SCWorx Corp. Receives Nasdaq Delisting Notice Over Low Public Float

What Happened

• On Sept 4, 2026 SCWorx Corp. (WORX) filed an 8‑K reporting that Nasdaq’s Listing Qualifications staff sent a letter on Sept 2, 2026 saying the company does not meet Nasdaq Listing Rule 5550(a)(4), which requires at least 500,000 publicly held shares. The company confirmed it had 89,782 publicly held shares as of Sept 1, 2026.
• SCWorx completed a 1-for-12 reverse stock split effective Aug 3, 2026 to satisfy Nasdaq’s minimum bid price requirement; the stock met the $1.00 closing bid test for 20 trading days ending Aug 31, 2026, but Nasdaq rules treat the reverse split as causing non‑compliance with the publicly held shares rule and therefore the company is not yet considered compliant with the bid‑price rule.

Key Details

• Nasdaq publicly held shares requirement: 500,000 shares; SCWorx reported 89,782 publicly held shares (Sept 1, 2026).
• Reverse split: 1-for-12 effective Aug 3, 2026; closing bid price was ≥ $1.00 for 20 trading days ended Aug 31, 2026.
• Market value deficiency remains: Nasdaq Listing Rule 5550(a)(5) (minimum market value of publicly held shares of $1,000,000) with a compliance period through Jan 20, 2027.
• Company deadline to submit written views to the Nasdaq Hearings Panel: Sept 9, 2026; the Panel will decide on continued listing.

Why It Matters

• This is a material listing risk: if the Panel decides to delist WORX from Nasdaq, the stock would likely move to the over‑the‑counter market, reducing liquidity and the availability of quotations.
• Regaining compliance likely requires issuing additional shares to increase the number of publicly held shares, which would dilute current shareholders and could pressure the market price. The company’s board has not set terms or timing for any such issuance.
• Investors should monitor Nasdaq Panel actions, any planned equity issuance, and trading liquidity—these are the immediate drivers of potential dilution, price impact, and the company’s continued Nasdaq listing.