VivoSim Labs Receives Nasdaq Notice for Minimum Bid Noncompliance

What Happened VivoSim Labs, Inc. (Nasdaq: VIVS) announced that on August 17, 2026 it received a written notice from Nasdaq’s Listing Qualifications Staff saying the company failed to meet the $1.00 minimum closing bid requirement under Nasdaq Listing Rule 5550(a)(2), based on the last 30 consecutive business days. Nasdaq has given VivoSim an initial 180-calendar-day compliance period—ending February 16, 2027—during which the company must have a closing bid of at least $1.00 for a minimum of ten consecutive business days to regain compliance. The notice does not affect current listing or trading, and the company’s common stock will continue to trade on the Nasdaq Capital Market under the symbol “VIVS.”

Key Details

• Notice date: August 17, 2026; initial compliance period: 180 days (until February 16, 2027).
• Regain condition: closing bid ≥ $1.00 for at least ten consecutive business days during the 180-day period.
• Possible second period: if eligible, an additional 180-day extension may be available if the company meets Nasdaq’s market value/public float and other initial listing standards (except the bid price) and notifies Nasdaq in writing.
• Company action: included a shareholder proposal in its preliminary proxy (filed Aug 10, amended Aug 13, 2026) to approve a reverse stock split in a range of 1-for-5 to 1-for-20; any reverse split would require stockholder approval.
• Trading status: no immediate delisting—shares continue to trade as VIVS. The company said it will monitor the bid price and consider available options.

Why It Matters Failure to regain compliance could lead to delisting, which typically reduces liquidity and can negatively impact the marketability and value of the stock. A reverse stock split (if approved and implemented) could raise the per-share market price and help meet Nasdaq’s $1 bid requirement, but it requires stockholder approval and is not guaranteed to restore or maintain compliance. Investors should note the Feb 16, 2027 compliance deadline, watch the company’s proxy materials and any votes on a reverse split, and monitor trading and subsequent SEC/Nasdaq disclosures for updates.