Society Pass retains Nasdaq listing with compliance plan

Published 14/04/2025, 14:06
Society Pass retains Nasdaq listing with compliance plan

Society Pass Incorporated, a Nevada-based business services provider, has been granted an extension by The Nasdaq Stock Market LLC to regain compliance with its listing rules. The company, which faced delisting due to non-compliance with the minimum stockholders’ equity requirement, presented a compliance plan that was accepted by Nasdaq’s Hearings Panel.

On February 18, 2025, Society Pass received a notice from Nasdaq indicating that the company did not meet the stockholders’ equity threshold of $2.5 million as required by Rule 5550(b)(2). Failure to comply with this rule resulted in a decision to delist Society Pass’ common stock from the Nasdaq Capital Market effective February 27, 2025. The company requested an appeal and a hearing was held on April 1, 2025. InvestingPro analysis reveals the company is quickly burning through cash, with revenue declining by 24.44% and a concerning current ratio of 0.62.

Following the hearing, the Panel decided on April 9, 2025, to allow Society Pass to continue its listing on Nasdaq, granting an exception until June 30, 2025, to meet the Equity Rule. The extension is contingent upon the company filing a Form 8-K detailing the transactions it has undertaken to achieve and demonstrate long-term compliance with the Equity Rule. The company must also show evidence of its stockholders’ equity following these transactions and confirm compliance with all other criteria for continued listing on the Nasdaq Capital Market.

Society Pass’ CEO, Raynauld Liang, signed off on the report dated today, which outlines the company’s current situation and its plans to maintain its listing status. This report is based on a press release statement filed with the SEC.

In other recent news, Society Pass Incorporated has been notified by The Nasdaq Stock Market LLC regarding a potential delisting due to not meeting the required stockholders’ equity of $2.5 million. In an effort to address this, the company has requested a hearing with the Nasdaq Hearings Panel, temporarily halting the delisting process. Society Pass is actively working to increase its equity by pursuing initial public offerings for its subsidiaries, NUSATRIP Incorporated and Thoughtful Media Group Incorporated, which could add $20 million to its equity. Additionally, an at-the-market offering is projected to raise another $500,000. Despite these efforts, there is no certainty that Society Pass will meet the listing requirements within the potential extension period. In another development, Society Pass has amended its sales agreement with Ascendiant Capital Markets, LLC, allowing for an increased sale of common stock up to $3.37 million. This amendment aims to bolster the company’s capital through share sales, as disclosed in a recent SEC filing. These developments highlight Society Pass’s ongoing efforts to stabilize its financial standing and maintain its Nasdaq listing.

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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