Modivcare to be delisted from Nasdaq following Chapter 11 filing

DENVER - Modivcare Inc. (NASDAQ:MODV), whose stock has plummeted 97.8% over the past year and currently trades at $1.07, will be delisted from the Nasdaq Stock Market following its Chapter 11 bankruptcy filing on August 20, 2025, according to a notification the healthcare services company received on August 21. InvestingPro data shows the company has been struggling with a substantial $1.4 billion debt burden and rapid cash burn.

The Nasdaq Listing Qualifications Department informed Modivcare that trading of its common stock will be suspended at market open on August 28. The company does not plan to appeal the decision.

Modivcare expects its shares will transition to the OTC Pink Market after delisting, though it cannot guarantee trading will continue on this alternative platform.

The delisting decision follows Modivcare’s voluntary Chapter 11 filing and a separate Nasdaq notice regarding the company’s failure to timely file its quarterly report for the period ended June 30, 2025.

According to a press release statement, Modivcare intends to implement a "comprehensive restructuring transaction" through expedited bankruptcy proceedings to reduce debt and inject capital. The company noted that a "supermajority" of its key stakeholders support this restructuring plan.

Modivcare stated that all its service lines are expected to continue operating normally during the bankruptcy process, with no anticipated interruption to care services. The technology-enabled healthcare company provides non-emergency medical transportation, personal care services, and in-home monitoring solutions.

The company cautioned investors that trading in its securities during the Chapter 11 proceedings is "highly speculative and poses substantial risks," adding that trading prices may bear little relationship to any actual recovery by shareholders.

In other recent news, Modivcare has filed for Chapter 11 bankruptcy protection, aiming to restructure its finances. This move is expected to reduce the company’s total funded debt by approximately $1.1 billion. The announcement led to a significant drop in Modivcare’s shares, reflecting investor concerns over the financial restructuring. Additionally, Modivcare has regained compliance with Nasdaq’s listing requirements. The company confirmed it met the minimum market value of publicly held shares threshold of $15 million for at least 20 consecutive business days. This development is crucial for Modivcare to maintain its listing on The Nasdaq Global Select Market. The company continues to navigate its financial challenges while ensuring compliance with stock market regulations.

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