Benzinga | Jan 21, 2022 04:10PM EST

MEDIROM Healthcare Technologies Reports Received Nasdaq Notification Related To Minimum Market Value Deficiency

MEDIROM Healthcare Technologies Inc. (Nasdaq CM: MRM), a holistic healthcare Company based in Japan (the "Company"), announced today that it has received a written notification (the "Notification Letter") from The Nasdaq Stock Market LLC ("Nasdaq") dated January 18, 2022, notifying the Company that it is not in compliance with the minimum market value requirement set forth in Nasdaq Listing Rules for continued listing on The Nasdaq Capital Market. Nasdaq Listing Rule 5550(b)(2) requires companies to maintain a minimum market value of US$35 million and Nasdaq Listing Rule 5810(c)(3)(C) provides that a failure to meet the minimum market value requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the market value of the Company from November 23, 2021 to January 14, 2022, the Company no longer meets the minimum market value requirement.

The Notification Letter does not impact the Company's listing on The Nasdaq Capital Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(C), the Company has been provided 180 calendar days, or until July 18, 2022, to regain compliance with Nasdaq Listing Rule 5550(b)(2). To regain compliance, the Company's market value must exceed US$35 million for a minimum of 10 consecutive business days. In the event the Company does not regain compliance by July 18, 2022, the Company may be eligible for additional time to regain compliance, or may face delisting.

The Company intends to monitor its market value between now and July 18, 2022 and intends to cure the deficiency within the prescribed grace period. During this time, The Company expect that American Depositary Shares representing common shares of the Company will continue to be listed and trade on The Nasdaq Capital Market.

The Company's business operations are not affected by the receipt of the Notification Letter.