Nasdaq Notification Regarding Minimum Bid Price Requirement and Minimum Market Value of Listed Securities

Rhea-AI Summary

Trident Digital Tech Holdings (NASDAQ: TDTH) has received two notification letters from Nasdaq regarding listing compliance issues. The first notification, dated May 13, 2025, indicates that TDTH's share price has been below $1.00 for 32 consecutive business days, violating the minimum bid price requirement. The second notification concerns the company's market value of listed securities (MVLS) falling below the required $35 million threshold.

For both issues, TDTH has until November 10, 2025, to regain compliance. The company must maintain a closing bid price of at least $1.00 for 10 consecutive business days and an MVLS exceeding $35 million for 10 consecutive business days. If unsuccessful, TDTH may be eligible for an additional 180-day grace period for the bid price requirement, while failing to meet MVLS requirements could result in delisting proceedings.

Positive

• No immediate effect on stock listing status
• Company has 180 days until November 10, 2025 to resolve both compliance issues
• Possibility of additional 180-day extension for minimum bid price requirement

Negative

• Stock price has remained below $1.00 for 32 consecutive business days
• Market value of listed securities (MVLS) below required $35 million minimum
• Risk of potential delisting if compliance is not achieved
• May need to implement reverse stock split to meet requirements

Insights

Securities Listing Expert

TDTH faces potential Nasdaq delisting due to both stock price and market value deficiencies, creating significant investor risk.

Trident Digital (TDTH) has received dual non-compliance notifications from Nasdaq, putting the company at serious risk of delisting if corrective actions aren't taken promptly. The company faces two distinct compliance issues: its share price has remained below $1.00 for 32 consecutive trading days, and its market value of listed securities (MVLS) has fallen below the required $35,000,000 threshold for 31 consecutive sessions.

Both deficiencies carry identical compliance deadlines of November 10, 2025, giving management approximately 180 days to remedy these issues. For the price deficiency, TDTH must maintain a closing bid above $1.00 for at least 10 consecutive trading days. Similarly, for the MVLS issue, the company must sustain a market value exceeding $35,000,000 for the same duration.

While these notifications don't trigger immediate delisting, they represent a clear early warning signal of financial distress. Companies receiving dual non-compliance notices face significantly higher hurdles to regain compliance compared to those with single deficiencies. The concurrent price and valuation problems suggest fundamental market concerns about TDTH's business model or financial health rather than temporary market fluctuations.

Should TDTH fail to regain compliance by the November deadline, it may receive a second 180-day grace period for the price issue, but only if it meets all other Nasdaq Capital Market listing standards. A reverse stock split is one potential remedy explicitly mentioned for the price deficiency, though this wouldn't address the underlying market valuation concerns. The company hasn't outlined specific strategic initiatives to address these compliance issues beyond monitoring the situation.

Nasdaq Notification Regarding Minimum Bid Price Requirement

SINGAPORE, May 19, 2025 (GLOBE NEWSWIRE) -- Trident Digital Tech Holdings Ltd (“Trident” or the “Company,” NASDAQ: TDTH), a leading catalyst for digital transformation in technology optimization services and Web 3.0 activation based in Singapore, has received a notification letter, dated May 13, 2025, from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that the minimum bid price per share of its securities was below $1.00 for a period of 32 consecutive business days and that the Company did not meet the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”).

The notification letter has no immediate effect on the listing of the Company’s securities, and the Company’s securities continue to trade on Nasdaq under the symbol “TDTH”.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of one hundred eighty (180) calendar days, or until November 10, 2025 (the “Compliance Period”), to regain compliance with Nasdaq’s Minimum Bid Price Requirement. If at any time during the Compliance Period, the closing bid price per share of the Company’s securities is at least $1.00 for a minimum of ten (10) consecutive business days, Nasdaq will provide the Company a written confirmation of compliance and the matter will be closed.

In the event the Company does not regain compliance by November 10, 2025, the Company may be eligible for an additional 180 calendar day grace period. To qualify, 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 bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, including by effecting a reverse stock split, if necessary.

