STRATA Skin Sciences Inc reported a sharp market reaction Thursday after the company received notice that it will be removed from the Nasdaq Capital Market for not meeting minimum stockholders' equity requirements. In premarket trading the stock fell 60.8% following the announcement.
The medical technology company said it did not meet Nasdaq's $2.5 million stockholders' equity requirement, even after Nasdaq granted an extension that ran through February 16, 2026. As a result of the delisting notice, trading of STRATA's common stock is scheduled to be suspended at the market open on February 19, 2026.
STRATA noted that it had submitted a compliance plan to Nasdaq on September 19, 2025, after receiving a deficiency notice in August. The company engaged two investment banks and held dozens of meetings with potential investors in an effort to secure financing. Those efforts did not yield sufficient funding on acceptable terms.
The company said any financing it could have obtained would have "resulted in significant dilution to the Company’s existing stockholders." In light of the inability to meet Nasdaq's equity threshold and the terms of potential financings, STRATA said it does not intend to appeal Nasdaq's determination.
Following the delisting, STRATA plans to "go dark" by terminating its registration under the Securities Exchange Act and suspending its periodic reporting obligations. The company expects to file the forms required to effect those changes with the Securities and Exchange Commission around March 2, 2026.
STRATA's board concluded that eliminating the expenses tied to maintaining public-company compliance would enable the company to focus on its operations, reduce cash burn, and pursue longer-term value creation. The company also acknowledged a downside for holders of its stock: shares are likely to become more illiquid, which may make selling more difficult for shareholders.
Context and next steps
The company will cease trading on Nasdaq at the opening on February 19, 2026. After filing to terminate its SEC registration around March 2, 2026, STRATA will suspend its public reporting. The company has declined to contest Nasdaq's decision, citing the dilutive nature of available financing options and the inability to meet the $2.5 million equity requirement despite an extension.
Shareholders should expect reduced liquidity in the stock and fewer public disclosures after the firm completes the steps to go dark. The board's decision to reduce public-company overhead reflects an intention to conserve cash and concentrate on operations, but the company acknowledged the trade-off in market access for shareholders.