Lucid files for 1-for-10 reverse stock split requiring shareholder approval
CHANGZHOU CITY, China - Jin Medical International Ltd. (NASDAQ: ZJYL), a China-based medical equipment manufacturer with a market capitalization of $125 million and an 18.5% revenue growth in the last twelve months, has been notified of non-compliance with Nasdaq’s minimum bid price requirement. The company disclosed on Tuesday that it received a deficiency letter from Nasdaq on May 2, 2025, indicating that its ordinary shares had not met the minimum $1.00 bid price over a 30-day period ending May 1, 2025. According to InvestingPro data, the company maintains strong fundamentals with a healthy current ratio of 2.5x.
Despite the notice, Jin Medical’s shares will continue to be listed on The Nasdaq Capital Market as the company enters a 180-day period to regain compliance. To achieve this, the share price must close at or above $1.00 for at least 10 consecutive business days before October 29, 2025. The stock, currently trading at $0.83, has experienced significant volatility, falling 63% over the past six months. InvestingPro analysis reveals 8 additional key insights about ZJYL’s market performance and growth potential. The company may consider a reverse stock split as a measure to address the issue if necessary.
If Jin Medical fails to meet the bid price requirement within the initial timeframe, it may qualify for an additional 180 days provided it meets Nasdaq’s other initial listing standards. However, if Nasdaq determines that the company is unlikely to resolve the deficiency or if it does not meet eligibility criteria, delisting procedures may commence.
Jin Medical, established in 2006, specializes in wheelchairs and living aids for the disabled and elderly, operating two manufacturing plants in Jiangsu Province. The company also plans to open a new facility in Anhui Province and maintains a network of over 40 distributors in China and 20 internationally.
While Jin Medical has expressed its intent to monitor its share price closely and explore options to regain compliance, there is no guarantee that it will achieve compliance within the provided timeframe or maintain compliance with other Nasdaq listing rules. One positive factor is that the company holds more cash than debt on its balance sheet, maintaining financial flexibility during this challenging period. InvestingPro Fair Value analysis suggests the stock is currently trading near its fair value, with a P/E ratio of 33.6x reflecting market expectations for future growth.
This situation underscores the challenges faced by companies in maintaining listing standards on major stock exchanges, which include maintaining a minimum bid price for shares. Jin Medical’s future steps to address this issue will be closely watched by investors and market observers.
The information in this article is based on a press release statement from Jin Medical International Ltd.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.