects to regain compliance with the Nasdaq continued listing standards through the recognition of an estimated gain of approximately $105.8 million related to the derecognition of certain subsidiaries following their bankruptcy proceedings. Upon completion of this accounting process, the Company anticipates that the gain resulting from this accounting process will generate a positive net income, enabling the Company to satisfy Nasdaq's net income standard requirement of $500,000.

The derecognition process is already underway following the bankruptcy filing of certain subsidiaries.

This disclosure is made in accordance with Nasdaq Listing Rule 5810(b), which requires prompt public announcement upon receipt of a notification of non-compliance.

About Moolec Science SA

Moolec Science is an innovation-driven company engineering plants and microbes to unlock scalable protein solutions for the global food system. By integrating Molecular Farming and precision fermentation, Moolec combines the cost efficiency of crops with the functionality and nutrition of animal proteins, creating sustainable and commercially viable ingredients. The Company's diversified pipeline includes alternative proteins, bioactive compounds, nutritional oils, and biological inputs for regenerative agriculture. Moolec has a robust intellectual property portfolio with more than 118 granted and pending patents across multiple technology platforms. With operations spanning the United States, Europe and South America, Moolec is advancing a seed-to-ingredient approach designed to transform the future of food production. Moolec is publicly listed on Nasdaq under the ticker "MLEC." For more information, please visit www.moolecscience.com and ir.moolecscience.com.

Forward-looking Statements

This press release contains "forward-looking statements." Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements with respect to the Company's plan to file reports and regain compliance under the Nasdaq rules, performance, prospects, revenues, and other aspects of the business of Moolec are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors, about which we cannot be certain. We cannot assure you that the forward-looking statements in this press release will prove accurate. These forward-looking statements are subject to a number of significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among others, changes in applicable laws or regulations, the possibility that Moolec may be adversely affected by economic, business and/or other competitive factors, costs related to the scaling up of Moolec's business and other risks and uncertainties, including those included under the header "Risk Factors" in Moolec's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC"), as well as Moolec's other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, you should not put undue reliance on these statements.

Contact: ir@moolecscience.com (phone: +5493412034927)

SOURCE: Moolec Science



View the original press release on ACCESS Newswire

FAQ

What Nasdaq rule did Moolec (MLEC) fail to meet on December 31, 2025?

Moolec did not meet Nasdaq Listing Rule 5550(b)(1), the $2.5 million minimum stockholders' equity requirement.

How does Moolec plan to regain Nasdaq compliance for MLEC?

Management expects to recognize an estimated $105.8 million derecognition gain from certain subsidiaries, producing positive net income above $500,000.

Has Moolec started the accounting steps to recognize the reported $105.8M gain for MLEC?

Yes. The company states the derecognition accounting process is already underway following bankruptcy filings.

Does receiving a Nasdaq determination letter mean MLEC will be delisted?

The letter notifies non-compliance with the $2.5M equity rule; it does not by itself state a delisting outcome.

What net income threshold does Nasdaq require for continued listing that Moolec mentioned?

The company referenced Nasdaq's net income standard of $500,000.

Where can investors find this Nasdaq compliance update for MLEC dated December 31, 2025?

The company publicly announced the Nasdaq determination in accordance with Listing Rule 5810(b).