Earlyworks (US:ELWS) Globenewswire·2025-05-07 20:10Core Viewpoint - Earlyworks Co., Ltd. is facing delisting from the Nasdaq Capital Market due to its market value falling below the required $35 million for 30 consecutive trading days, and it did not regain compliance during the 180-day grace period [2][3] Group 1: Delisting and Compliance - The Nasdaq determined to delist Earlyworks' securities as it failed to meet the minimum market value requirement [2] - The company has until May 9, 2025, to appeal the delisting decision, or trading of its American Depositary Shares will be suspended on May 13, 2025 [3][4] - Earlyworks is considering an appeal and has plans to request a hearing to stay the suspension and delisting process [4] Group 2: Financial Strategy and Compliance - The company is exploring options to meet the equity standard of at least $2.5 million in shareholders' equity to regain compliance with Nasdaq's listing standards [5] - Earlyworks is evaluating strategic options, including third-party allotments and business alliances, to strengthen its financial base [5] - The company is in discussions with potential investors to enhance its capital structure [7] Group 3: Business Development and Growth - Earlyworks is committed to enhancing shareholder value and is engaged in discussions with leading Japanese companies across various sectors to co-develop services powered by its Grid Ledger System (GLS) [6] - The company aims to accelerate these initiatives in the coming quarters to contribute to business growth [6] - Earlyworks is making progress in securing strategic financing to support sustainable scaling and enhance shareholder value [7] Group 4: Technology Overview - Earlyworks operates its proprietary private blockchain technology, GLS, which features high-speed processing, tamper-resistance, and versatile applications across multiple industries [8] - GLS is designed to serve as an infrastructure for the upcoming Web3/metaverse-like data society [8]