Nasdaq Sends Shockwave to Mobile-health Network Solutions: What's Next for MNDR?

SINGAPORE, Sept. 20, 2024 (GLOBE NEWSWIRE) -- Mobile-health Network Solutions (Nasdaq: MNDR) ("MaNaDr" or "the Company"), a leading Asia-Pacific telehealth provider, today announced that it received a notice dated September 18, 2024, from the Listings Qualifications Department (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that the minimum bid price per share of its Class A ordinary shares (“Class A Ordinary Shares”) was below $1.00 for a period of 30 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 Rule”).

This notification, while not a delisting notice, is undoubtedly a concerning signal for the shareholders of Mobile-health Network Solutions. For a company that has been a pioneer in telehealth in the Asia-Pacific region, failure to meet the minimum bid price requirement may indicate red flags in its growth prospects or financial health.

According to the notice, Mobile-health Network Solutions has 180 calendar days, or until March 17, 2025, to regain compliance with the Minimum Bid Price Rule. The Company can achieve this by maintaining a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days during this compliance period.

Investors, however, are left wondering how the company intends to turn this situation around. Mobile-health Network Solutions shall be required to provide updates to Nasdaq staff detailing its plan for coming into compliance with the Listing Rule. One potential plan could involve a reverse stock split, although no official indication has been made by the company.

While the Nasdaq notification does not trigger immediate delisting of the Class A Ordinary Shares of Mobile-health Network Solutions, failure to meet the Minimum Bid Price requirement would ultimately lead to removal of the shares from the Nasdaq Stock Market.

The Company's Class A Ordinary Shares will continue to be traded on the Nasdaq Stock Market under the ticker symbol "MNDR".

Management at Mobile-health Network Solutions remains optimistic, yet this news has ignited conversations among investors regarding the long-term sustainability of the company's operations in the telehealth industry.