Share This Article
There’s something oddly satisfying about watching a company climb back from the brink of a potential delisting.
That’s exactly what we’re seeing with Meiwu Technology Company Limited (NASDAQ: WNW), which just announced it has successfully regained compliance with Nasdaq’s minimum bid price requirement.
The Compliance Comeback
If you’ve been watching WNW’s stock chart lately, you’ve probably noticed something remarkable happening. After struggling to maintain the crucial $1.00 threshold that Nasdaq requires for continued listing, Meiwu has managed to keep its bid price above that mark for 10 consecutive business days from April 1-14, 2025.
For those unfamiliar with Nasdaq’s rulebook, this was no small feat. When a stock falls below $1.00 for an extended period, the countdown to potential delisting begins. Companies typically get 180 days to regain compliance, and if they can’t, they might receive an additional 180-day grace period. But the clock was definitely ticking for Meiwu.
Beyond the Compliance Victory
What makes this compliance announcement particularly interesting is that it coincides with a period of significant transformation for the company. Meiwu has pivoted dramatically from its original business model of online food sales and SMS services to focus entirely on the skincare industry through its subsidiary, Xiamen Chunshang Health Technology Co., Ltd.
This strategic transition appears to be gaining traction with investors. Just look at yesterday’s performance: WNW closed at $2.45, up an eye-popping 97.58% for the day. That’s the kind of movement that makes traders sit up and take notice.
However, after-hours trading showed some profit-taking, with the stock retreating 13.07% to $2.13. This volatility isn’t surprising for a small-cap stock that’s making significant business model changes.
What This Means for Investors
Regaining Nasdaq compliance removes a significant overhang for existing shareholders. The threat of delisting can create a negative feedback loop: investors sell to avoid getting caught in a delisting scenario, pushing the share price further down and making compliance even harder to achieve.
With this hurdle cleared, management can now focus on executing their skincare business strategy rather than constantly watching the ticker.
For potential investors, however, caution remains warranted. While the company has successfully pivoted to the skincare industry—a sector with attractive margins and growth potential—we’ll need to see sustained financial results that validate this strategic shift. The recent stock price surge might reflect optimism about the company’s new direction, but the fundamentals will ultimately determine whether that optimism is justified.
Looking Ahead
Investors should watch for upcoming earnings reports to gauge how successfully Meiwu is executing in the competitive skincare space. Key metrics to monitor include:
- Revenue growth from the skincare division
- Gross margins (premium skincare products typically command higher margins)
- Customer acquisition costs and retention rates
- Cash burn rate and path to profitability
The company’s British Virgin Islands incorporation and operations in China also introduce regulatory and geopolitical considerations that shouldn’t be overlooked.
The Bottom Line
Meiwu’s compliance victory and nearly 100% single-day stock price gain certainly make for an intriguing story. But as always in the small-cap world, due diligence is essential. The removal of delisting pressure is undoubtedly positive, but sustainable business performance will ultimately determine whether WNW represents a legitimate turnaround story or just a temporary compliance relief rally.
For risk-tolerant investors interested in the skincare industry and emerging market exposure, WNW might be worth adding to a watchlist—but proceed with appropriate position sizing and a clear understanding of the risks involved.
Disclosure: The author does not hold positions in any stocks mentioned. This analysis is for informational purposes only and should not be considered investment advice.
