Zentek Ltd. Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Zentek Ltd. (Nasdaq: ZTEK) has received notification from Nasdaq that it is not compliant with the minimum bid price requirement, as its shares have traded below US$1.00 for 31 consecutive business days. The company has until February 23, 2026 to regain compliance by maintaining a closing bid price of at least US$1.00 for 10 consecutive business days.

If Zentek fails to meet this deadline, it may be eligible for an additional 180-day grace period if it meets other listing requirements and provides written notice to Nasdaq. The notification is not an immediate delisting notice, and the company's shares continue to trade on the Nasdaq Capital Market while management explores options to regain compliance.

Positive

• Company remains eligible to trade on Nasdaq during compliance period
• Potential for additional 180-day grace period if initial deadline is not met
• Business operations remain unaffected by the notification

Negative

• Stock price has fallen below US$1.00 minimum requirement
• Risk of potential delisting from Nasdaq if compliance is not achieved
• May need to consider reverse stock split to maintain listing

Insights

Financial Regulatory Expert

Zentek faces Nasdaq delisting risk after share price fell below $1; has until February 2026 to regain compliance.

Zentek has received a Nasdaq notification regarding minimum bid price deficiency, a significant regulatory development that puts the company at risk of eventual delisting if not addressed. The company's shares have traded below the required $1.00 threshold for 31 consecutive business days, triggering this compliance issue.

The company now enters a standard 180-day compliance period ending February 23, 2026, during which it must achieve a closing bid price above $1.00 for at least ten consecutive business days. If unsuccessful, Zentek may qualify for a second 180-day grace period if it meets other Nasdaq Capital Market listing requirements and demonstrates intent to resolve the deficiency - potentially through a reverse stock split.

This notification represents a serious challenge for Zentek, as sustained low share prices often reflect deeper market concerns about a company's financial health or growth prospects. While management has indicated they will "consider all available options" to regain compliance, the most common remedies include reverse stock splits (which mathematically increase share price but don't change fundamental valuation) or improving business performance to attract investor interest.

The notification doesn't immediately affect Zentek's listing status, but failure to address this deficiency could eventually lead to delisting, which would significantly impact liquidity, institutional investment eligibility, and overall market perception. Companies receiving such notifications frequently experience additional selling pressure as some investors avoid stocks with delisting risks.

Guelph, Ontario--(Newsfile Corp. - August 27, 2025) - Zentek Ltd. (Nasdaq: ZTEK) (TSXV: ZEN) ("Zentek" or the "Company") announces that on August 26, 2025, it received a written notification (the "Notification Letter") from the Nasdaq Stock Market LLC ("Nasdaq") that the Company is not in compliance with Nasdaq Listing Rule 5550(a)(2), as the minimum bid price of the Company's common shares ("Shares") has been below US $1.00 per share for 31 consecutive business days.

The Notification Letter is only a notification of deficiency and not a notice of delisting. As such, the Notification Letter has no immediate effect on the listing or trading of the Company's Shares on the Nasdaq Capital Market under the symbol "ZTEK."

Nasdaq Listing Rules

Nasdaq Listing Rule 5550(a)(2) requires securities listed on the Nasdaq Capital Market to maintain a minimum bid price of US$1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company's Shares for the 30 consecutive business days from July 14, 2025, to August 25, 2025, the Company has not met the minimum bid price requirement.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), Zentek has a period of 180 calendar days, or until February 23, 2026, in which to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Company's Shares must meet or exceed US $1.00 for at least ten consecutive business days during this 180-calendar day period. In the event Zentek does not regain compliance by February 23, 2026, the Company may be eligible for an additional 180 calendar day grace period if it meets the continued listing requirement for market value of publicly held shares (US $1 million) and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price and provides written notice to Nasdaq of its intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary. If it appears to Nasdaq that Zentek will not be able to cure the deficiency, or if Zentek is not otherwise eligible for additional time to regain compliance, Zentek's Shares will be subject to delisting by Nasdaq. Zentek may still appeal Nasdaq's determination to delist its Shares, and during any appeal process, Zentek's Shares would continue to trade on the Nasdaq Capital Market.

Zentek's management intends to actively monitor the bid price for its Shares and will consider all available options to regain compliance with the Nasdaq minimum bid price requirement.

The Company's business operations are not affected by the receipt of the Notification Letter.

About Zentek Ltd.

Zentek is an ISO 13485:2016 certified intellectual property technology company focused on the research, development and commercialization of novel products seeking to give the Company's commercial partners a competitive advantage by making their products better, safer, and greener.

Zentek's patented technology platform ZenGUARD™, is shown to have 99-per-cent anti-microbial activity and to significantly increase the viral filtration efficiency for surgical masks and aims to do the same for HVAC (heating, ventilation, and air conditioning) systems. Zentek's ZenGUARD™ production facility is located in Guelph, Ontario.

Zentek, through its wholly owned subsidiary, Triera Biosciences Ltd., has a global exclusive licence to the aptamer-based platform technology developed by McMaster University, which is being jointly developed by Zentek and McMaster for both the diagnostic and therapeutic markets.

For further information on Zentek:
investorrelations@zentek.com

Ryan Shacklock
Senior VP, Strategy & Business Development
Email: rshacklock@zentek.com
Phone: 306-270-9610

To find out more about Zentek, please visit our website at www.Zentek.com. A copy of this news release and all material documents in respect of the Company may be obtained on Zentek's SEDAR+ profile at http://www.sedarplus.ca/.

Forward-Looking Statements

This news release contains forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although Zentek believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Zentek disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264162

FAQ

What is the minimum stock price requirement for Zentek (ZTEK) to maintain Nasdaq listing?

Zentek must maintain a minimum bid price of US$1.00 per share to comply with Nasdaq Listing Rule 5550(a)(2).

When is the deadline for Zentek (ZTEK) to regain Nasdaq compliance?

Zentek has until February 23, 2026 to regain compliance by maintaining a closing bid price above US$1.00 for at least 10 consecutive business days.

What happens if Zentek (ZTEK) fails to meet the Nasdaq compliance deadline?

If Zentek doesn't comply by February 23, 2026, it may be eligible for an additional 180-day grace period if it meets other listing requirements, or face potential delisting.

How can Zentek (ZTEK) regain Nasdaq compliance?

Zentek must maintain a closing bid price of US$1.00 or higher for at least 10 consecutive business days. If necessary, the company may consider a reverse stock split.

Is Zentek (ZTEK) being delisted from Nasdaq immediately?

No, this is only a notification of deficiency, not a delisting notice. Zentek's shares continue to trade on Nasdaq under the symbol ZTEK while the company works to regain compliance.