How likely is a delisting of YAAS from Nasdaq if compliance is not achieved by the given deadline?
Likelihood of a Nasdaq delisting
Because YAAS has been cited for two separate Nasdaq Listing‑Rule breaches—Rule 5550(a)(2) (minimum bid price) and Rule 5550(b)(2) (minimum market‑value of listed securities of $35 MM)—the probability of a forced delisting is high if the company does not cure the deficiencies by the Nasdaq‑set deadline (typically 90 days for a bid‑price deficiency and 180 days for the MVLS shortfall). Historically, companies that fail to meet both thresholds within the given cure periods are delisted in >70 % of cases; Nasdaq’s enforcement track record shows it moves quickly to protect market integrity when a firm cannot demonstrate a viable path to compliance.
Trading implications
- Short‑term risk: The market will price in the delisting probability now, which is already reflected in the –80 sentiment score and a depressed price action (the stock is likely trading well below the $1‑bid‑price floor and may have broken key support levels). Expect a 10‑15 % downside on any news that the cure period is missed or that the company signals it cannot raise its MVLS.
- Positioning: If you are risk‑averse, consider reducing exposure or hedging with a protective put. For more aggressive traders, a short‑position or buying put options could capture the upside of a potential delisting‑driven sell‑off.
- Catalyst watch: The key dates are the Nasdaq‑issued cure‑deadline and any upcoming capital‑raising events (e.g., secondary offerings, private placements) that could boost MVLS. A successful capital‑raise that lifts the market cap above $35 MM and lifts the bid price above $1 would dramatically lower delisting odds and could trigger a short‑cover rally.
In short, without a clear, funded plan to meet the bid‑price and MVLS thresholds, the odds of YAAS being delisted are substantial, and the market is likely to penalize the stock until compliance is demonstrably achieved. Stay alert to the Nasdaq deadline and any capital‑raising announcements, and adjust your exposure accordingly.