VS Media Holdings Limited (Nasdaq: VSME) received a Nasdaq non‑compliance letter on December 15, 2025, stating that its closing bid price has remained below the required $1.00 minimum for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
The letter grants the company a 180‑day window to restore the bid price to at least $1.00 for ten consecutive business days. If the company fails to meet this threshold, it may be eligible for an additional 180‑day period under Rule 5810(c)(3)(A), but continued non‑compliance could trigger delisting of its Class A ordinary shares.
VS Media’s financial profile underscores the severity of the situation. Fiscal year 2024 revenue rose only 3.2% to $8.25 million, while losses increased 10.6% to $1.2 million. The trailing 12‑month revenue of $7.48 million was accompanied by an EBITDA of ($7,987) and a net loss of ($8,399). With a market capitalization hovering around $4 million, the company’s low bid price reflects a broader erosion of investor confidence and liquidity.
Management has indicated that it is exploring several options to regain compliance, including a potential reverse stock split, additional capital raising, or restructuring of its capital structure. The company has emphasized that it will act promptly to avoid a delisting scenario and to preserve its ability to raise capital and maintain market presence.
The Nasdaq notice has prompted a sharp decline in investor sentiment, with many market participants expressing concern over the company’s ability to meet listing requirements and its underlying financial health. The event has highlighted the regulatory risk that could limit the company’s access to capital markets and its capacity to fund growth initiatives.
In the long term, the bid price deficiency signals a critical juncture for VS Media. If the company fails to restore compliance, delisting would severely constrain its ability to raise capital, reduce liquidity, and diminish its competitive position in the digital creator network and social media marketing space. The company’s management must therefore accelerate its compliance efforts and consider strategic alternatives to stabilize the share price and protect shareholder value.
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