DT Cloud Star Acquisition (NASDAQ: DTSQ) warned over potential Nasdaq delisting
Rhea-AI Filing Summary
DT Cloud Star Acquisition Corporation reports that on July 15, 2026 Nasdaq Listing Qualifications Staff issued a determination to delist its securities from the Nasdaq Global Market. This follows a January 15, 2026 notice that, based on its Market Value of Listed Securities over November 21, 2025 to January 6, 2026, the company failed the Nasdaq Listing Rule 5450(b)(2)(A) requirement to maintain a minimum MVLS of $50,0000,000. Nasdaq had granted a 180‑day compliance period through July 14, 2026, but the company did not regain compliance.
Nasdaq indicated the securities would be delisted and, absent an appeal request by July 22, 2026, trading would be suspended at the open on July 24, 2026 with a Form 25‑NSE to remove the securities from listing and registration. The company has submitted a timely hearing request, which stays the suspension while the appeal is pending.
Separately, on April 6, 2026 the company was notified it did not meet the minimum 400 total shareholders requirement under Nasdaq Listing Rule 5450(a)(2). An extension to regain compliance was granted until October 5, 2026, but under Listing Rule 5810(C)(4)(d)(2) the company is no longer eligible for that extension, creating an additional independent basis for delisting. DT Cloud Star is a blank check special purpose acquisition company.
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- Nasdaq delisting risk: Staff has issued a determination to delist the company’s securities after failures to meet the $50,0000,000 Market Value of Listed Securities test and the 400 shareholder requirement, putting its Nasdaq Global Market listing in jeopardy despite a stayed suspension pending a hearing.
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8-K Event Classification
2 items: 3.01, 9.01
2 items
Item 3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Securities
The company received a delisting notice or transferred its listing to a different exchange.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Minimum Market Value of Listed Securities: $50,0000,000
MVLS measurement period: November 21, 2025 to January 6, 2026
Compliance period length: 180 calendar days
+4 more
7 metrics
Minimum Market Value of Listed Securities
$50,0000,000
Nasdaq Listing Rule 5450(b)(2)(A) MVLS requirement for continued listing
MVLS measurement period
November 21, 2025 to January 6, 2026
Period Nasdaq used to assess compliance with MVLS requirement
Compliance period length
180 calendar days
Time allowed through July 14, 2026 to regain MVLS compliance
Appeal request deadline
July 22, 2026
Last day to request a hearing to appeal the delisting determination
Potential trading suspension date
July 24, 2026
Date Nasdaq indicated trading would be suspended absent an appeal
Minimum shareholder requirement
400 total shareholders
Nasdaq Listing Rule 5450(a)(2) continued inclusion threshold
Shareholder compliance extension date
October 5, 2026
Extended deadline originally granted to regain the 400 shareholder requirement
Key Terms
Market Value of Listed Securities, Form 25-NSE, blank check company, special purpose acquisition company, +2 more
6 terms
Market Value of Listed Securities financial
"based on its Market Value of Listed Securities (“MVLS”) for the period"
The market value of listed securities is the total worth of stocks, bonds and other tradable instruments quoted on an exchange, measured using the prices investors are willing to pay right now. It’s calculated by multiplying each security’s current market price by the number of units outstanding and adding those amounts together, like totaling the value of every item in a store at today’s prices. Investors watch this because it shows the size, liquidity and overall health of the market or a company’s publicly traded portion, and it influences index weights, fund allocations and perceived risk.
Form 25-NSE regulatory
"a Form 25-NSE will be filed with the Securities and Exchange Commission"
Form 25‑NSE is an official filing used to notify the stock exchange that a company’s securities are being removed from trading on that exchange, similar to handing in a key when a shop closes. Investors care because removal ends public trading on that venue, often cutting liquidity and making it harder to buy or sell shares, which can affect a stock’s price and how quickly investors can access cash or exit positions.
blank check company financial
"The Company is a blank check company, also commonly referred to as a special purpose"
A blank check company is a publicly listed shell that raises money from investors before naming a specific business to buy or merge with, similar to handing a cashier a signed check and asking them to fill in the payee later. It matters to investors because it offers a faster, often cheaper path for private firms to become public, but carries extra risk since returns depend on the organizers’ ability to find a good deal and on limited information about the future business.
special purpose acquisition company financial
"also commonly referred to as a special purpose acquisition company, or SPAC, formed for"
A special purpose acquisition company (SPAC) is a company formed with the sole purpose of raising money through a public offering to buy or merge with an existing private business. It acts like a vehicle that allows private companies to go public more quickly and with less complexity. For investors, it offers an opportunity to invest early in a potential acquisition, though it also carries risks if the intended deal doesn’t materialize.
continued listing requirement regulatory
"no longer met the continued listing requirement of Nasdaq under Listing Rule 5450(b)(2)(A)"
Rules a stock exchange sets that a publicly traded company must follow to keep its shares listed, such as minimum share price, market value, shareholder equity, and timely financial reporting. These rules matter to investors because failing them can lead to removal from the exchange, which can make shares harder to buy or sell and often lowers their value — like a club with membership requirements where losing eligibility restricts access and signals trouble.
Nasdaq Global Market market
"its securities will be delisted from The Nasdaq Global Market"
The Nasdaq Global Market is a section of the stock exchange where larger, well-established companies are listed and publicly traded. It functions like a marketplace where investors can buy and sell shares of these companies, providing them with access to capital and opportunities for growth. Its role is important because it helps investors identify and invest in reputable companies with strong financial backgrounds.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
Why did DT Cloud Star Acquisition Corporation (DTSQ) receive a Nasdaq delisting determination?
Nasdaq staff issued a delisting determination because DT Cloud Star Acquisition Corporation failed to meet key continued listing standards. It did not satisfy the $50,0000,000 Market Value of Listed Securities requirement and also fell short of the minimum 400 total shareholders threshold under Nasdaq rules.
What Nasdaq market value requirement did DTSQ fail to meet?
DT Cloud Star Acquisition Corporation did not meet Nasdaq Listing Rule 5450(b)(2)(A), which requires a minimum Market Value of Listed Securities of $50,0000,000. Nasdaq evaluated this over the period from November 21, 2025 to January 6, 2026 before finding the company non‑compliant.
When could trading in DTSQ securities be suspended on Nasdaq?
Nasdaq indicated trading in DT Cloud Star Acquisition Corporation securities would be suspended at the opening of business on July 24, 2026 if no appeal were requested. The company has submitted a timely hearing request, which currently stays the trading suspension while the appeal is considered.
Has DTSQ appealed Nasdaq’s delisting determination?
DT Cloud Star Acquisition Corporation has submitted a timely hearing request in response to Nasdaq’s July 15, 2026 delisting determination letter. This appeal request stays the previously indicated July 24, 2026 trading suspension while a Nasdaq hearings panel reviews the company’s case.
What type of company is DT Cloud Star Acquisition Corporation (DTSQ)?
DT Cloud Star Acquisition Corporation is a blank check company, also known as a special purpose acquisition company (SPAC). It was formed to complete a merger or similar business combination with one or more businesses in industries that complement its management team’s background.