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Society Pass Incorporated, a Nevada-based business services company with a market capitalization of $13.8 million, has received notice from The Nasdaq Stock Market LLC that its common stock is subject to delisting. The notice, dated February 18, 2025, cites the company’s failure to maintain the minimum required stockholders’ equity of $2.5 million, as stipulated by Nasdaq’s Rule 5550(b)(2). According to InvestingPro analysis, the company currently shows concerning financial health metrics, with a current ratio of 0.62 indicating potential liquidity challenges.
In response to the delisting threat, Society Pass has requested a hearing with the Nasdaq Hearings Panel, which has temporarily halted the delisting process. The company’s stock will continue to trade on the Nasdaq Capital Market during the appeal. InvestingPro data reveals the stock has experienced significant volatility, with a notable 84% gain over the past six months despite recent challenges. Subscribers can access 16 additional ProTips and comprehensive financial analysis to better understand the company’s position.
The company is actively seeking to address the issue by pursuing initial public offerings for its subsidiaries, NUSATRIP Incorporated and Thoughtful Media Group Incorporated, which are expected to contribute an additional $20 million to stockholders’ equity. Furthermore, an at-the-market offering under its existing Registration Statement on Form S-3 is projected to increase equity by another $500,000. The company’s revenue declined by 24.4% in the last twelve months, with an EBITDA of -$10.5 million, highlighting the urgency of these capital-raising initiatives.
Despite these efforts, there is no guarantee that the Panel will allow Society Pass to remain listed or that the company will be able to meet the listing requirements within the potential extension period.
Society Pass also recently faced a challenge with Nasdaq’s minimum bid price requirement but has since regained compliance. From January 31 through February 14, 2025, the company’s stock maintained a closing bid price at or above $1.00 per share, satisfying Nasdaq’s Listing Rule 5550(a)(2).
This information is based on a press release statement filed with the SEC. The outcome of the hearing and the company’s ability to meet Nasdaq’s requirements will determine the future of Society Pass’s listing status.
In other recent news, Society Pass Incorporated has amended its sales agreement with Ascendiant Capital Markets, allowing for an increased sale of common stock up to $3.37 million. This amendment, disclosed in a recent SEC filing, aims to bolster the company’s capital through the sale of shares. The agreement permits Society Pass to offer and sell its common stock from time to time, a standard practice for managing financing and capital structure. Additionally, Society Pass has received a notification from The Nasdaq Stock Market that it is not in compliance with the minimum bid price requirement, as its stock has closed below $1.00 per share for 30 consecutive business days. The company has until June 4, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for ten consecutive business days. Society Pass is considering options, including a reverse stock split, to address this issue. Management has stated there is no assurance of eligibility for additional compliance periods or Nasdaq’s approval for continued listing if delisting becomes imminent. These developments reflect the company’s ongoing efforts to manage its financial and operational challenges.
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