Earlyworks Draws Heavy Retail Buzz As Stock Slumps On Nasdaq Delisting Warning

Shares of blockchain-tech company Earlyworks Co., Ltd. ($ELWS) dropped over 6% Tuesday afternoon, attracting significant attention from retail investors. 

Trading volume surged to 1.09 million shares by early afternoon, nearly 90 times the daily average, following the company’s announcement that it received a non-compliance notification from the Nasdaq.

The notification, issued by Nasdaq’s Listing Qualifications Department on Oct. 29, indicates that Earlyworks fell below the minimum Market Value of Listed Securities (MVLS) threshold of $35 million required for continued listing on the Nasdaq Capital Market. 

This deficiency, based on the stock’s performance from Sept. 17 to Oct. 28, triggered the notice.

Earlyworks now has 180 days, until April 28, 2026, to regain compliance by achieving a market value of $35 million for 10 consecutive business days or meeting an alternate equity standard with shareholder equity of at least $2.5 million. 

If it fails to meet either standard within the allotted period, Earlyworks risks delisting from Nasdaq.

The announcement propelled ELWS to the top of Stocktwits’ most active stocks by message volume on Tuesday afternoon. 

Its following on the platform has jumped 15% and message volume has spiked nearly 50,000% in the past three months alone. 

The Tokyo-based company, whose shares debuted on the Nasdaq in July 2023, has seen its stock fall over 60% since its IPO amid its focus on NFTs and metaverse technologies.

Several ‘bullish’ watchers on Stocktwits have dismissed the stock’s recent slide as an attack by short-sellers.

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