Yoshiharu secures $1.9 million to meet Nasdaq equity rule

BUENA PARK, Calif. - Yoshiharu Global Co. (NASDAQ:YOSH), a Japanese cuisine restaurant operator with a market capitalization of $24.7 million, has announced securing financing commitments totaling $1.9 million from various investors. According to InvestingPro data, the company faces challenges with short-term obligations exceeding liquid assets, reflected in a current ratio of 0.31. This financing move is aimed at meeting the Nasdaq’s minimum stockholders’ equity requirement for continued listing on the exchange.

The company received a notice from Nasdaq on February 18, 2025, indicating its non-compliance with the Listing Rule 5550(b)(1), which necessitates maintaining a minimum stockholders’ equity of $2.5 million. In response, Yoshiharu reported private placements on Monday, resulting in the sale of 285,600 shares for $714,000 and securities subscription agreements on Tuesday for 480,000 warrants at a purchase price of $1.2 million. Despite these challenges, the stock has shown remarkable performance, with a year-to-date return of 423% and currently trading at $17.15.

James Chae, President, CEO, and Chairman of Yoshiharu, expressed gratitude to their financing partners and shareholders for their support. He emphasized the company’s momentum with new U.S. locations, international partnerships, and expansion into additional cuisine segments. The company has demonstrated strong revenue growth of 26% over the last twelve months, though InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access 8 additional key insights and detailed financial metrics through an InvestingPro subscription.

The recent capital injection positions Yoshiharu to meet the Nasdaq’s equity threshold before the scheduled appeal hearing on April 1, 2025. The company, known for its Japanese ramen, has grown rapidly since its inception in 2016, boasting 15 restaurants across Southern California and Las Vegas.

This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. There is no assurance that Yoshiharu will meet Nasdaq’s continuing listing requirements in the future or that any relief from delisting will be granted. The company’s plans and prospects are subject to various factors, including those described in the company’s SEC filings.

In other recent news, Yoshiharu Global Co. has been notified of a pending delisting from The Nasdaq Capital Market due to non-compliance with the minimum stockholders’ equity requirement of $2,500,000. Despite being granted an extension, the company failed to meet the compliance deadline, prompting the Nasdaq Listing Qualifications Staff to issue a delisting notice. Yoshiharu Global plans to appeal the decision, although there is no assurance of a favorable outcome. Additionally, the company announced the resignation of independent director Jay Kim, who left without citing any disagreements with the company’s operations or policies. This departure leaves a vacancy on the Board of Directors and its committees. In earlier developments, Yoshiharu Global held its annual meeting where stockholders re-elected board members and approved key proposals related to the issuance of common stock. These approvals allow the company to proceed with significant equity transactions, including a Securities Purchase Agreement with Alumni Capital LP. The company’s independent accounting firm, BCRG Group, was also ratified to continue its services for the fiscal year.

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