Nasdaq Inc. announced that it will delist Mingzhu Logistics Holdings Limited, a Cayman‑island‑registered company listed on the Nasdaq Capital Market, after a Hearings Panel denied the company’s appeal on December 10 2025. Trading of the company’s shares will be suspended at the opening of trading on December 12 2025, and the shares will subsequently be moved to the over‑the‑counter market.
The delisting stems from a failure to meet Nasdaq’s Bid Price Rule (Listing Rule 5550(a)(2)), which requires a closing bid price of at least $1.00 for 30 consecutive business days. Mingzhu Logistics had not achieved the required bid price threshold, and the company’s bid price had remained below $1.00 for the full 30‑day period, triggering the rule’s enforcement action.
In May 2025, a Nasdaq Discretionary Panel Monitor was imposed on Mingzhu Logistics, eliminating the standard 180‑day cure period that most companies receive when they fall below the bid‑price threshold. The monitor accelerated the delisting process, allowing Nasdaq to move directly to a suspension and delisting without a cure period, which is why the company’s appeal was denied so quickly.
During the December 9 2025 hearing, Mingzhu Logistics presented a compliance plan that included a proposed reverse share split. The plan was deemed insufficient to bring the company into compliance with the bid‑price rule, and the panel concluded that the reverse split would not raise the bid price to the required level within the necessary timeframe. Consequently, the panel denied the appeal on December 10 2025.
Financially, Mingzhu Logistics has been in a precarious position. The company has reported negative free‑cash‑flow and has been unprofitable for the past twelve months. Its market capitalization is only about $0.35 million, and the stock has traded at a 52‑week low, reflecting a steep decline in investor confidence. These metrics underscore the depth of the company’s liquidity and profitability challenges, which contributed to its inability to meet the bid‑price requirement.
Following the delisting decision, the company’s shares will be suspended and will trade on the OTC market, where liquidity is typically limited. Investors are concerned that the move will reduce trading volume and make it more difficult to buy or sell shares, potentially leading to wider bid‑ask spreads and greater price volatility.
Mingzhu Logistics has indicated that it will file a further appeal with the Nasdaq Listing and Hearing Review Council within the 15‑day deadline. The company’s next step is to seek a higher level of review, but the absence of a cure period and the company’s weak financials make a successful outcome unlikely.
The delisting signals a broader warning to Nasdaq‑listed companies that failure to maintain a $1 bid price for 30 consecutive days can result in rapid suspension and removal from the exchange. For Mingzhu Logistics, the loss of Nasdaq listing will likely accelerate its decline, increase the risk of bankruptcy, and diminish shareholder value. The event also highlights the importance of maintaining robust liquidity and meeting listing standards to preserve market access.
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