SOBR Safe, Inc. Receives Nasdaq Delisting Notice After Significant Reverse Splits and Prolonged Bid Price Deficiency

Key Points:

• SOBR Safe, Inc. (NASDAQ: SOBR) has received a formal deficiency notice from Nasdaq due to the company’s failure to maintain the minimum bid price of \$1.00 for 30 consecutive business days.
• The company previously executed two major reverse stock splits: a 1-for-110 reverse split on October 2, 2024, and a 1-for-10 reverse split on April 4, 2025. The cumulative effect is a 1-for-1100 reverse split over two years.
• As a result of these cumulative reverse splits, SOBR Safe is not eligible for the standard 180-day compliance period typically afforded to companies to regain compliance with the minimum bid price rule.
• The company’s shares will continue to trade on Nasdaq under the symbol “SOBR” for now, with no immediate effect from the notice. However, delisting proceedings are imminent unless the company successfully appeals to a Nasdaq hearing panel.
• SOBR Safe plans to appeal the Nasdaq Staff’s determination and intends to present a compliance plan to the hearing panel, which may include yet another reverse stock split if necessary.

Details for Investors and Shareholders

Background:
On March 19, 2026, SOBR Safe, Inc. was notified by the Listing Qualifications Department of Nasdaq that its common stock had failed to meet the minimum bid price requirement of \$1.00 for 30 consecutive trading days. This is a direct violation of Nasdaq Listing Rule 5550(a)(2), which is a fundamental requirement for continued inclusion on the Nasdaq Capital Market.

Recent Reverse Stock Splits:
Shareholders should be acutely aware that, in attempts to maintain compliance, SOBR Safe has already executed two significant reverse splits in recent years:

• 1-for-110 reverse split on October 2, 2024
• 1-for-10 reverse split on April 4, 2025

The cumulative ratio of these actions is 1-for-1100. These measures were intended to increase the per-share trading price but have not resulted in sustained compliance. Because the cumulative ratio exceeds 1-for-250, Nasdaq rules disqualify SOBR Safe from receiving another automatic 180-day grace period to regain compliance.

Immediate Implications:

• No immediate delisting: The notice does not immediately remove SOBR Safe from the Nasdaq exchange. Shares will continue trading under the ticker “SOBR” while the company appeals the decision.
• Potential for delisting: If the company does not timely appeal or the appeal is unsuccessful, Nasdaq will move to delist the shares and suspend trading, which could have severe implications for liquidity and shareholder value.
• Business operations unaffected: The notice does not impact the company’s ongoing business, operations, or SEC reporting requirements.

Next Steps and Risks:

• Appeal planned: SOBR Safe intends to request a hearing and present a plan to regain compliance. The appeal will stay delisting or trading suspension until a final determination is made by the Nasdaq hearings panel.
• Further reverse split possible: The company indicates that it may execute yet another reverse split as part of its compliance plan if necessary.
• Uncertainty remains: There is no assurance that the plan will be accepted or that the company can achieve or maintain compliance with Nasdaq’s listing standards. Failure to do so will likely result in delisting, which could negatively impact share price, investor confidence, and access to capital markets.

What Shareholders Need to Know

• This notice is a clear signal of financial distress and ongoing risk of delisting. The history of large, back-to-back reverse splits without sustained price recovery may be seen as a red flag by many investors.
• If delisted, SOBR Safe shares could move to over-the-counter (OTC) markets, which are less liquid and may result in a significant decrease in share value.
• The company’s plan to appeal and potentially perform another reverse split introduces both hope for compliance and risk of further dilution for existing shareholders.
• Given the cumulative reverse split ratio and continuing price weakness, these developments are highly price-sensitive and should be monitored closely by all current and potential investors.

Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult with a financial advisor before making investment decisions. The situation described involves substantial risk, including the potential for significant share price volatility or loss of exchange listing.

View SOBR Safe, Inc. Historical chart here