ScanTech AI Announces Receipt of Nasdaq Deficiency Letter

Rhea-AI Summary

ScanTech AI (Nasdaq: STAI) has received a deficiency notice from Nasdaq due to 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 May 23, 2025 to July 8, 2025.

The company has been granted a 180-day compliance period until January 6, 2026 to meet the minimum bid price requirement. To regain compliance, STAI's closing bid price must be at least $1.00 per share for a minimum of 10 consecutive business days. If unsuccessful, the company may be eligible for an additional period by transferring to the Nasdaq Capital Market, potentially implementing a reverse stock split.

Positive

• Company remains listed on Nasdaq with 180-day grace period to regain compliance
• Multiple options available to maintain listing, including potential transfer to Nasdaq Capital Market
• Opportunity to regain compliance through 10 consecutive days of $1.00+ closing bid price

Negative

• Stock price consistently below $1.00 minimum requirement for 30 consecutive business days
• Risk of potential delisting if compliance is not achieved by January 6, 2026
• Possible need for reverse stock split to maintain listing

Insights

Securities Compliance Specialist

ScanTech AI faces Nasdaq delisting risk due to sub-$1 share price, with compliance deadline of January 2026.

ScanTech AI has received a Nasdaq deficiency notice for failing to maintain the minimum bid price requirement of $1.00 per share over 30 consecutive business days from May 23 to July 8, 2025. This represents a significant regulatory challenge, though investors should understand this notice has no immediate impact on the company's current Nasdaq listing.

The company now enters a standard 180-day compliance period ending January 6, 2026, during which it must regain compliance by maintaining a closing bid price of at least $1.00 for a minimum of 10 consecutive business days. This timeline provides ScanTech AI with approximately six months to address this deficiency.

If unable to meet compliance requirements within the initial period, ScanTech AI has potential remediation options, including transferring to the Nasdaq Capital Market (which has less stringent requirements) and potentially implementing a reverse stock split to artificially increase share price. However, these secondary measures would signal continued challenges in naturally increasing shareholder value.

This deficiency notice reflects underlying investor concerns about ScanTech AI's financial performance or growth prospects that have contributed to sustained downward price pressure. Declining share prices often correlate with market perception of diminishing business fundamentals or increased operational risk. The company faces the dual challenge of both addressing these underlying business concerns while simultaneously working to regain technical compliance with listing requirements.

Atlanta, GA, July 15, 2025 (GLOBE NEWSWIRE) -- ScanTech AI Systems Inc. (the “Company” or “ScanTech AI”) (Nasdaq: STAI), a leading innovator in advanced security screening technologies, today announced that the Company received a letter from the staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”), indicating that for the 30 consecutive business days for the period of May 23, 2025 to July 8, 2025, the closing bid price of the Company’s common stock has been below the minimum $1.00 per share requirement set forth in Nasdaq Listing Rule 5450(a)(1). This notice has no immediate effect on the listing or trading of the Company’s common stock on Nasdaq.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided a compliance period of 180 calendar days, or until January 6, 2026, to regain compliance with the minimum bid price requirement. If at any time during this 180-day period, the closing bid price of the Company’s common stock is at least $1.00 per share for a minimum of 10 consecutive business days, Nasdaq stated that it will provide the Company with written confirmation of compliance and the matter will be closed.

In the event the Company does not regain compliance by January 6, 2026, the Company may be eligible for additional time, provided that it submits an application to transfer its listing to The Nasdaq Capital Market and pays the associated fee and it meets the continued listing requirement for market value of publicly held shares and all other initial listing standards (with the exception of the minimum bid price requirement). In such case, the Company will need to provide written notice of its intention to cure the deficiency during the second compliance period, which may include by effecting a reverse stock split if necessary. There can be no assurance that the Company will be able to regain compliance with Nasdaq’s bid price requirement.

About ScanTech AI

ScanTech AI Systems Inc. (Nasdaq: STAI) has developed one of the world’s most advanced non-intrusive ‘fixed-gantry’ CT screening technologies. Utilizing proprietary artificial intelligence and machine learning capabilities, ScanTech AI’s state-of-the-art scanners accurately and quickly detect hazardous materials and contraband. Engineered to automatically locate, discriminate, and identify threat materials and items of interest, ScanTech AI’s solutions are designed for use in airports, seaports, borders, embassies, corporate headquarters, government and commercial buildings, factories, processing plants, and other facilities where security is a priority.

For more information, visit www.scantechais.com and investor.scantechais.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the U.S. Securities Exchange Act of 1934, as amended (“Exchange Act”), including statements regarding ScanTech AI’s management team’s expectations, hopes, beliefs, intentions, plans, prospects or strategies regarding the future, including Nasdaq compliance or noncompliance, possible business combinations, revenue growth and financial performance, product expansion and services. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Additionally, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on the current expectations and beliefs made by the management of ScanTech AI, in light of their respective experience and their perception of historical trends, current conditions and expected future developments and their potential effect on ScanTech AI, as well as other factors they believe are appropriate under the circumstances. There can be no assurance that future developments affecting ScanTech AI will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including product and service acceptance, regulatory oversights, research and development success, and that ScanTech AI will have sufficient capital to operate as anticipated. Should one or more of these risks of uncertainties materialize, or should any of the assumptions of ScanTech AI prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the filings of ScanTech AI (and its predecessor, Mars) with the U.S. Securities and Exchange Commission (the “SEC”), and in the current and periodic reports filed or furnished by ScanTech AI (and its predecessor, Mars) from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on the information available to ScanTech AI as of the date hereof, and ScanTech AI assumes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may otherwise be required under applicable securities laws.

Contact:
ScanTech AI Systems Inc.
James White, CFO
jwhite@scantechibs.com

Investor & Media Relations Contact:
International Elite Capital Inc.
Annabelle Zhang
+1(646) 866-7928
annabelle@iecapitalusa.com

FAQ

Why did ScanTech AI (STAI) receive a Nasdaq deficiency notice?

ScanTech AI received the notice because its stock price traded below $1.00 per share for 30 consecutive business days from May 23, 2025 to July 8, 2025, violating Nasdaq's minimum bid price requirement.

What happens if STAI stock doesn't meet Nasdaq's minimum price requirement by January 6, 2026?

If STAI fails to meet the requirement, it may be eligible to transfer to the Nasdaq Capital Market and receive additional time to comply, potentially through a reverse stock split.

How can ScanTech AI (STAI) regain Nasdaq compliance?

STAI can regain compliance if its stock maintains a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days before January 6, 2026.

Will ScanTech AI (STAI) be immediately delisted from Nasdaq?

No, the deficiency notice has no immediate effect on STAI's listing. The company has until January 6, 2026 to regain compliance with the minimum bid price requirement.

What options does ScanTech AI have to maintain its Nasdaq listing?

STAI can either achieve the $1.00 minimum bid price naturally, transfer to the Nasdaq Capital Market for additional time, or implement a reverse stock split to increase its share price.