Jin Medical International Ltd. – Nasdaq Minimum Bid Price Non-Compliance

Rhea-AI Summary

Jin Medical International (NASDAQ: ZJYL) has received a deficiency notice from Nasdaq on May 2, 2025, due to non-compliance with the minimum bid price requirement. The company's stock price remained below $1.00 for 30 consecutive business days between March 20 and May 1, 2025. ZJYL has been granted a 180-day compliance period until October 29, 2025, to regain compliance by maintaining a closing bid price of $1.00 or higher for at least 10 consecutive business days.

If unsuccessful, the company may be eligible for an additional 180-day period, provided it meets other Nasdaq Capital Market listing requirements. Options for compliance include implementing a reverse stock split. Failure to meet requirements could result in delisting from Nasdaq.

Positive

• Granted 180 days until October 29, 2025 to regain compliance
• Possibility of additional 180-day extension if other listing requirements are met
• Multiple options available to regain compliance, including reverse stock split

Negative

• Stock trading below $1.00 for 30 consecutive business days
• Risk of potential delisting from Nasdaq if compliance is not achieved
• May need to implement a dilutive reverse stock split to maintain listing

Insights

Financial Markets Structure Expert

Nasdaq's deficiency notice introduces regulatory risk for Jin Medical but allows standard 180-day remedy period with multiple compliance options.

Jin Medical has received a Nasdaq deficiency notice for failing to maintain the minimum $1 bid price requirement over 30 consecutive trading days. This represents a compliance issue rather than an immediate crisis, as the company has been granted the standard 180-day remediation period until October 29, 2025.

The company has multiple paths to resolve this issue. The simplest would be natural share price appreciation above $1 for at least 10 consecutive trading days. Alternatively, the company may implement a reverse stock split, which would mechanically increase the share price by reducing the number of outstanding shares while maintaining the same market capitalization.

If Jin Medical fails to regain compliance within the initial period, it may be eligible for an additional 180 days if it meets all other Nasdaq Capital Market listing requirements except the bid price. The most severe outcome—delisting to OTC markets—would only occur if compliance isn't achieved during these periods.

Delisting typically has significant negative consequences including reduced liquidity, decreased institutional ownership, loss of analyst coverage, and restricted access to capital markets. However, many companies successfully address these deficiency notices either through improved market perception or corporate actions like reverse splits.

This situation creates regulatory uncertainty but follows a well-established process with clear remediation options and timelines. The deficiency notice itself doesn't immediately impact Jin Medical's operations or current listing status, though it signals that the market has been valuing the company's shares at depressed levels.

Changzhou City, China, May 06, 2025 (GLOBE NEWSWIRE) -- Jin Medical International Ltd. (NASDAQ: ZJYL) (the “Company”) today announced that on May 2, 2025, it received a deficiency letter (the “Notice”) from the Nasdaq Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”). The Notice informed the Company that, based upon the closing bid price of the Company’s ordinary shares (“Ordinary Shares”) over the 30 consecutive business day period between March 20, 2025 and May 1, 2025, the Company is not in compliance with the requirement to maintain a minimum bid price of $1.00 per share of its Ordinary Shares for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”).

The Notice has no immediate effect on the continued listing status of the Ordinary Shares on The Nasdaq Capital Market. The Company has been provided a compliance period of 180 calendar days from the date of the Notice, or until October 29, 2025, to regain compliance pursuant to Nasdaq Listing Rule 5810(c)(3)(A). If at any time before October 29, 2025, the closing bid price of the Ordinary Shares reaches or exceeds $1.00 per share for a minimum of 10 consecutive business days, the Staff will provide written notification that the Company has achieved compliance with the Minimum Bid Price Requirement, and the matter would be resolved. If the Company chooses to implement a reverse stock split, it must complete the split no later than ten business days prior to October 29, 2025, in order to regain compliance.

If the Company does not regain compliance with the Minimum Bid Price Requirement during the initial 180 calendar day period, the Company may be eligible for additional time for compliance.

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, by effecting a reverse stock split, if necessary. If the Company meets these requirements, Nasdaq will inform the Company that it has been granted an additional 180 calendar days. However, if it appears to Staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, Nasdaq will provide notice that its securities will be subject to delisting

The Company intends to actively monitor the closing bid price of the Ordinary Shares and will evaluate available options to regain compliance with the Minimum Bid Price Requirement. However, there can be no assurance that the Company will regain compliance during the initial 180-day compliance period, secure a second compliance period or maintain compliance with the other Nasdaq Listing Rules.

About Jin Medical International Ltd.

Founded in 2006 and headquartered at Changzhou, Jiangsu Province of China, Jin Medical designs, develops, manufactures and markets wheelchairs and living aids products for people with disabilities, elderlies, and for rehabilitation application. Currently, Jin Medical operates two manufacturing plants of approximately 230,000 square feet in the aggregate in Changzhou City and Taizhou City, Jiangsu Province, China. Jin Medical is establishing a new facility with 430,000 square feet at Chuzhou, Anhui Province, China. Jin Medical has more than 40 distributors in China and more than 20 international distributors. The majority of Jin Medical’s wheelchair products, with more than 30 models, are sold to distributors in Japan and China, including Nissin Medical Industries Co., Ltd, one of the largest medical device distributors in Japan. Jin Medical continuously delivers innovative wheelchair products that are both lightweight and ergonomic. For more information, please visit: http://www.zhjmedical.com.

Forward-Looking Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to, the following: the Company’s ability to achieve its goals and strategies, the Company’s future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, import and export restrictions, fluctuations in general economic and business conditions, the Company’s ability to comply with Nasdaq continued listing standards and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission (“SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:
ir@zhjmedical.com

FAQ

Why did ZJYL receive a Nasdaq deficiency notice in May 2025?

ZJYL received a Nasdaq deficiency notice because its stock price traded below the minimum requirement of $1.00 per share for 30 consecutive business days between March 20 and May 1, 2025.

What is the deadline for ZJYL to regain Nasdaq compliance?

ZJYL has until October 29, 2025 (180 days from the notice) to regain compliance by maintaining a closing bid price of $1.00 or higher for at least 10 consecutive business days.

What happens if ZJYL fails to meet the October 2025 deadline?

If ZJYL fails to meet the deadline, it may be eligible for an additional 180-day compliance period if it meets other Nasdaq Capital Market listing requirements. If not, the stock may be subject to delisting.

How can ZJYL regain Nasdaq compliance?

ZJYL can regain compliance by either achieving a closing bid price of $1.00 or higher for 10 consecutive business days, or implementing a reverse stock split before the deadline.