SRM Entertainment Receives Notice from Nasdaq Regarding Minimum Bid Price Non-Compliance

SRM Entertainment, Inc. (NASDAQ: SRM) has recently received a deficiency letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC, notifying the company that it is not currently in compliance with the requirement to maintain a minimum bid price of $1.00 per share for continued listing on The Nasdaq Capital Market.

The deficiency letter, received on October 21, 2024, stated that based on the closing bid price of SRM Entertainment’s common stock for the last 30 consecutive business days, the company has fallen short of the Minimum Bid Requirement as per Nasdaq Listing Rule 5550(a)(2). Despite this notification, the company’s listing on The Nasdaq Capital Market remains fully effective for the time being.

According to Nasdaq Listing Rule 5810(c)(3)(A), SRM Entertainment has been granted a compliance period of 180 calendar days from the date of the Notice, ending on April 21, 2025, to regain compliance with the Minimum Bid Requirement. To meet this requirement, the closing bid price of the common stock must reach or exceed $1.00 per share for at least ten consecutive business days prior to the deadline.

Should the company fail to regain compliance by April 21, 2025, there is a possibility of a second 180 calendar day compliance period. To be eligible for this extension, SRM Entertainment will need to fulfill the continued listing standard for market value of publicly held shares and all other initial listing criteria for The Nasdaq Capital Market, except for the Minimum Bid Price requirement.

SRM Entertainment has stated its commitment to closely monitoring the closing bid price of its common stock and exploring available avenues to meet the Minimum Bid Requirement. However, the company emphasized that there are no guarantees of regaining compliance within the stipulated time frame, securing an extension, or maintaining compliance with other Nasdaq listing regulations. In the event that SRM Entertainment fails to achieve compliance within the specified deadline and any subsequent extensions granted by Nasdaq, the company will receive notice of potential delisting and will have the opportunity to appeal this decision to a Nasdaq hearings panel.

The current report was signed by Richard Miller, the Chief Executive Officer of SRM Entertainment, Inc., on behalf of the company on October 25, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read SRM Entertainment’s 8K filing here.

SRM Entertainment Company Profile

SRM Entertainment, Inc designs, manufactures, and sells toys and souvenirs to theme parks. It sells its products through amusement parks, entertainment venues, and theme hotels in the United States, China, Japan, and internationally. The company was incorporated in 2022 and is based in Jupiter, Florida.