Nasdaq to Suspend Datavault AI Trading on Nov. 17; Stock Expected to Move to OTC
Key Facts
Datavault AI said on Nov. 13 that Nasdaq had decided to suspend trading in its common stock effective Nov. 17, 2026, while the company expects the shares to become eligible for trading on OTC markets when the market opens that same day. The decision follows continued noncompliance with Nasdaq’s minimum bid price requirement, set at $1.00 per share, according to the company’s statement. Nov. 17 is the specified date for the suspension on Nasdaq and the expected start of trading outside the exchange. The company received an additional compliance period in August that runs through Feb. 22, 2027. But the suspension notice issued in November comes before that deadline, putting the expected move to OTC at the center of the latest developments.
The price deficiency dates back to a notice the company received on Feb. 24, 2026, after its closing bid price remained below $1.00 for 30 consecutive business days, according to its filing with the U.S. Securities and Exchange Commission. The notice said this violated the minimum bid price requirement for continued listing on the Nasdaq Capital Market. It gave the company an initial compliance period of 180 calendar days, through Aug. 24, 2026, while its shares continued to trade on Nasdaq during that period. Regaining compliance required a close at $1.00 or more for at least 10 consecutive business days. On Aug. 25, the company said it had received an additional 180-day period, ending Feb. 22, 2027.
The company said in February that the second compliance period was conditional on meeting the other applicable listing criteria, except for the bid price requirement, and notifying Nasdaq of its intention to address the deficiency. It added that a reverse stock split could be among the remedies if necessary. A preliminary proxy statement from the company said regaining compliance generally requires the bid price to close at $1.00 or more for 10 consecutive business days, though Nasdaq may require a longer period. In that statement, the company asked shareholders to consider authorizing the board to carry out a reverse stock split at a ratio set by the board within a range of 1-for-2 to 1-for-50. The annual meeting was scheduled for Dec. 16, 2026, and the proposal said the split could be carried out during the following 12 months if authorized.
The company expected its shares to close at $0.0600 on Nov. 13, up 6.38% for the session, according to Investing.com data. The stock had fallen 16.52% in the Nov. 9 session, when it stood at $0.0566. The latest session’s move came ahead of the announced suspension date, and the company’s statement did not link the daily price change to the decision. The company said in its proxy statement that trading alternatives on the Nasdaq Capital Market are generally less efficient and may affect the stock’s liquidity and price, making it harder to sell shares or obtain accurate quotes. The company is also awaiting an announcement of the date for its third-quarter 2026 results, after saying in a separate announcement that the release date would be set later.
According to the proxy statement, if the company does not regain compliance by Feb. 22, 2027, Nasdaq may notify it of a delisting, and the company could then appeal the decision to a hearing panel. The statement does not guarantee that the company will regain compliance or that an appeal will be accepted. That makes the deadline in the August extension the focus of the next regulatory step, even though the Nasdaq trading suspension is scheduled before the deadline expires. A vote on authorizing the reverse split at the annual meeting announced for Dec. 16 also remains a subsequent development in the company’s efforts to address the price deficiency. The November statement did not say whether the company would carry out the split or whether it would change the suspension decision.