PicoCELA faces Nasdaq minimum bid price noncompliance

Published 24/04/2025, 22:06
PicoCELA faces Nasdaq minimum bid price noncompliance

TOKYO - PicoCELA Inc. (Nasdaq: PCLA), a Tokyo-based enterprise wireless mesh solutions provider with a market capitalization of $14.61 million, has been notified by the Nasdaq Stock Market LLC of its noncompliance with the minimum bid price requirement for continued listing. The company received the notification letter on April 22, 2025, after its American Depositary Shares (ADSs) closed below the required US$1.00 per share for 30 consecutive business days from March 10, 2025, to April 21, 2025. The stock currently trades at $0.63, down nearly 80% over the past year according to InvestingPro data.

Despite the notice, PicoCELA’s listing on the Nasdaq Capital Market remains unaffected at present. The company has until October 20, 2025, to meet the minimum bid price rule, which necessitates a closing bid price of at least US$1.00 for a minimum of 10 consecutive business days. PicoCELA may consider a reverse stock split among other measures to regain compliance. InvestingPro analysis reveals 10+ additional insights about PCLA’s financial health and valuation status, helping investors make informed decisions during this critical period.

The notification does not influence the company’s operations, and PicoCELA plans to monitor its ADSs’ closing bid price closely. While the company may implement strategies, including a reverse share split, to fulfill Nasdaq’s requirements, its financial fundamentals show a current ratio of 2.18 and revenue growth of 40.19% in the last twelve months.

PicoCELA specializes in wireless mesh Wi-Fi access point devices, offering a patented wireless mesh communication technology software, PicoCELA Backhaul Engine, that reduces the need for extensive LAN cabling. Additionally, PicoCELA provides PicoManager, a cloud portal service for monitoring connectivity and managing edge-computing software installations. The company maintains a moderate debt level with a debt-to-equity ratio of 1.57, according to InvestingPro data.

The company’s forward-looking statements in the press release are subject to various risks and uncertainties, and there is no assurance that the company will achieve the anticipated results. The information reported is based on a press release statement from PicoCELA Inc. and complementary financial analysis from InvestingPro.

In other recent news, PicoCELA Inc. reported an increase in revenue and a reduction in net loss for the fiscal year ending September 30, 2024. The company’s financial performance was disclosed in a Form 6-K filed with the Securities and Exchange Commission. This report highlights a significant rise in revenue compared to the previous fiscal year, suggesting a rebound in sales operations. Additionally, PicoCELA managed to narrow its net loss, indicating improvements in cost management and operational efficiency. The filing, signed by CEO Hiroshi Furukawa, complies with SEC regulations but does not detail specific strategies behind the improved results. No forward-looking statements or future projections were included in the report. Investors may interpret the revenue increase and decreased net loss as positive indicators of PicoCELA’s financial health. However, the filing refrained from providing insights into the factors driving these results. The report is part of PicoCELA’s regular disclosure obligations as a foreign private issuer.

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