Earlyworks Co., Ltd. received Nasdaq listing extension to regain compliance with listing standards by September 19, 2025.
Quiver AI Summary
Earlyworks Co., Ltd., a Japanese company utilizing its private blockchain technology, Grid Ledger System (GLS), announced it has received approval from the Nasdaq Hearings Panel for an exception allowing it to continue its listing on the Nasdaq Capital Market. This decision follows a previous determination that Earlyworks did not meet the required minimum market value for its securities. The company has received an extension until September 19, 2025, to comply with Nasdaq's listing standards by demonstrating sufficient stockholders' equity of $2.5 million and providing forecasts and financial disclosures to assure compliance. During this period, Earlyworks' American Depositary Shares will remain listed on Nasdaq as the company works towards regaining compliance while exploring strategic financing options.
Potential Positives
- The Nasdaq Hearings Panel granted Earlyworks Co., Ltd. an exception to enable continued listing on the Nasdaq Capital Market, allowing the company to remain listed while it works towards compliance.
- Earlyworks has an extension until September 19, 2025, to regain compliance with the Nasdaq Listing standards, providing the company with additional time to address its financial standing.
- The company has the opportunity to pursue compliance through an alternative standard, the Equity Rule, which may offer a feasible path to restore its standing in the market.
- Earlyworks' proprietary blockchain technology, GLS, supports the company's innovative platform with high-speed processing and versatility across multiple industries, reinforcing its operational foundation during this period of adjustment.
Potential Negatives
- The Company failed to regain compliance with Nasdaq Listing Rule 5550(b)(2), indicating it did not maintain the required minimum market value of $35 million for 30 consecutive trading days.
- Despite the granted extension for compliance, the Company is under scrutiny to address significant financial deficiencies that jeopardize its future on the Nasdaq Capital Market.
- The requirement to file a public disclosure detailing compliance transactions and income projections raises concerns about the Company's financial health and transparency moving forward.
FAQ
What decision did Nasdaq make regarding Earlyworks?
The Nasdaq Hearings Panel granted Earlyworks an exception for continued listing on the Nasdaq Capital Market.
What issue did Earlyworks face with Nasdaq listing compliance?
Earlyworks did not regain compliance with Nasdaq Listing Rule 5550(b)(2) regarding minimum market value for 30 consecutive trading days.
What is the new deadline for Earlyworks to regain compliance?
The new deadline for Earlyworks to regain compliance is September 19, 2025.
What must Earlyworks provide by the compliance deadline?
Earlyworks must file a public disclosure detailing compliance transactions and submit income projections for the next 12 months.
Will Earlyworks' shares remain listed during the compliance period?
Yes, Earlyworks' American Depositary Shares (ADSs) will remain listed and eligible for trading on Nasdaq during the extension period.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
TOKYO, June 26, 2025 (GLOBE NEWSWIRE) -- Earlyworks Co., Ltd. (Nasdaq: ELWS) (the “Company” or “Earlyworks”), a Japanese company operating its proprietary private blockchain technology, Grid Ledger System (“GLS”), today announced that it has received a decision from the Nasdaq Hearings Panel (the “Panel”) granting the Company an exception to enable continued listing on the Nasdaq Capital Market.
As previously disclosed on May 7, 2025, the Company received a staff determination letter dated May 2, 2025 (the “Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Company did not regain compliance with Nasdaq Listing Rule 5550(b)(2), which requires listed companies to maintain a minimum market value of listed securities of $35 million. The Company’s securities had failed to meet this requirement for 30 consecutive trading days, and the Company did not regain compliance during the 180-calendar-day grace period that ended on April 28, 2025.
In response, the Company timely requested a hearing before the Panel, staying the suspension of trading and delisting process. The Company also informed Nasdaq of its intent to pursue compliance through an alternative standard under Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders’ equity of $2.5 million (the “Equity Rule”). As part of its strategy, the Company has been evaluating and negotiating strategic financing options, including capital and business alliances with external partners.
Based on the information presented at the hearing, the Panel has granted Earlyworks an extension through September 19, 2025, to regain compliance with the continued listing standards, subject to the following conditions:
| 1. | On or before September 19, 2025, the Company must file a public disclosure describing the transactions undertaken to achieve compliance with the Equity Rule and provide an indication of its equity following those transactions. This may include: | |
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| 2. | On or before September 19, 2025, the Company must provide the Panel with: | |
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The Company’s American Depositary Shares (ADSs) will remain listed and eligible for trading on the Nasdaq Capital Market during the extension period, as Earlyworks works toward regaining full compliance.
About Earlyworks Co., Ltd.
Earlyworks Co., Ltd. is a Japanese company operating its proprietary private blockchain technology, GLS, to leverage blockchain technology in various applications in a wide range of industries. GLS is a hybrid blockchain that combines the technical advantages of blockchain and database technology. GLS features high-speed processing, which can reach 0.016 seconds per transaction, tamper-resistance, security, zero server downtime, and versatile applications. The applicability of GLS is verified in multiple domains, including real estate, advertising, telecommunications, metaverse, and financial services. The Company’s mission is to keep updating GLS and make it an infrastructure in the coming Web3/metaverse-like data society. For more information, please visit the Company’s website: https://ir.e-arly.works/.
For more information, please visit the Company’s website: https://ir.e-arly.works/.
For inquiries about this release, please contact:
Earlyworks Co., Ltd.
Contact E-MAIL: [email protected]
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may,” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.
