#Japan #Tokyo #PicoCELA #Wireless Mesh #Oshio Shōji

PicoCELA Inc. Receives Nasdaq Notification Regarding Minimum Bid Price Deficiency

On April 22, 2025, PicoCELA Inc., a Tokyo-based company specializing in enterprise wireless mesh solutions, received an official letter from the Listings Qualifications Department of the Nasdaq Stock Market. This letter informed PicoCELA that it had fallen short of the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) for continued listing on the Nasdaq. This notification, while serious, does not currently threaten the company's listing status on the Nasdaq Capital Market.

Understanding the Situation

According to Nasdaq Listing Rule 5550(a)(2), companies must maintain a minimum bid price of at least $1.00 per share for their stocks. Further, under Rule 5810(c)(3)(A), if a company fails to meet this price requirement for 30 consecutive business days, it is considered non-compliant. The letter received by PicoCELA indicates that this deficiency has been identified based on the closing bid price of its American Depositary Shares (ADSs) from March 10, 2025, to April 21, 2025.

Despite this warning, the Notification Letter specifically states that it does not affect the company's listing at this time. Additionally, PicoCELA has been granted a grace period of 180 calendar days, extending until October 20, 2025, to comply with the minimum bid price rule by ensuring its ADSs close at or above the required $1.00 for a minimum of ten consecutive business days.

Next Steps for Compliance

To regain compliance, PicoCELA has several options. The company may consider strategic solutions such as a reverse stock split, which is a move often employed to adjust share prices in order to meet specified listing requirements. However, any such action must be executed no later than ten business days prior to the end of the grace period, which gives the company until early October to implement necessary changes if it chooses this route.

While facing this challenge, it is important to note that PicoCELA's core operations remain unaffected. The company is committed to monitoring its share price closely and exploring various strategies aimed at regaining compliance in a timely manner.

About PicoCELA Inc.

PicoCELA specializes in enterprise wireless mesh communication solutions, featuring products that allow for scalable and flexible Wi-Fi network deployment. Their proprietary technology, the PicoCELA Backhaul Engine, significantly reduces the necessity for extensive cabling, simplifying installations in diverse environments. Furthermore, the company also provides a cloud portal service known as PicoManager. This service allows users to track network connectivity and manage data traffic, which is critical in today’s digital landscape.

PicoCELA's leadership is optimistic about navigating these temporary hurdles, focusing on sustaining growth and continuing to innovate within the wireless technology sector. The aim is to enhance both operational capabilities and shareholder value as the company works towards meeting Nasdaq's listing standards.

In conclusion, while PicoCELA Inc. has received a notification regarding its minimum bid price deficiency, the company appears poised to address these challenges head-on, without interrupting its operations or strategic objectives.