Cheer Holding’s delisting drama: Can the Chinese tech platform save its U.S. listing?

Why did Nasdaq initiate the delisting process against Cheer Holding and what is the deadline to appeal?

Cheer Holding Inc. (NASDAQ: CHR), a Chinese internet and technology firm with ambitions to build a multi-platform digital ecosystem, is now facing imminent delisting from the Nasdaq Capital Market after its Class A ordinary shares remained below the critical $0.10 price threshold for 10 consecutive trading sessions. On November 18, 2025, the Nasdaq Stock Market LLC issued a formal delisting determination letter, placing the company on an accelerated path toward trading suspension unless it submits a timely request for a hearing before the Nasdaq Hearings Panel.

The company has been given until November 26, 2025, to file its appeal. If no hearing is requested within the specified window, Nasdaq has indicated that trading in Cheer Holding’s securities will be suspended beginning December 1, 2025, followed by a delisting through the formal submission of Form 25-NSE to the Securities and Exchange Commission.

The notice cites violations under Nasdaq Listing Rule 5810(c)(3)(A)(iii), triggered when a company’s bid price closes at or below $0.10 for ten consecutive business days. This rule is more severe than the commonly known $1 minimum bid requirement outlined under Nasdaq Listing Rule 5550(a)(2), which typically allows a 180-day cure period. Cheer Holding had already breached that standard earlier in 2025 and was placed on a compliance timeline. The $0.10 threshold, however, results in immediate escalation, as it signals extreme market devaluation and triggers regulatory protections meant to uphold listing quality on the exchange.

What recent trading behavior led to this outcome and how has market performance worsened?

The delisting process is a direct consequence of Cheer Holding’s sharply deteriorating stock performance over the past several weeks. As of market close on November 21, the company’s shares were trading at just $0.0525, having opened at $0.0505 and fluctuated between an intraday low of $0.04 and a high of $0.0549. Daily volumes spiked past 42 million shares, underscoring intense speculative activity amid the compliance uncertainty.

This steep price erosion represents a collapse of over 50 percent within a 30-day window. The stock has consistently remained below $0.10 since early November, breaching the psychological penny-stock barrier and placing the firm squarely in non-compliance territory. While such low-priced stocks often attract short-term retail momentum traders, Nasdaq’s regulatory rules require that stocks maintain minimum pricing levels to ensure adequate liquidity, orderly trading, and investor protection.

Over time, a sustained share price below $1 can be tolerated if corrective actions are underway. However, closing at or below $0.10 is treated as a failure to meet even the most basic listing criteria, and is often viewed by investors and analysts as a red flag that underlying business operations are either deeply challenged or no longer viable under market conditions.

What options are available to Cheer Holding to prevent delisting from Nasdaq?

In response to the determination notice, Cheer Holding has announced its intent to request a hearing with the Nasdaq Hearings Panel before the November 26 deadline. This step is a procedural safeguard that could temporarily delay the delisting and grant the company an opportunity to present a corrective compliance plan. However, the success of such hearings depends heavily on the credibility of the company’s proposed strategy and its ability to demonstrate a near-term pathway back to compliance.

One immediate recourse available to the firm is the execution of a reverse stock split, which would consolidate shares and boost the per-share trading price above the required minimum. Cheer Holding’s shareholders had already approved such a consolidation at the company’s annual general meeting held on May 12, 2025, providing management with the legal authority to implement the measure if needed.

Reverse stock splits are commonly used by micro-cap and small-cap companies to regain Nasdaq compliance quickly. However, analysts caution that such maneuvers do not resolve fundamental issues related to business model weakness, market traction, or investor confidence. In many cases, a reverse split that is not accompanied by operational improvement can lead to further erosion of shareholder value, as it may be perceived as a desperate move rather than a strategic fix.

How does Cheer Holding position its business and what are the core segments under scrutiny?

Cheer Holding has marketed itself as a next-generation internet and technology provider in China. The company claims to be building a digital ecosystem that integrates technologies such as 5G, virtual reality, augmented reality, and artificial intelligence. Its product portfolio includes offerings like CHEERS Telepathy, CHEERS Video, CHEERS e-Mall, and CHEERS Chat, which are positioned across social networking, e-commerce, and intelligent communication platforms.

Despite this futuristic pitch, Cheer Holding has struggled to demonstrate significant commercial traction or top-line growth that would validate its platform approach. Publicly disclosed financials and operational updates have been limited, and there is little evidence of revenue scale, geographic expansion, or material B2B adoption that would typically underpin investor interest in a tech-focused digital ecosystem.

