What contingency plans does the company have if it fails to meet the required bid price and faces delisting?

Contingency plan disclosed – In its Nasdaq‑compliance filing, PicoCELA said that, should it be unable to lift its share price back above the $1 minimum within the 30‑day cure period, the board will immediately move to a reverse‑stock‑split (the most common Nasdaq remedy) and will simultaneously raise additional equity capital through a private placement or rights offering. The company has also asked Nasdaq for a grace‑extension up to the full 180‑day period, outlining a detailed action plan that includes tightening cash‑flow management, accelerating its rollout of the new mesh‑router line and pursuing strategic OEM partnerships to boost near‑term revenue. If the extension is denied, the firm will consider re‑listing on an alternative U.S. market (OTCQX) or a Japanese exchange, thereby preserving liquidity for existing shareholders.

Trading implications – Until the cure is confirmed, PCLA’s stock is likely to remain highly volatile and may experience further downward pressure from forced‑selling by institutional funds that are prohibited from holding non‑compliant securities. Technicals show the price trading well below the $1 threshold with a steep down‑trend and weakening volume, suggesting limited upside in the short run. Traders should monitor the Nasdaq hearing date (typically within 10‑15 business days) and any press release about a reverse split or capital raise; a confirmed split or successful financing could provide a short‑term bounce and present a speculative entry for risk‑tolerant buyers. Conversely, if no remedial action materialises, a delisting risk premium will stay embedded, making a protective put or a cautious short position prudent for the next 2‑3 months. Fundamental strength in its wireless‑mesh niche does not offset the compliance risk, so the primary driver of price action will be the outcome of the Nasdaq cure process.