Snail receives Nasdaq delisting determination; announces 1-for-5 reverse split

Key facts

• Nasdaq Staff Determination issued July 1, 2026 pursuant to Listing Rule 5810(c)(3)(A)(iii) to delist Class A Common Stock
• Company did not maintain minimum closing bid price of $1.00 per share for 30 consecutive business days from November 11, 2025 through December 29, 2025
• Company failed to comply with Listing Rule 5550(b) requiring minimum $2,500,000 stockholders' equity, $35,000,000 market value of listed securities, or $500,000 net income from continuing operations
• Company had until June 29, 2026 to regain compliance with Minimum Bid Price Requirement
• 1-for-5 reverse stock split effective July 2, 2026 at 11:59 p.m. Eastern Time
• Class A Common Stock to reduce from approximately 15,468,890 shares to approximately 3,093,778 shares
• Class B Common Stock to reduce from approximately 28,748,580 shares to approximately 5,749,716 shares
• Majority Stockholders representing 95% of voting power approved reverse stock split at ratio of 1-for-2 to 1-for-10 on June 2, 2026; Board selected 1-for-5
• Company intends to timely request hearing before Nasdaq Hearings Panel to appeal Staff Determination
• New CUSIP number for Common Stock following reverse split will be 83301J308

Why it matters

Snail faces imminent delisting from Nasdaq unless its appeal succeeds and it regains compliance with listing standards within the timeframe the Hearings Panel may provide; the reverse split is a tactical effort to raise the stock price to the $1.00 minimum, but there is no assurance it will achieve the required level or that Nasdaq will not proceed with delisting.

Share