Purple Innovation Granted Nasdaq Exception After 1-for-25 Reverse Split

What Happened

• Purple Innovation, Inc. (PRPL) filed an 8-K on July 22, 2026 disclosing that Nasdaq’s Hearings Panel granted a conditional exception to avoid immediate delisting after the company failed to meet Nasdaq’s $1 bid-price requirement (Listing Rule 5450(a)(1)).
• The company told the Panel on June 11, 2026 it would pursue a reverse stock split approved by shareholders (allowable range 1-for-10 to 1-for-30). The Board set the split at 1-for-25, effective before trading opened on July 20, 2026. PRPL opened on a split-adjusted basis at $7.12 on July 20.
• The Panel’s Decision allows continued listing provided Purple demonstrates a closing bid of at least $1.00 per share for at least ten consecutive trading days on or before July 31, 2026. The Panel may reconsider or modify the exception if new events make continued listing inadvisable.

Key Details

• Nasdaq originally notified the company on November 5, 2025 that PRPL’s bid price had closed below $1 for 30 consecutive business days.
• Shareholder-approved reverse split range: 1-for-10 to 1-for-30; Board implemented a 1-for-25 split effective July 20, 2026.
• Post-split opening price on Nasdaq (July 20, 2026): $7.12 per share (split-adjusted).
• Compliance condition: show $1.00+ closing bid for a minimum of 10 consecutive trading days by July 31, 2026; failure could lead to delisting (with review rights).

Why It Matters

• For investors, the decision buys the company a short, defined window to regain compliance; if PRPL meets the 10-day $1 closing bid test it can remain listed on Nasdaq.
• The reverse split reduced outstanding share count and lifted the per-share trading price immediately, but it does not change the company’s underlying market value or fundamentals.
• If the company fails to satisfy the Panel’s conditions or if the Panel reconsiders, PRPL’s shares could be subject to delisting, which would significantly affect liquidity and investor access; shareholders should monitor trading prices and company disclosures closely.