The Company intends to monitor the closing bid price of its securities and will consider its options in order to regain compliance with the Minimum Bid Price Requirement.

Nasdaq Notification Regarding Minimum Market Value of Listed Securities

On May 13, 2025, the Company received a letter from Nasdaq indicating that, based upon the Company’s market value of listed securities (“MVLS”) for the 31 consecutive business day period from March 28, 2025 through May 12, 2025, the Company did not maintain the minimum MVLS of US$35,000,000 required for continued listing on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(b)(2). The Company will be afforded a period of 180 calendar days, or until November 10, 2025 (the “MVLS Compliance Period”), in which to regain compliance pursuant to Nasdaq Listing Rule 5810(c)(3)(C).

In order to regain compliance with Nasdaq’s minimum MVLS requirement, the minimum MVLS of the Company must meet or exceed US$35,000,000 for a minimum of ten consecutive business days during the MVLS Compliance Period. In the event the Company does not regain compliance by the end of the MVLS Compliance Period, the Company will receive written notification that its securities are subject to delisting, which the Company may appeal to a hearings panel.

The Company intends to continue to monitor its MVLS between now and November 10, 2025, and will consider the various options available to the Company if its listed securities do not trade at a level that is likely to regain compliance. There can be no assurance that the Company will be able to regain compliance with the MVLS requirement or maintain compliance with any of the other Nasdaq Capital Market continued listing requirements.

The foregoing letter has no immediate effect on the listing of the Company’s securities, which will continue to be listed and traded on Nasdaq under the symbol “TDTH”, subject to the Company’s compliance with the other continued listing requirements of the Nasdaq Capital Market.

About Trident

Trident is a leading catalyst for digital transformation in digital optimization, technology services, and Web 3.0 activation worldwide, based in Singapore. The Company offers commercial and technological digital solutions designed to optimize its clients’ experience with their end-users by promoting digital adoption and self-service.

Tridentity, the Company’s flagship product, is an innovative and highly secure blockchain-based identity solution designed to provide secure single sign-on authentication capabilities to integrated third-party systems across various industries. Tridentity aims to offer unparalleled security features, ensuring the protection of sensitive information and preventing potential threats, thus promising a new secure era in the global digital landscape in general, and in South Asia etc.

Beyond Tridentity, the Company’s mission is to become the global leader in Web 3.0 activation, notably connecting businesses to a reliable and secure technological platform, with tailored and optimized customer experiences.

Safe Harbor Statement

This announcement contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in announcements and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s strategies, future business development, and financial condition and results of operations; the expected growth of the digital solutions market; the political, economic, social and legal developments in the jurisdictions that the Company operates in or in which the Company intends to expand its business and operations; the Company’s ability to maintain and enhance its brand. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For Investor/Media Enquiries

Investor Relations
Robin Yang, Partner
ICR, LLC
Email: investor@tridentity.me
Phone: +1 (212) 321-0602

FAQ

What compliance issues is TDTH facing with Nasdaq?

TDTH is facing two compliance issues: its stock price has been below $1.00 for 32 consecutive business days, and its market value of listed securities (MVLS) has fallen below the required $35 million minimum threshold.

When does TDTH need to regain Nasdaq compliance by?

TDTH has until November 10, 2025 to regain compliance with both the minimum bid price and MVLS requirements.

What must TDTH do to regain Nasdaq compliance?

TDTH must maintain a closing bid price of at least $1.00 for 10 consecutive business days and an MVLS exceeding $35 million for 10 consecutive business days.

Will TDTH be immediately delisted from Nasdaq?

No, the notifications have no immediate effect on TDTH's listing status. The company continues to trade on Nasdaq while working to meet compliance requirements.

What happens if TDTH fails to meet the November 10, 2025 deadline?

For the bid price requirement, TDTH may be eligible for an additional 180-day grace period. For MVLS non-compliance, the company would receive a delisting notice, which it can appeal to a hearings panel.