On December 23, 2025, the Nasdaq Hearings Panel granted TNL Mediagene continued listing on the Nasdaq Capital Market, provided the company meets the $1.00 bid‑price rule by January 7, 2026. The panel’s ruling followed a hearing on December 16, 2025, during which TNL Mediagene presented a compliance plan that includes a 1‑for‑20 reverse share split effective December 23, 2025, to raise the per‑share trading price and bring the company back into compliance with Nasdaq’s minimum bid‑price requirement.
The reverse split is a cosmetic measure that consolidates 20 shares into one, effectively multiplying the share price by 20 while reducing the number of shares outstanding. The split was announced on December 19 and became effective on the same day the panel granted continued listing. While the split lifts the share price, it does not address the underlying liquidity and profitability issues that caused the bid‑price decline.
TNL Mediagene’s financials illustrate the challenges behind the compliance deadline. Fiscal 2024 revenue rose 35.3% to $48.5 million from $35.8 million in fiscal 2023, driven by growth in its digital media brands across Japan, China, and the United States. However, the company posted a net loss of $85 million in fiscal 2024, a sharp increase from the prior year’s loss, and its gross margin expanded only modestly from 35.3% to 36.6%. The combination of high operating costs and a low share price has left the company vulnerable to delisting if it cannot lift its bid price above $1.00.
The market reacted negatively to the reverse‑split announcement, with TNL Mediagene’s stock falling 31.05% on the day of the announcement. Investors interpreted the split as a sign of financial distress rather than a strategic improvement, and the decline reflected concerns that the company’s underlying fundamentals—particularly its profitability and liquidity—are insufficient to sustain a $1.00 bid price without additional capital or a turnaround in revenue growth.
Management has emphasized a shift toward artificial‑intelligence initiatives, including the planned launch of Agentic Newsroom and CiteRadar, as a potential growth engine. While these projects signal a strategic pivot, they are long‑term and do not provide immediate relief to the company’s liquidity constraints. The company’s ability to meet the January 7 deadline will therefore be a critical short‑term milestone for investors and a barometer of its near‑term viability.
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