Lianhe Sowell International Group Ltd. (NASDAQ:LHSW) experienced a decline in its share price after the company informed investors that Nasdaq had issued a notice citing non-compliance with the minimum bid-price rule. Shares dropped 6.2% on Wednesday following the disclosure.
The firm said it was notified on January 22, 2026 that its stock had not maintained the $1.00 minimum bid price set out in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. Despite that notice, the company's common stock will remain listed and trade on Nasdaq under the ticker symbol "LHSW" while the company pursues corrective steps.
Nasdaq has provided a 180-day compliance window, giving Lianhe Sowell until July 21, 2026 to regain compliance with the bid-price requirement. To cure the deficiency, the closing bid price must equal or exceed $1.00 for at least ten consecutive business days within that period.
If Lianhe Sowell is unable to meet the price threshold by the July deadline, the company may still become eligible for an additional 180-day extension, but only if it satisfies other Nasdaq Capital Market listing standards. The notice does not immediately impact the stock's trading status, but it does require the company to take actions to return to compliance or face potential delisting procedures.
In its statement, the company said it will closely monitor its closing bid price and evaluate options to regain compliance. Among the measures it listed is a possible reverse stock split, which is a common mechanism companies use to raise their per-share price.
Lianhe Sowell provides industrial vision and robotics solutions, with a focus on smart transportation, industrial automation, artificial intelligence, and machine vision technologies. The company's core technology areas place it at the intersection of industrial automation and advanced machine perception.
Summary
The company received a Nasdaq notice on January 22, 2026 for failing to meet the $1 minimum bid-price requirement and was given until July 21, 2026 to comply. The stock continued to trade under the symbol "LHSW" while management evaluates options, including a potential reverse stock split, to restore compliance.