Shares of Society Pass Inc. (NASDAQ: SOPA) dropped about 19% in premarket activity on Wednesday after receiving formal notice from Nasdaq that the exchange had determined to delist the company’s common stock.
The Nasdaq action follows Society Pass’s voluntary Chapter 11 bankruptcy filing. On May 12, 2026, Society Pass and its wholly-owned subsidiary, SoPa Inc., submitted voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code to the United States Bankruptcy Court for the Southern District of Texas.
Two days later, on May 14, 2026, Nasdaq’s Listing Qualifications Department informed the company that it had reached a determination to delist the common stock. Nasdaq cited Listing Rules 5101, 5110(b), and IM-5101-1 in concluding that Society Pass is not suitable for continued listing as a consequence of the Chapter 11 proceedings.
Society Pass has signaled that it intends to pursue an appeal of Nasdaq’s delisting determination.
Under the exchange’s timetable, trading in Society Pass common shares will be suspended at the opening of business on May 21, 2026. Following the suspension, Nasdaq will file a Form 25-NSE with the Securities and Exchange Commission to remove the common stock from listing and registration on the exchange.
Context and procedural steps
- The company filed voluntary Chapter 11 petitions on May 12, 2026, in the U.S. Bankruptcy Court for the Southern District of Texas.
- Nasdaq provided formal notice of a delisting determination on May 14, 2026, invoking specific listing rules related to suitability when a company is subject to Chapter 11.
- Trading suspension is scheduled to take effect at market open on May 21, 2026, with a subsequent Form 25-NSE filing to remove listing and registration.
Market reaction
The market reacted quickly to Nasdaq’s notice, with premarket trading showing a near 19% decline in the company’s shares. The announcement of a pending trading suspension and the prospect of removal from listing typically prompt immediate reassessments by investors, as evidenced by the price movement.
What remains unsettled
- The outcome of Society Pass’s stated intention to appeal Nasdaq’s determination is not yet known.
- Following the scheduled suspension and the filing of Form 25-NSE, the timing and mechanics of any post-delisting trading or transfer of shareholder holdings remain to be determined through the appeal process and bankruptcy proceedings.