TELA Bio Faces Nasdaq Delisting Notice; Seeks Hearing, Proposes Reverse Split

What Happened TELA Bio, Inc. announced that Nasdaq notified the company it was not in compliance with the minimum $1.00 bid price requirement after the company’s stock traded below $1.00 for 30 consecutive business days (notice dated March 17, 2026). After failing to regain compliance during the 180-calendar day cure period, Nasdaq informed TELA by letter dated September 15, 2026 that its common stock is subject to delisting unless the company timely requests a hearing. TELA intends to request a hearing, which will stay any suspension or delisting, and has filed a proxy (on September 14, 2026) asking shareholders to approve a reverse stock split in a ratio between 1-for-5 and 1-for-15; a special meeting is scheduled for October 8, 2026.

Key Details

• Nasdaq notice of noncompliance: March 17, 2026 (minimum bid price below $1.00 for prior 30 consecutive business days).
• Delisting notification/Staff letter: dated September 15, 2026 after the 180-day cure period lapsed.
• Company action: will request a hearing before a Nasdaq Hearings Panel (stay of delisting while pending).
• Reverse split proposal: proxy filed September 14, 2026 seeking shareholder approval of a 1-for-5 to 1-for-15 reverse stock split; special meeting set for October 8, 2026.
• Nasdaq compliance requirement if cured: closing bid >= $1.00 for 10 to 20 consecutive business days (per Nasdaq rules).

Why It Matters This filing signals that TELA’s Nasdaq listing is at risk because the stock has traded under the $1.00 minimum bid threshold. A delisting could reduce liquidity and make it harder for investors to trade the shares and for the company to access capital markets. The company’s hearing request preserves its listing while it pursues a corrective plan; the proposed reverse split, if approved, could raise the per-share price to meet Nasdaq’s requirement but will reduce the number of shares outstanding. Investors should note the October 8, 2026 shareholder vote and that approval is not guaranteed.