Purple Innovation, Inc. 8-K

What Happened

• Purple Innovation, Inc. (PRPL) filed an 8-K (Item 3.01) reporting that Nasdaq notified the company it failed to meet Listing Rule 5450(a)(1) (minimum $1.00 bid) after the bid closed below $1.00 for 30 consecutive business days. Nasdaq first notified the company on November 5, 2025 and provided a 180-day cure period that expired on May 4, 2026. Because the company did not regain compliance and is not eligible for a second 180‑day period, Nasdaq has determined the securities will be scheduled for delisting and suspended at the opening of business on May 14, 2026 unless the company requests an appeal by May 12, 2026.

Key Details

• Nasdaq initial notice date: November 5, 2025; 180‑day cure period expired May 4, 2026.
• Company did not regain compliance with the $1.00 minimum bid and is ineligible for a second remediation period.
• Nasdaq’s Delisting Determination would lead to suspension on May 14, 2026 and filing of Form 25‑NSE to remove listing/registration, unless an appeal is timely requested.
• Purple Innovation will request a hearing before the Nasdaq Hearings Panel on or before May 12, 2026; that request is expected to stay the suspension and the Form 25‑NSE filing while the Panel decides. The company says it has a plan, including a possible reverse stock split, to regain compliance.

Why It Matters

• A delisting determination is material: if Nasdaq’s suspension and Form 25‑NSE go into effect, Purple Innovation’s shares would be removed from Nasdaq, reducing visibility and potentially liquidity for investors.
• The company’s timely appeal should keep the stock trading on Nasdaq while the hearing is pending, but there is no guarantee the Panel will rule in the company’s favor.
• Investors should monitor the appeal outcome and any corporate actions (such as a reverse stock split) that the company may implement to meet Nasdaq listing requirements.