Prestige Wealth Inc. Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Prestige Wealth (NASDAQ: PWM) has received a notification from Nasdaq on April 1, 2025, regarding non-compliance with the minimum bid price requirement. The company's stock has traded below the required $1 per share threshold for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).

PWM has been granted an initial 180-day compliance period until September 29, 2025 to regain compliance. If unsuccessful, the company may be eligible for an additional 180-day extension, provided it meets other listing requirements and demonstrates intention to cure the deficiency, potentially through a reverse stock split.

The notification has no immediate impact on PWM's listing or trading status. However, failure to meet compliance requirements could result in delisting from Nasdaq.

Positive

• 180-day grace period granted to regain compliance
• Potential eligibility for additional 180-day extension
• No immediate impact on current Nasdaq listing status

Negative

• Stock trading below $1 for 30 consecutive business days
• Risk of potential delisting from Nasdaq if compliance not achieved
• May need to implement reverse stock split, which could affect share structure

Insights

Financial Regulatory Analyst

Prestige Wealth's Nasdaq bid price deficiency notification represents a significant compliance challenge with potential consequences for shareholders. The company must address its sub-$1 share price within the 180-day compliance period ending September 29, 2025, or risk delisting from Nasdaq.

With the current share price at $0.42, PWM needs an approximate 135% price increase to meet the minimum requirement—a substantial hurdle. While the notification has no immediate impact, the longer-term implications are concerning:

• Most companies in this situation implement reverse stock splits to artificially raise share prices while maintaining market value
• If ultimately delisted, PWM would likely move to over-the-counter markets, resulting in reduced liquidity, institutional ownership limitations, and potentially higher capital costs
• The additional 180-day extension period remains possible if PWM meets other Nasdaq requirements, providing up to a year to resolve the issue

The company's explicit statement that "there can be no assurance" of regaining compliance signals material uncertainty. The micro-cap status ($13.6 million market cap) combined with this regulatory challenge creates a precarious position for maintaining mainstream market access.

While many companies successfully navigate these deficiency notices through corporate actions like reverse splits, the underlying factors that drove the share price below $1 remain unaddressed in the company's announcement.

HONG KONG, April 02, 2025 (GLOBE NEWSWIRE) -- Prestige Wealth Inc. (NASDAQ: PWM) (“PWM”, or the “Company”), a wealth management and asset management services provider based in Hong Kong, today announced that, on April 1, 2025, the Company received a letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that based on the closing bid price of the Class A ordinary shares of the Company for the last 30 consecutive business days, the Company no longer meets the continued listing requirement of Nasdaq under Nasdaq Listing Rules 5550(a)(2), to maintain a minimum bid price of $1 per share.

The notification has no immediate effect on the listing or trading of the Company’s Class A ordinary shares on Nasdaq. Nasdaq has provided the Company with an 180 calendar days compliance period, or until September 29, 2025, in which to regain compliance with Nasdaq continued listing requirement. In the event that the Company does not regain compliance in the compliance period, the Company may be eligible for an additional 180 calendar days, should the Company 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 is able to provide written notice of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. However, if it appears that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq will provide notice that the Company’s securities will be subject to delisting.

The Company is currently evaluating options to regain compliance and intends to timely regain compliance with Nasdaq’s continued listing requirement. Although the Company will use all reasonable efforts to achieve compliance with Rule 5550(a)(2), there can be no assurance that the Company will be able to regain compliance with that rule or will otherwise be in compliance with other Nasdaq continued listing requirement.

About Prestige Wealth Inc.

Prestige Wealth Inc. is a wealth management and asset management services provider based in Hong Kong, assisting its clients in identifying and purchasing well-matched wealth management products and global asset management products. With a focus on quality service, the Company has retained a loyal customer base consisting of high-net-worth and ultra-high-net-worth clients in Asia. Through the Company’s wealth management service, it introduces clients to customized wealth management products and provides them with tailored value-added services. The Company provides asset management services via investment funds that it manages and also provides discretionary account management services and asset management-related advisory services to clients. For more information, please visit the Company’s website: http://ir.prestigewm.hk

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For more information, please contact:
Prestige Wealth Inc.
Investor Relations Department
Email: ir@pwmweb.com

FAQ

What is the deadline for PWM to meet Nasdaq's minimum bid price requirement?

PWM has until September 29, 2025 (180 days) to meet the $1 minimum bid price requirement, with potential for additional 180 days extension if eligible.

What happens if PWM stock fails to reach $1 minimum bid price by the deadline?

If PWM fails to comply, it may face delisting from Nasdaq unless granted an additional 180-day extension and successfully meets requirements during that period.

What options does PWM have to regain Nasdaq compliance?

PWM can attempt to naturally increase share price or implement a reverse stock split to meet the $1 minimum bid requirement.

How long has PWM stock been trading below Nasdaq's minimum requirement?

PWM's stock has traded below the $1 minimum bid price for 30 consecutive business days prior to April 1, 2025.