Sub-$1 Shares Trigger 180-Day Nasdaq Clock
Listed companies trading below $1 must restore the bid price within the exchange's compliance window or risk delisting.
Updated on Nov. 3, 2026 in Public Companies
Nasdaq has issued Lotus Technology Inc. a deficiency notice after its American Depositary Shares closed below the $1 minimum bid price, and the company must regain compliance by April 26, 2027. The notice has no immediate effect, and the shares continue trading on the Nasdaq Global Select Market, a development relevant to any company whose listed securities trade near the exchange's price floor.
Why it matters
Nasdaq's Listing Rule 5450(a)(1) requires a minimum $1 bid price, and a sustained breach triggers a formal compliance clock that shapes capital-raising, reverse-split, and investor-relations decisions. For operators of listed firms, the episode illustrates how quickly a sub-$1 trading stretch converts into a formal exchange obligation.
The notice rests on closing bid prices recorded between September 16 and October 27, 2026, measured against the Nasdaq $1 minimum bid price. Lotus has 180 calendar days, ending April 26, 2027, to post at least 10 consecutive business days at or above $1.
The players
Nasdaq
Nasdaq operates one of the largest U.S. stock exchanges, setting listing standards and enforcing minimum-bid and other continued-listing rules on the companies that trade on its platform.
Lotus Technology Inc.
Lotus Technology is a China-linked electric vehicle maker whose American Depositary Shares trade on the Nasdaq Global Select Market.
The details
Under Nasdaq rules, a company whose listed security closes below $1 for a sustained period receives a deficiency notice and a compliance window to bring the price back above the threshold. To satisfy the rule, the ADS closing bid must reach at least $1 on 10 consecutive business days before the window closes. Nasdaq has discretion to extend that 10-day test period.
Timeline
September 16 through October 27, 2026: closing bid prices cited in the notice fell below $1.
October 28, 2026: Nasdaq sent Lotus the deficiency notice.
November 2, 2026: Lotus disclosed the notice publicly.
April 26, 2027: deadline to meet the $1 minimum bid requirement.
Market Landscape
Nasdaq's Listing Rule 5450(a)(1) sets a $1 minimum bid price that triggers a deficiency notice and a 180-calendar-day compliance period when violated. Lotus's notice follows that standard, which applies to every issuer listed on the exchange regardless of sector or country of origin.
Public companies whose listed shares trade near $1 should track the 180-day compliance clock and the 10-consecutive-day test, since a missed deadline can lead to delisting or a formal extension request. Finance and investor-relations teams should review reverse-split and capital-raising options well before any deadline approaches.
The takeaway
Any company with listed securities should calendar the 180-day compliance window and the 10-business-day test well ahead of the deadline. Watch for Lotus's disclosed remediation plan, since the company says it is evaluating options to regain compliance.
What happens next
Lotus must post closing bids at or above $1 for 10 consecutive business days before April 26, 2027, or seek an additional compliance period if it misses that deadline.
Further reading
For context on how exchange listing standards affect publicly traded firms, see our Public Companies coverage.
Source note: This article includes information reported by TokenPost.
