SCWorx Corp. (WORX): Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
SCWorx Corp. (WORX) filed an SEC Form 8-K — Other Events. Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. Summary Company Completed Offering to Cure Nasdaq Publicly Held Shares Deficiency and Submitted Request for Reconsideration; Common Stock Continues to Be Quoted on OTCQB
How this was made
The 30-second read
Why it matters
The company completed a private placement intended to cure the publicly held shares shortfall and requested reconsideration of the Panel’s delisting decision, but the Panel decision remains pending and Nasdaq delisting mechanics are described as likely after appeal periods lapse.
Market read
Traders should focus on listing-status probability, liquidity expectations on OTCQB, and the remaining compliance timeline tied to the Oct. 5 $1.00 bid-price test.
What to watch
Even with reconsideration, the company still must meet the $1.00 closing bid price for 10 consecutive trading days by Oct. 5, and the stock is already suspended on Nasdaq, which can depress liquidity and make compliance harder.
Background
WORX has been suspended on Nasdaq since April 14, 2026, and previously used a 1-for-12 reverse split to address the bid-price rule, but that action triggered a publicly held shares deficiency.
Ticker impact
SCWorx says it cured Nasdaq’s publicly held shares deficiency via a Sept. 16 private placement, but the Nasdaq Hearings Panel still ordered delisting pending reconsideration.
Elevated volatility likely, with downside skew if reconsideration fails or if Oct. 5 bid-price compliance is not met; OTCQB quotation may cap liquidity but not remove headline-driven moves.
The filing centers on a delisting decision, a pending reconsideration request, and a specific remaining compliance hurdle (10 consecutive days with a $1.00 close by Oct. 5).
Market effects
Limited direct sector read-across, but it highlights ongoing Nasdaq compliance fragility for microcaps reliant on reverse splits and equity raises.
Primarily US microcap liquidity and listing-status risk; may affect OTCQB trading flows for similar issuers.
Low; this is a US exchange listing compliance event.
Counterpoint
If the Panel accepts the “mistake of material fact” argument that the private placement was completed before the delisting decision, the delisting risk could fade quickly and the stock could re-rate on renewed Nasdaq prospects.
Key entities
- companySCWorx Corp.
Nasdaq-listed issuer currently quoted on OTCQB, facing delisting risk and seeking reconsideration based on a completed private placement.
- regulatorNasdaq Hearings Panel
Issued a delisting decision, stating the reverse split caused failure to meet the publicly held shares rule.
- regulatorNasdaq Listing Qualifications Staff
Issued an additional staff determination letter noting the publicly held shares deficiency after the reverse split.