Nasdaq Moves to Delist House of Doge After Shares Fall to $0.10 or Below
Key Facts
House of Doge said in a filing submitted on Nov. 2 that Nasdaq staff had decided to delist its shares after it failed to regain compliance with the minimum bid price requirement. The company said its closing price remained at $0.10 or below for 10 consecutive trading sessions, from Oct. 13 to Oct. 26. The stock was listed on the Nasdaq market under the ticker HODO, according to its quarterly report. EL7’s daily closing record shows the stock closed at $0.0401 on Nov. 2. The company said the staff determination includes a trading suspension at the open of business on Nov. 3, followed by the filing of a form to remove the securities from listing and registration on Nasdaq.
The delisting decision followed an earlier Nasdaq notice: the company received a letter on Sept. 9 saying its closing price had been below the minimum $1 per share for 30 consecutive business days. The letter gave the company an initial 180-day period to regain compliance, ending on March 8, 2027. But the company’s filing said the subsequent delisting decision superseded that timetable, even though the original period had not expired. The filing said the company had failed to regain compliance with the bid price requirement. The announced action is therefore tied to the minimum bid price requirement, after the price fell to $0.10 or below during the specified October period.
Daily closing data show HODO fell from $0.0542 on Oct. 27 to $0.046 on Oct. 28, then to $0.0442 on Oct. 29 and $0.0401 on Oct. 30. EL7 data also recorded a close of $0.0401 on Nov. 2. These readings put the stock below the $0.10 and $1 levels cited in Nasdaq’s filing, but do not change that the stated decision criterion was the bid price over the 10-day period from Oct. 13 to Oct. 26. The filing included in the evidence did not comment on the stock’s daily performance or the reason for its decline. The company said the planned trading suspension would take place at the open of business on Nov. 3.
The company’s financial report for the quarter ended June 30 provides context on its financial position: it reported cash of $662,499 and current liabilities of $19,872,010. Working capital deficit stood at $16,353,654, according to the report filed with the U.S. Securities and Exchange Commission. The company said these conditions raise substantial doubt about its ability to continue as a going concern. Regarding its Dogecoin-related assets, it said it did not directly own Dogecoin as of June 30. It reported, however, an investment in the TDOG fund with a fair value of $1,132,997 on that date; the investment was pledged as collateral for a margin loan of $680,384.
House of Doge said it was evaluating its options, including requesting a hearing before a Nasdaq committee. The request, accompanied by a nonrefundable fee of $20,000, must be received by no later than 4:00 p.m. Eastern Time on Nov. 3. The company said, however, that filing a timely request would not halt the trading suspension. It also said it expects to include a proposal for approval of a reverse stock split in the proxy statement for its annual meeting. Any hearing request could include a plan to regain compliance, with a possible commitment to carry out a reverse stock split if necessary.
The company said over-the-counter trading could be one possible outcome, and warned that the trading suspension or delisting, the availability of financing and its financial position could affect its results. The announced action consists of separate stages: Nasdaq staff’s decision to delist, the trading suspension scheduled for the open on Nov. 3, and then the filing of Form 25-NSE to remove the securities from listing and registration. The filing did not say that the suspension had occurred when it was issued; it specified its upcoming date. Nor did it say the company had requested a hearing, only that it was evaluating that option. The filing set the deadline for that request at 4:00 p.m. Eastern Time on Nov. 3.