DIH Holding US, Inc. Appeals Against Delisting Decision by Nasdaq
DIH Holding US, Inc. Faces Nasdaq Delisting Challenges
In recent developments, DIH Holding US, Inc. (NASDAQ: DHAI) received a notification from Nasdaq regarding its compliance status. The company, dedicated to improving the lives of individuals with disabilities through innovative solutions, is currently navigating through a crucial phase due to non-compliance issues with Nasdaq standards.
Understanding the Delisting Letter
On September 12, 2025, DIH was informed by the Listing Qualifications Staff of Nasdaq that it had not achieved compliance with Nasdaq Listing Rule 5450(b)(2)(A), commonly referred to as the Bid Price Rule. This regulation mandates that the bid price of a company’s stock should remain above $1.00 per share for a minimum of 30 consecutive business days. DIH's Class A common stock fell below this threshold, triggering this notice.
The Compliance Period
The company was granted a compliance period of 180 days, which set the deadline for DIH to resume compliance by September 8, 2025. However, since the company failed to meet the criteria outlined in the Bid Price Rule, the possibility of delisting became an imminent concern for DIH.
Next Steps Taken by DIH
In response to the notification, DIH has formally requested a hearing before Nasdaq's Hearing Panel. This request momentarily pauses the suspension of its common stock for a period of 15 days. The company also sought an additional stay, hoping to delay any further action until after the hearing, particularly concerning compliance with the Reports Rule.
DIH's Commitment to Recovery
During the upcoming hearing, DIH plans to present a detailed strategy to demonstrate compliance with all relevant Nasdaq listing criteria, not just the Bid Price Rule. They aim to address other aspects such as MVLS Rule and Reports Rule, with the hope of extending the deadline for meeting these requirements.
Options Under Consideration
DIH is currently reviewing various options to regain compliance with the necessary rules. The Hearing Panel has the authority to grant extended timelines of up to 180 days for the MVLS and Bid Price Rules, as well as a potential 360 days if proceeding from an earlier filing delinquency.
The Vision Behind DIH Holding US, Inc.
DIH stands for the vision of "Delivering Inspiration & Health". The company is dedicated to enhancing the lives of individuals living with disabilities and functional impairments by providing advanced rehabilitation devices. These devices play a critical role in enabling intensive, interactive rehabilitation programs that are vital for patients recovering from various physical challenges.
The Importance of Compliance
The stakes are high for DIH, as compliance with Nasdaq listing rules is crucial for the continued operation and growth of the company. The ability to maintain its listing not only plays a significant role in the company’s market visibility but also impacts its capacity to attract investment and attract strategic partnerships essential for future growth.
Potential Implications of Non-Compliance
Failure to regain compliance may have serious implications for the company, including restricted access to capital markets and a diminished ability to fund innovative projects that can improve patients' quality of life through advanced rehabilitation methods.
Investor Relations
For those interested in following DIH's journey or have inquiries regarding the company's direction, Louisa Smith from Investor Relations is available for communication at their listed email address.
Frequently Asked Questions
What action is DIH taking against the delisting?
DIH is requesting a hearing to appeal the delisting decision and presenting a plan to regain compliance.
What is the Bid Price Rule?
The Bid Price Rule requires that a company's stock price must remain above $1.00 for 30 consecutive business days to maintain its Nasdaq listing.
What happens if DIH fails to comply?
If DIH fails to regain compliance, it may face delisting from Nasdaq, impacting its visibility and access to capital.
How long does DIH have to comply with the Nasdaq rules?
DIH was provided a compliance period of 180 days, but it seeks extensions through the hearing process.
Who can I contact for more information about DIH?
You can reach out to Louisa Smith from Investor Relations at the provided email for any inquiries.
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