DIH receives additional delisting notice from Nasdaq over bid price rule

NORWELL, Mass. - DIH Holding US, Inc. (NASDAQ:DHAI), a rehabilitation technology provider whose stock has plummeted 86% year-to-date according to InvestingPro data, has received an additional delisting notice from Nasdaq for failing to comply with the exchange’s minimum bid price requirement, the company announced Thursday.

The company was notified on September 12 that it had not regained compliance with Nasdaq Listing Rule 5450(b)(2)(A), which requires companies to maintain a minimum bid price of $1.00 per share. DIH’s stock, currently trading at $0.21 and down over 90% in the past year, had closed below this threshold for 30 consecutive business days prior to the initial notice on March 11.

Despite being granted a 180-day compliance period that ended September 8, the company failed to meet the requirement, triggering the additional delisting basis.

This marks the latest compliance issue for DIH, which was previously cited for violations related to market value of listed securities and financial reporting requirements.

The company, with a market capitalization of just $10 million and revenue of $69.57 million in the last twelve months, has requested a hearing before the Nasdaq Hearing Panel, which has temporarily stayed any suspension of its stock for 15 days. DIH is also seeking an extended stay pending the hearing.

At the hearing, DIH plans to present its compliance strategy and request additional time. The panel has authority to grant extensions of up to 180 days from the delisting determination for certain violations.

DIH, which provides robotic devices for physical rehabilitation, stated it is "considering all options" to regain compliance but acknowledged there is no guarantee the panel will grant its request or that the company will meet requirements within any extension period. InvestingPro analysis reveals concerning liquidity metrics, with short-term obligations exceeding liquid assets and a current ratio of 0.51. Subscribers can access additional financial health indicators and 5 more exclusive ProTips for DHAI.

The information is based on a company press release statement.

In other recent news, DIH Holding US, Inc. has made several strategic appointments to its leadership and advisory teams. Barrett Mooney, Ph.D., has joined the Board of Directors, bringing his experience in growing manufacturing businesses and leadership roles in aerospace and defense. Scott R. Burell, with a background in healthcare finance, has also been appointed to the Board, enhancing the company’s financial oversight capabilities. Dennis Streppa has been named to the Board and will serve as the Audit Committee Chair, leveraging his experience in global operations and M&A at Cardinal Health. Additionally, DIH has added Professor Nick Ward, a stroke rehabilitation expert, to its Scientific Advisory Board, aiming to bolster its expertise in neurorehabilitation. Meanwhile, the company faces a challenge as it received a notice from the Nasdaq Stock Market for failing to meet the $50 million market value requirement, with plans to appeal the decision. These developments reflect DIH’s efforts to strengthen its governance and scientific advisory capabilities amidst ongoing challenges.

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