Healthcare and wellness company KindlyMD has received a deficiency notice from Nasdaq after its stock price failed to maintain the exchange's minimum bid price requirement of $1.00. The company now has 180 days to regain compliance or face potential delisting from the major stock exchange.
KindlyMD, a healthcare services company that previously ventured into cryptocurrency mining operations, has been notified by Nasdaq that it no longer meets the exchange's minimum bid price requirement, putting its listing status at risk.
The Las Vegas-based company received a deficiency letter from Nasdaq after its common stock closed below the required $1.00 minimum bid price for 30 consecutive business days. This development marks another challenge for the healthcare provider, which has seen its stock value significantly decline over recent months.
Under Nasdaq's listing rules, KindlyMD has been granted a 180-day compliance period, extending to June 16, 2025, to restore its share price above the $1.00 threshold. To regain compliance, the company's stock must maintain a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading days during this period.
The potential delisting comes at a particularly challenging time for KindlyMD, which has undergone significant business transformation in recent years. The company, originally focused on providing integrative healthcare and pain management services, expanded into Bitcoin mining operations in 2021 during the cryptocurrency boom. However, like many companies that diversified into crypto mining, KindlyMD has faced headwinds as the digital asset market cooled and energy costs remained elevated.
If KindlyMD fails to meet the minimum bid price requirement by the June deadline, Nasdaq may grant an additional 180-day compliance period if the company meets certain conditions, including transferring to the Nasdaq Capital Market if not already listed there. Alternatively, the company could pursue a reverse stock split to artificially boost its share price above the required threshold.
Delisting from Nasdaq would represent a significant setback for KindlyMD, as it would reduce liquidity for shareholders, limit access to capital markets, and potentially diminish investor confidence. Companies that are delisted from major exchanges often see their stocks relegated to over-the-counter (OTC) markets, where trading volumes and transparency are considerably lower.
KindlyMD has not yet announced specific measures it plans to implement to regain compliance with Nasdaq's listing requirements.