Nasdaq Sets Nov. 9 Date to Delist Charming Medical Unless Company Appeals
Key Facts
Nasdaq said on Oct. 29, 2026, that it will delist Charming Medical’s securities on Nov. 9 unless the company appeals the decision to the Hearings Panel of the Listing Qualifications Department. The exchange said the shares will remain suspended pending a decision on any appeal, so the scheduled date does not mean the delisting is final. Nasdaq said it had decided to exercise its authority under Rule IM-5101-4 to remove the company’s securities from the market. The securities may be eligible to trade over the counter after their delisting from Nasdaq, according to the exchange’s notice. The notice does not cite a specific listing requirement violation as the basis for the decision.
Nasdaq’s move follows regulatory action that began in November 2025 and then led to an ongoing trading suspension. The U.S. Securities and Exchange Commission temporarily suspended trading in the company’s securities from Nov. 12 through Nov. 25, 2025, because of anonymous social media recommendations that appeared designed to artificially raise the share price and trading volume. The recommendations included calls to buy, hold or sell the securities, along with requests to post images of transactions, according to the SEC order. The company said in its annual report: "We did not authorize any promotional activity of this kind." After the SEC suspension ended, Nasdaq halted trading on Nov. 26, 2025, pending additional information requested from the company.
The company’s Class A ordinary shares are listed on the Nasdaq Capital Market under the ticker MCTA, but its annual report says trading has been suspended since Nov. 12, 2025. A Nasdaq notice issued when trading was halted in November 2025 said the last sale price was $29.355 a share. That price relates to the earlier trading halt notice, not the delisting notice issued in October 2026. EL7 data also records a price of $29.35 for the ticker on Oct. 22, 27 and 28, 2026, but that data does not establish that trades were executed on those days. The recorded prices therefore do not show that trading resumed during the suspension.
Operationally, Charming Medical’s revenue fell to $4,807,713 in the fiscal year ended March 31, 2026, from $6,221,751 in the prior year, a decline of 22.7%, according to its filing with the Securities and Exchange Commission. Revenue had risen 3.4% in fiscal 2025 to $6,221,751, compared with $6,015,375 in fiscal 2024. The company attributed the latest decline mainly to lower revenue from beauty and wellness services, postpartum services and product sales. Revenue from those services fell to $4,508,504 in fiscal 2026 from $5,967,277 in the prior year. The company said lower customer spending and customer numbers, along with the closure of its Tsim Sha Tsui center since June 2025, contributed to the decline in service revenue.
The revenue breakdown points to a notable reliance on amounts tied to prior sales or unused packages. The company said $2,618,481, or about 54.5% of fiscal 2026 revenue, was recognized from contract liability balances outstanding at the beginning of the year. It also recognized $1,658,776 in revenue, or about 34.5% of the total, when unused packages expired. The company added that its future results will depend more heavily on selling new packages. As of March 31, 2026, cash and cash equivalents totaled $4,699,273, up from $816,771 on March 31, 2025, but the company cautioned that the improvement in liquidity was largely due to nonrecurring proceeds from its public offering.
The company also faces a securities class action that it said was filed on Dec. 19, 2025, with plaintiffs filing an amended complaint on June 12, 2026. Its annual report said a response to the amended complaint was due on Aug. 11, 2026, and the company said it would vigorously defend itself. Nasdaq’s delisting notice did not link the action to the lawsuit, but it comes while the shares remain unavailable for trading. The company said the ongoing suspension has constrained its ability to raise financing through share issuance and denied it access to public capital markets for as long as it remains in place. It also warned that a halt in cash flows or unexpected capital needs could weaken its ability to continue operations.