Webus International Limited (NASDAQ: WETO) received a Nasdaq deficiency letter on January 5 2026. The letter, dated December 30 2025, cites non‑compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share. The notice grants the company a 180‑day window—until June 29 2026—to restore compliance by maintaining a closing bid price of at least $1.00 for ten consecutive business days. The letter does not immediately affect trading or listing status, but failure to meet the requirement could trigger delisting or other sanctions.
Webus’s stock has been trading below the $1.00 threshold for an extended period. As of January 5 2026, the 52‑week low was $0.80, and the all‑time low reached $0.7979 on December 23 2025. This prolonged sub‑$1.00 performance indicates a sustained valuation pressure rather than a one‑off event. The company’s historical bid‑price trend underscores the urgency of addressing the deficiency before the June deadline.
The decline in bid price reflects a combination of sector‑wide headwinds and company‑specific challenges. Webus operates in the competitive TravelTech space, where demand for AI‑driven travel and digital mobility solutions has slowed amid broader economic uncertainty. Rising operating costs, coupled with intensified competition from larger incumbents, have compressed margins. Additionally, Webus previously received a Nasdaq notification on May 19 2025 for failing to maintain the minimum Market Value of Listed Securities of $35 million, suggesting a pattern of difficulty meeting listing standards. These factors have eroded investor confidence and contributed to the persistent low bid price.
In response, Webus has stated it will monitor the bid price closely and explore options to regain compliance. While the company has not disclosed a specific strategy, potential measures include a reverse stock split, cost‑control initiatives, or a turnaround plan targeting higher‑margin segments. Nasdaq’s recent rule changes limit the use of reverse splits as a cure for deficiencies, requiring companies to demonstrate substantive business improvements. Failure to achieve compliance by June 29 2026 could result in delisting, which would severely restrict Webus’s ability to raise capital and execute its growth strategy.
The Nasdaq deficiency letter imposes a 180‑day compliance period, a standard timeframe for minimum bid‑price violations. During this period, Webus must achieve ten consecutive business days with a closing bid price of at least $1.00. Nasdaq’s updated rules emphasize that reverse stock splits alone are insufficient unless accompanied by a credible plan to address underlying business issues. The company’s ability to meet these requirements will be closely watched by investors and regulators alike.
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