Nasdaq Suspends Trading in Charming Medical Securities After Appeal Deadline Passes
Key Facts
Charming Medical said on November 9, 2026, that trading in its securities on Nasdaq had been suspended after it failed to request a hearing before the November 5 deadline. The company had received a delisting determination from the exchange’s Listing Qualifications staff, under a rule addressing trading activity that may indicate manipulation following a temporary suspension by the U.S. Securities and Exchange Commission. The company said Nasdaq had not informed it of any finding or determination that it had committed a violation. The announcement confirmed that the delisting process began on schedule, while trading in the securities had already been halted for about a year. The move puts the stock’s trading future in the balance, with a possible transition to the over-the-counter market, where the company cannot guarantee that an active secondary market will develop.
The company said it received on November 5 a letter dated October 29 from Listing Qualifications staff stating that Nasdaq had decided to delist its securities under IM-5101-4. Nasdaq’s October 29 notice had set November 9 as the delisting date unless the company appealed to the Listing Qualifications Hearings Panel. The notice said the securities would remain halted and unavailable for trading pending a decision on any appeal. But the company did not request a hearing by the November 5 deadline, and the suspension announced on November 9 therefore took effect. The sequence of dates reflects the case’s progression from notice of a delisting decision to suspension of trading after the deadline to request a hearing passed.
The trading halt dates back to November 2025, when the U.S. Securities and Exchange Commission temporarily suspended trading in the company’s securities from November 12 to November 25. The SEC said recommendations posted by unidentified people on social media urged investors to buy, hold or sell MCTA securities and send images documenting their trades. The SEC said the recommendations appeared designed to artificially increase the security’s price and trading volume. Nasdaq then halted trading on November 26, 2025, and the halt has remained in place since that date. Under Nasdaq Rule 5101, the exchange may exercise its discretion over initial and continued listing to protect market quality, public and investor confidence, and the public interest; IM-5101-4 permits delisting when trading activity indicates possible manipulation following a temporary SEC suspension.
The company said the delisting decision does not mean, based on what Nasdaq told it, that it was found to have committed a violation related to recent trading activity or otherwise. The rule distinguishes the possibility of manipulation that may prompt exchange action from a determination of the company’s responsibility; the company said Nasdaq had not informed it of any such findings or conclusions. The SEC’s 2025 suspension was tied to recommendations from unidentified people, according to the agency’s statement, while Nasdaq linked its decision to a rule covering indicators of possible manipulation after the SEC’s temporary suspension. The delisting decision alone therefore does not establish that the company participated in those recommendations or in any improper activity. The announced action concerns the securities’ listing and their ability to trade on Nasdaq.
The company said Nasdaq would later submit a Form 25-NSE to the U.S. Securities and Exchange Commission to remove the company’s securities from listing and registration on Nasdaq. The securities may be eligible for trading or quotation on the over-the-counter market after their exchange trading is suspended. But the company said there was no guarantee that any broker would make a market in or quote its securities, or that an active and sustainable secondary market would develop. It also warned that over-the-counter trading may involve less available information, weaker liquidity and greater volatility. The next announced step is the filing, while the company has not said whether over-the-counter trading will actually become available or when.
Charming Medical said the delisting decision would not immediately affect its ongoing business operations or financial position, and that it would continue operating as usual. This comes as its annual report for the fiscal year ended March 31, 2026, showed revenue falling 22.7% to 4,807,713 dollars from 6,221,751 dollars in the prior year. The company also swung from net income of 1,199,085 dollars in the fiscal year ended March 31, 2025, to a net loss of 22,648 dollars in the following year. The annual report also said a securities class action was filed in December 2025 against the company and related parties. The company described the lawsuit as being at an early stage and denied wrongdoing.