Key Highlights

• Snail Inc. (NASDAQ: SNAL) received a Nasdaq delisting notice after its Class A Common Stock did not maintain the required minimum closing bid price.

• The company executed a reverse stock split to consolidate its outstanding shares, adjusting both Class A and Class B Common Stock.

• Snail Inc. Also failed to satisfy Nasdaq’s stockholders’ equity threshold, narrowing its available compliance pathways.

• The company has requested a hearing, which may temporarily halt delisting proceedings while the appeal is reviewed.

Delisting Notice Triggers Action

Snail Inc. (NASDAQ: SNAL) announced it received a determination from Nasdaq on July 1, 2026, indicating that its Class A Common Stock, par value $0.0001 per share, had not maintained a minimum closing bid price of $1.00 per share as required by Nasdaq Listing Rule 5550. The Determination was issued pursuant to Nasdaq Listing Rule 5810 after the stock remained below the required threshold for an extended period. Without corrective measures or a successful appeal, the company faces potential removal from the Nasdaq Capital Market.

Reverse Stock Split Announced

In response to the compliance shortfall, Snail Inc. Implemented a reverse stock split effective July 2, 2026. The adjustment reduced the number of outstanding shares of its Class A Common Stock, par value $0.0001 per share, while proportionally increasing the share price.

The company’s Class B Common Stock, par value $0.0001 per share, underwent a similar consolidation. The Board of Directors approved the action following authorization from holders representing a significant majority of the outstanding shares of Common Stock.

Compliance Challenges Persist

Nasdaq previously notified Snail Inc. On March 26, 2026, that it did not comply with Listing Rule 5550, which requires a minimum $2,500,000 in stockholders’ equity. The company’s inability to meet these standards restricts its eligibility for additional compliance periods under Nasdaq rules.

Hearing Requested to Delay Delisting

Snail Inc. Intends to request a hearing before Nasdaq’s Hearings Panel to challenge the delisting determination. According to the procedures set forth in the Nasdaq Listing Rule 5800 series, such a request typically pauses any suspension or delisting action until the panel issues a decision.

However, the outcome of the appeal remains uncertain, and the company may still need to demonstrate a viable plan to achieve compliance with Nasdaq’s listing requirements.

Trading to Resume Post-Split

Following the reverse stock split, trading of Snail Inc.’s Class A Common Stock is expected to resume on July 6, 2026, under the same ticker symbol, SNAL. Any fractional shares resulting from the split will be settled in cash based on the stock’s recent trading performance. The company’s CUSIP number will be updated to reflect the adjusted share structure.

Broader Investor Appeal Targeted

The reverse stock split was designed to enhance the stock’s appeal to a broader range of investors by increasing its per-share price. While the move may improve market perception, Snail Inc. Acknowledged that it does not guarantee compliance with Nasdaq’s minimum bid price requirement or prevent potential delisting if other financial benchmarks remain unmet.

Next Steps Uncertain

Snail Inc. Must now navigate the hearing process while addressing its ongoing compliance challenges. Investors and market participants will closely observe the panel’s decision and any subsequent corporate actions aimed at resolving the company’s regulatory and financial difficulties.

The outcome could significantly influence the stock’s future trading status and investor confidence in the near term.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.