Delisting of Securities from The Nasdaq Stock Market

Rhea-AI Summary

Nasdaq (NASDAQ:NDAQ) has announced the delisting of securities from multiple companies from The Nasdaq Stock Market. The affected companies include Digital Brands Group, Lipella Pharmaceuticals, ZyVersa Therapeutics, Crown LNG Holdings, Brainstorm Cell Therapeutics, Wag! Group, Ontrak, TPI Composites, Embrace Change Acquisition Corp, and ModivCare.

All these securities were previously suspended from trading between December 2024 and August 2025 and haven't traded on Nasdaq since their respective suspension dates. The delistings affect various types of securities including common stocks, warrants, ordinary shares, units, and rights.

Positive

• None.

Negative

• Delisting of 10 companies' securities from Nasdaq indicates potential market stress or compliance issues
• Multiple companies across different sectors affected, suggesting broader market concerns
• Loss of trading venue for affected securities impacts their liquidity and accessibility

Insights

Securities Delisting Expert

Nasdaq's delisting of multiple companies signals regulatory compliance issues and creates significant trading limitations for affected securities.

Nasdaq has announced the formal delisting of securities from 10 different companies whose trading had already been suspended for periods ranging from approximately 1-9 months. This multi-company delisting action affects various security types including common stocks, warrants, ordinary shares, units, and rights.

The affected companies represent diverse sectors including healthcare (Lipella Pharmaceuticals, ZyVersa Therapeutics, Brainstorm Cell Therapeutics, Ontrak), manufacturing (TPI Composites), energy (Crown LNG), consumer services (Wag! Group, ModivCare), retail (Digital Brands Group), and SPACs (Embrace Change Acquisition).

This formal delisting follows prolonged trading suspensions, indicating these companies likely failed to meet Nasdaq's continued listing requirements. Typical causes include: minimum bid price requirements (stock trading below $1 for extended periods), inadequate stockholders' equity, failure to file timely financial reports with the SEC, or falling below minimum market value thresholds.

For shareholders, this delisting creates significant implications. The securities will likely move to over-the-counter (OTC) markets where trading volumes typically decrease dramatically, leading to reduced liquidity, wider bid-ask spreads, and potentially lower valuations. Institutional investors often have mandates preventing ownership of non-exchange-listed securities, forcing additional selling pressure.

Additionally, delisted companies face more limited access to capital markets, reduced analyst coverage, and diminished media attention, creating challenges for future financing and growth. The clustering of multiple delistings in this announcement reflects the challenging market environment where smaller capitalization companies have struggled to maintain exchange compliance.

NEW YORK, Sept. 24, 2025 (GLOBE NEWSWIRE) -- The Nasdaq Stock Market announced today that it will delist the warrants of Digital Brands Group, Inc. Digital Brands Group, Inc.’s warrants were suspended on December 18, 2024 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of Lipella Pharmaceuticals Inc. Lipella Pharmaceuticals Inc.’s stock was suspended on June 20, 2025 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of ZyVersa Therapeutics, Inc. ZyVersa Therapeutics, Inc.’s common stock was suspended on July 17, 2025 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the ordinary shares and warrants of Crown LNG Holdings Limited. Crown LNG Holdings Limited’s securities were suspended on July 17, 2025 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of Brainstorm Cell Therapeutics Inc. Brainstorm Cell Therapeutics Inc.’s stock was suspended on July 18, 2025 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock and warrants of Wag! Group Co. Wag! Group Co.’s securities were suspended on July 30, 2025 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of Ontrak, Inc. Ontrak, Inc.’s stock was suspended on August 18, 2025 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of TPI Composites, Inc. TPI Composites, Inc.’s stock was suspended on August 19, 2025 and has not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the ordinary shares, units, warrants, and rights of Embrace Change Acquisition Corp. Embrace Change Acquisition Corp’s securities were suspended on August 21, 2025 and have not traded on Nasdaq since that time.

Nasdaq also announced today that it will delist the common stock of ModivCare Inc. ModivCare Inc.’s stock was suspended on August 28, 2025 and has not traded on Nasdaq since that time.

For more information about The Nasdaq Stock Market, visit the Nasdaq Web site at http://www.nasdaq.com. Nasdaq’s rules governing the delisting of securities can be found in the Nasdaq Rule 5800 Series, available on the Nasdaq Web site: https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5800-series.

FAQ

How many companies are being delisted from Nasdaq in September 2025?

10 companies are being delisted from Nasdaq, including Digital Brands Group, Lipella Pharmaceuticals, ZyVersa Therapeutics, Crown LNG Holdings, Brainstorm Cell Therapeutics, Wag! Group, Ontrak, TPI Composites, Embrace Change Acquisition Corp, and ModivCare.

When were these companies suspended from trading on Nasdaq?

The companies were suspended between December 18, 2024 and August 28, 2025, with none trading on Nasdaq since their respective suspension dates.

What types of securities are being delisted from Nasdaq?

The delisting includes various types of securities: common stocks, warrants, ordinary shares, units, and rights, depending on the company.

Where can investors find Nasdaq's rules about security delisting?

Nasdaq's delisting rules can be found in the Nasdaq Rule 5800 Series, available on the Nasdaq Listing Center website at https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5800-series.

What happens to shares of companies after being delisted from Nasdaq?

After delisting, securities are removed from Nasdaq trading platform. They may continue trading on over-the-counter (OTC) markets, but typically with reduced liquidity and stricter trading limitations.