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TAREN POINT, Australia - Fitell Corporation (NASDAQ:FTEL), an Australian online retailer specializing in gym and fitness equipment currently trading at $0.62 with a market capitalization of $14 million, has been notified by the Nasdaq Stock Market that its share price has fallen below the required minimum for continued listing. According to InvestingPro data, the stock has declined over 92% in the past year, with particularly high price volatility. The company received a letter on April 2, 2025, stating that its shares had closed below the $1.00 threshold for 30 consecutive business days, contravening Nasdaq Listing Rule 5550(a)(2).
Despite this setback, the notification does not immediately impact the trading of Fitell Corporation’s shares on the Nasdaq Capital Market, nor does it influence the company’s business operations or its obligations to the Securities and Exchange Commission (SEC) and other contracts. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 4.22 and holds more cash than debt on its balance sheet, though it remains unprofitable with a negative EBITDA of $9.58 million in the last twelve months.
Fitell Corporation has been granted a 180-day period, ending on September 29, 2025, to regain compliance with the minimum bid price requirement. To achieve this, the company’s shares must maintain a closing bid price of at least $1.00 for a minimum of ten consecutive business days within this timeframe. Nasdaq retains the discretion to extend this period if necessary.
Should the company fail to meet the compliance requirement by the specified deadline, it may be granted an additional 180 days to regain compliance, provided it meets all other initial listing standards, excluding the bid price requirement. Without this extension, Fitell Corporation risks having its securities delisted from the Nasdaq Capital Market.
In response to the notification, Fitell Corporation plans to monitor its share price closely and may contemplate actions such as a reverse stock split to meet the Nasdaq’s minimum bid price rule. While current market prices suggest the stock may be undervalued according to InvestingPro Fair Value calculations, investors should note the company’s weak overall financial health score and negative return on equity of -121%.
Fitell Corporation operates through its wholly owned subsidiary, GD Wellness Pty Ltd, offering a range of gym and fitness equipment under its own brands and others. The company has served over 100,000 customers, with a significant portion of repeat business. Its brands include Muscle Motion, Rapid Motion, and FleetX, featuring over 2,000 stock-keeping units (SKUs). Financial data reveals a gross profit margin of 34% and annual revenue of $4.47 million, though revenue declined by approximately 7% in the last twelve months.
This news is based on a press release statement from Fitell Corporation. The company’s forward-looking statements in the release are speculative and subject to risks and uncertainties that could affect financial results and business strategies. Fitell Corporation has stated it will not update forward-looking statements unless required by law.
In other recent news, Fitell Corporation has announced a registered direct offering expected to generate approximately $10 million in gross proceeds. The transaction involves the sale of nearly 2 million ordinary shares, along with warrants to purchase an equal number of shares, at a price of $5.02 each. These warrants are exercisable immediately and will expire five years from the date of issuance. The offering is scheduled to close on or around February 10, 2025, pending customary closing conditions, with Rodman & Renshaw LLC acting as the exclusive placement agent. The company plans to use the net proceeds primarily for the development and commercial launch of smart fitness equipment, as well as for general corporate purposes and working capital. Additionally, Fitell may allocate a portion of the proceeds for potential acquisitions or investments in complementary businesses and technologies, although no current commitments or agreements exist. This offering is conducted under a shelf registration statement on Form F-3, which was declared effective on February 5, 2025.
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