DIH Holding faces potential Nasdaq delisting over market value

Published 07/04/2025, 11:42
DIH Holding faces potential Nasdaq delisting over market value

DIH Holding US, Inc., a medical device company, has been notified by Nasdaq of non-compliance with the exchange’s minimum Market Value of Publicly Held Shares (MVPHS) requirement, putting its listing at risk. The company’s shares have fallen over 86% year-to-date, with its current market capitalization at just $7.5 million. On Monday, the company disclosed that it received a notice from Nasdaq on April 4, 2025, stating that for the past 39 consecutive business days, its MVPHS had fallen below the required $15 million threshold.

The company, traded under the ticker DHAI on The Nasdaq Global Market, has been granted a 180-day period until October 1, 2025, to regain compliance. Trading at $0.18 per share with a beta of -0.16, indicating movement typically opposite to the market, DIH Holding’s stock will continue to be listed and traded on Nasdaq. InvestingPro analysis shows the company maintains a FAIR financial health score despite current challenges.

To meet Nasdaq’s standards again, DIH Holding must maintain an MVPHS of at least $15 million for a minimum of ten consecutive business days within the given timeframe. If the company fails to comply by October 1, 2025, or if Nasdaq believes that it will not be able to cure the deficiency, DIH Holding may face delisting.

The company has stated its intention to monitor its MVPHS and explore options to regain compliance, although it has cautioned that there is no guarantee of achieving this goal.

This development comes as DIH Holding, formerly known as Aurora Technology Acquisition Corp. before a name change on September 17, 2021, navigates the challenges of maintaining its market value in a competitive industry. With a concerning current ratio of 0.51, the company faces significant liquidity challenges. The information in this article is based on a press release statement and InvestingPro data, which offers 12 additional investment tips for DHAI.

In other recent news, DIH Holding US, Inc. has announced the completion of a public offering, raising approximately $3.9 million after fees and expenses. The offering included 5,937,100 common units at $0.7832 each, with each unit comprising one share of Class A common stock and one Class A warrant. The proceeds are earmarked for capital expenditures, working capital, and general corporate purposes. Additionally, DIH Holding is facing a Nasdaq delisting notice due to a shortfall in its Minimum Value of Listed Securities, with a deadline set for September 1, 2025, to regain compliance.

The company has also expanded its strategic partnership with Zahrawi Group to include Saudi Arabia, enhancing the distribution of its rehabilitation solutions in the region. In corporate governance news, DIH Holding reported the resignations of Dr. Patrick Bruno from its Board of Directors and executive roles, and Cathryn Chen from the Board, with no immediate plans for replacements. Dr. Bruno’s resignation was formalized through a Termination Agreement due to policy violations, while Chen’s departure was attributed to external work commitments.

These developments highlight DIH Holding’s ongoing efforts to navigate financial and strategic challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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