Rail Vision Receives Nasdaq Notification Regarding Minimum Bid Requirements

Rhea-AI Summary

Rail Vision (Nasdaq: RVSN) announced receiving a notification from Nasdaq on March 6, 2025, regarding non-compliance with the minimum bid price requirement. The company's shares have traded below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).

Nasdaq has granted Rail Vision a 180-day compliance period until September 2, 2025, during which the company must achieve a closing bid price of at least $1.00 for 10 consecutive business days to regain compliance. If unsuccessful, the company may qualify for an additional 180-day extension, provided it meets other listing requirements. Failure to comply could result in delisting from Nasdaq.

Positive

• 180-day grace period granted to regain compliance
• Possibility of additional 180-day extension if criteria met
• Continued Nasdaq listing during compliance period

Negative

• Stock trading below $1.00 for 30 consecutive days
• Risk of potential Nasdaq delisting if compliance not achieved
• No guarantee of regaining compliance with listing requirements

Insights

Financial Markets Expert

Rail Vision's Nasdaq minimum bid notice represents a material regulatory development with significant implications. The $0.49 share price has remained below the mandatory $1.00 threshold for 30 consecutive trading days, triggering formal non-compliance procedures.

While the 180-day compliance window until September 2nd provides breathing room, the delisting risk introduces several consequential challenges:

• Potential reduction in trading liquidity if eventually moved to OTC markets
• Diminished institutional investor access due to investment mandate restrictions
• Possible impairment of future capital raising capabilities
• Increased difficulty attracting analyst coverage and market visibility

To regain compliance, Rail Vision needs its shares to close above $1.00 for at least 10 consecutive sessions - requiring a 102% increase from current levels. Without organic price appreciation, management may need to consider a reverse stock split, though this mechanical solution doesn't address underlying valuation concerns.

The company's micro-cap status ($10.1M market capitalization) exacerbates these challenges, as smaller firms typically face steeper hurdles regaining compliance without dilutive financing. While a second 180-day extension remains possible, this notification introduces a significant regulatory overhang that demands strategic attention from management and vigilance from investors regarding the company's remediation plan.

Ra’anana, Israel, March 07, 2025 (GLOBE NEWSWIRE) -- Rail Vision Ltd. (the “Company”) (Nasdaq: RVSN), a technology company at the forefront of revolutionizing railway safety and the data-related market, announced today that on March 6, 2025, the Company received a written notice from the Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2), as the Company’s closing bid price for its Ordinary Shares was below $1.00 per share for the last 30 consecutive business days.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been granted a 180-calendar day compliance period, or until September 2, 2025, to regain compliance with the minimum bid price requirement. During the compliance period, the Company’s Ordinary Shares will continue to be listed and traded on the Nasdaq Stock Market. To regain compliance, the closing bid price of the Company’s Ordinary Shares must meet or exceed $1.00 per share for at least 10 consecutive business days during the 180-calendar day compliance period.

If the Company is not in compliance by September 2, 2025, the Company may be afforded a second 180-calendar day compliance period. To qualify for this additional time, 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 minimum bid price requirement and will need to provide written notice of its intention to cure the deficiency during the second compliance period. If the Company does not regain compliance within the allotted compliance period(s), including any extensions that may be granted by Nasdaq, Nasdaq will provide notice that the Company’s Ordinary Shares will be subject to delisting.

The Company intends to monitor the closing bid price of its Ordinary Shares between now and September 2, 2025, and will consider available options to resolve the Company’s noncompliance with the minimum bid price requirement as may be necessary. There can be no assurance that the Company will be able to regain compliance with the minimum bid price requirement or will otherwise be in compliance with other Nasdaq listing criteria.

About Rail Vision Ltd.

Rail Vision is a technology company that is seeking to revolutionize railway safety and the data-related market. The Company has developed cutting-edge, artificial intelligence-based, industry-leading technology specifically designed for railways. The Company has developed its railway detection and systems to save lives, increase efficiency, and dramatically reduce expenses for the railway operators. Rail Vision believes that its technology will significantly increase railway safety around the world, while creating significant benefits and adding value to everyone who relies on the train ecosystem: from passengers using trains for transportation to companies that use railways to deliver goods and services. In addition, the company believes that its technology has the potential to advance the revolutionary concept of autonomous trains into a practical reality. For more information, please visit https://www.railvision.io/

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report on Form 20-F filed with the SEC on March 28, 2024. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Rail Vision is not responsible for the contents of third-party websites.

Investor Relations

Michal Efraty
investors@railvision.io

FAQ

What is the deadline for Rail Vision (RVSN) to meet Nasdaq's minimum bid requirement?

Rail Vision has until September 2, 2025, to meet the minimum bid requirement of $1.00 per share for at least 10 consecutive business days.

What happens if RVSN stock doesn't reach $1.00 by September 2025?

If RVSN fails to comply by September 2025, it may receive an additional 180-day extension if it meets other listing requirements. Otherwise, it faces potential delisting from Nasdaq.

How long must RVSN stock trade above $1.00 to regain Nasdaq compliance?

RVSN stock must trade above $1.00 for at least 10 consecutive business days to regain compliance.

Why did Rail Vision (RVSN) receive a Nasdaq deficiency notice?

RVSN received the notice because its closing bid price remained below $1.00 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).