PicoCELA Inc. Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

PicoCELA (NASDAQ:PCLA), a Tokyo-based enterprise wireless mesh solutions provider, received a notification from Nasdaq on August 26, 2025, regarding non-compliance with the minimum bid price requirement. The company's stock has traded below $1.00 per share for 30 consecutive business days from July 15 to August 25, 2025.

PicoCELA has been granted 180 calendar days until February 23, 2026, to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. The company may consider implementing a reverse stock split, which must be completed at least 10 business days before the deadline to avoid potential delisting.

Positive

• Company maintains Nasdaq listing status during compliance period
• 180-day grace period provided to address the deficiency
• Company operations remain unaffected by the notification

Negative

• Stock price consistently below $1.00 minimum requirement
• Risk of potential delisting if compliance not achieved by February 23, 2026
• Possible reverse stock split may be needed to maintain listing

Insights

Financial Compliance Analyst

PicoCELA faces Nasdaq delisting risk due to shares trading below $1.00; has until February 2026 to regain compliance.

PicoCELA has received a deficiency notification from Nasdaq for failing to meet the exchange's minimum bid price requirement. The company's American Depositary Shares (ADSs) have traded below the required $1.00 threshold for 30 consecutive business days between July 15 and August 25, 2025.

This notification initiates a standard regulatory process that gives PicoCELA 180 calendar days (until February 23, 2026) to regain compliance by achieving a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. If unsuccessful, the company could face delisting from the Nasdaq Capital Market.

To address this situation, PicoCELA has several options, with a reverse stock split being the most commonly implemented solution. This would reduce the number of outstanding shares while increasing the price per share proportionally. The company must implement any reverse split at least ten business days before the February deadline.

This deficiency notification is a concerning development for PicoCELA shareholders, as it indicates sustained weakness in share price and market perception. While the company states its operations remain unaffected, compliance failure could significantly impact liquidity, institutional investment eligibility, and overall market confidence. The 180-day compliance window provides time for recovery, but the underlying factors driving the share price below $1.00 warrant careful investor attention.

TOKYO, Aug. 30, 2025 /PRNewswire/ -- PicoCELA Inc. ("PicoCELA" or the "Company") (Nasdaq: PCLA), a Tokyo-based provider of enterprise wireless mesh solutions, today announced that the Company received a letter (the "Notification Letter") from the Listings Qualifications Department of the Nasdaq Stock Market LLC ("Nasdaq") on  August 26, 2025 , notifying the Company that it is not in compliance with the minimum bid price requirement as set forth under Nasdaq Listing Rule 5550(a)(2) for continued listing on Nasdaq. This press release is issued pursuant to Nasdaq Listing Rule 5810(b), which requires prompt disclosure upon the receipt of a deficiency notification.

Nasdaq Listing Rule 5550(a)(2) requires listed companies to maintain a minimum bid price of US$1.00 per share and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company's American Depositary Shares ("ADSs") for the 30 consecutive business days from July 15 , 202 5 to August 25 , 202 5 , the Company no longer meets the minimum bid price requirement.

The Notification Letter does not impact the Company's listing on the Nasdaq Capital Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided 180 calendar days, or until February 23 , 202 6 , to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the Company's ADSs must have a closing bid price of at least US$1.00 for a minimum of 10 consecutive business days. I f the Company chooses to implement a reverse stock split in order to regain compliance , it must complete the split no later than ten business days prior to February 23, 2026 . In the event the Company does not regain compliance by February 23 , 202 6 , the Company may be eligible for additional time to regain compliance or may face delisting.

The Company's operations are not affected by the receipt of the Notification Letter. The Company intends to monitor the closing bid price of its ADSs and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse share split of its outstanding ADSs, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.

About PicoCELA Inc.

 PicoCELA is a Tokyo-based provider of enterprise wireless mesh solutions, specializing in the manufacturing, installation, and services of mesh Wi-Fi access point devices. PicoCELA Backhaul Engine, the Company's proprietary patented wireless mesh communication technology software, eliminates the need for extensive LAN cabling and enables flexible and easy installation of Wi-Fi network devices. PicoCELA also offers a cloud portal service, PicoManager, which allows users to monitor connectivity and communication traffic, as well as install edge-computing software on the Company's PCWL mesh Wi-Fi access points.

Cautionary Note Regarding Forward-Looking Statements

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions, and other factors discussed in the "Risk Factors" section of the Company's SEC filings. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

PicoCELA Investor Contact:
global@picocela.com

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SOURCE PicoCELA Inc.

FAQ

Why did PicoCELA (PCLA) receive a Nasdaq deficiency notice?

PicoCELA received the notice because its stock traded below the required minimum bid price of $1.00 per share for 30 consecutive business days from July 15 to August 25, 2025.

What is the deadline for PicoCELA to regain Nasdaq compliance?

PicoCELA has until February 23, 2026 to regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of 10 consecutive business days.

What options does PicoCELA have to maintain its Nasdaq listing?

PicoCELA can either achieve natural stock price recovery above $1.00 or implement a reverse stock split no later than 10 business days before February 23, 2026.

Will the Nasdaq notification affect PicoCELA's current operations?

No, PicoCELA's operations are not affected by the receipt of the Nasdaq notification letter.

What happens if PicoCELA fails to meet the Nasdaq compliance deadline?

If PicoCELA fails to regain compliance by February 23, 2026, it may be eligible for additional time or face potential delisting from the Nasdaq Capital Market.