When benchmarked against other U.S.-listed Chinese digital firms such as Bilibili, iQIYI, or JOYY, Cheer Holding’s scale and visibility remain small. Those peers, while also facing market pressure, have maintained broader user bases, more robust monetization pipelines, and better liquidity profiles. The disparity highlights Cheer Holding’s limited investor engagement and weaker strategic narrative.

What are institutional investors and retail traders watching most closely?

Investor sentiment around Cheer Holding remains decisively negative. With the stock entrenched in sub-$0.10 territory and approaching delisting, large institutions appear to be sidelined. There has been no visible insider buying or large institutional accumulation in recent weeks, suggesting a lack of confidence in the firm’s ability to mount a credible turnaround.

Retail traders, on the other hand, have shown heightened activity, likely driven by volatility and speculative interest. While this may inflate short-term volumes, it does little to stabilize valuation or restore long-term credibility. Analysts tracking small-cap tech firms in regulatory distress generally caution that even if a company executes a share consolidation and survives delisting, the stigma of non-compliance and shareholder dilution can weigh on the stock for months afterward.

The appeal hearing could offer a reprieve, but only if it is accompanied by clear and executable action. Investors will be looking for specific details on when the reverse split will be enacted, whether the company has a plan to drive platform engagement or new monetization channels, and if external funding or partnerships are being pursued to improve liquidity and business continuity.

What happens if the delisting goes through and what are the broader implications for the company?

If Cheer Holding fails to secure a favorable outcome from the Nasdaq Hearings Panel, its shares will be suspended from trading on Nasdaq starting December 1, 2025, and will subsequently be removed from the exchange entirely. At that point, the stock would likely migrate to the over-the-counter (OTC) market, where trading volumes tend to be lower, price discovery is weaker, and access to capital is significantly constrained.

Delisting can have a profound impact on a company’s reputation, particularly for international firms seeking validation through U.S. capital markets. For Cheer Holding, which has staked its identity on being a forward-looking tech innovator with cross-border ambitions, a Nasdaq delisting could damage its relationships with vendors, investors, and potential partners across Asia and North America.

Access to equity capital would also be curtailed. Shelf offerings, pre-funded warrant placements, or convertible notes become more difficult to execute on OTC markets, especially when trading volatility spikes and institutional trust declines. For a company already operating in a high-burn, high-tech segment, loss of funding access could accelerate operational instability.

What comes next and how might the next 30 days define Cheer Holding’s future?

All critical developments now hinge on the upcoming deadlines. November 26 marks the final day for Cheer Holding to request its hearing. If it files the request, trading will likely continue temporarily while the hearing is scheduled and the company presents its case. If it fails to do so, trading suspension becomes automatic, and the delisting process is irreversible.

Market participants will monitor the company’s investor relations communications closely for announcements about a reverse stock split execution, potential capital raises, or product roadmap updates. Without a material catalyst, either operational or financial, the path forward for Cheer Holding may be limited to de-listing and gradual liquidation of shareholder value in the OTC ecosystem.

From an institutional lens, the narrative is now less about platform vision and more about survival mechanics. The company’s next move—within days—will either stabilize the situation or confirm broader market concerns that its business model lacks resilience in the face of capital market scrutiny.

What are the key takeaways from Cheer Holding’s Nasdaq delisting notice and compliance risk?

• Cheer Holding Inc. (NASDAQ: CHR) received a formal delisting determination from Nasdaq on November 18, 2025, after its stock traded at or below $0.10 for 10 consecutive sessions.

• The company violated Nasdaq Listing Rule 5810(c)(3)(A)(iii) and had previously breached the $1.00 minimum bid price requirement under Rule 5550(a)(2).

• Unless Cheer Holding requests a hearing before the Nasdaq Hearings Panel by November 26, 2025, its shares will be suspended from trading on December 1 and delisted via Form 25-NSE.

• The company intends to appeal the delisting and has shareholder approval to execute a reverse stock split, which could help boost its trading price above compliance levels.

• Despite branding itself as a Chinese digital ecosystem innovator across 5G, VR, and AI, Cheer Holding has struggled to generate meaningful revenue or investor confidence.

• As of November 21, the stock was trading at $0.0525 with heightened speculative volume, down significantly from earlier in the year.

• Institutional sentiment is weak, and analysts suggest that without a fundamental operational turnaround, a reverse split may not restore long-term credibility.

• A Nasdaq delisting could limit Cheer Holding’s access to capital markets, damage its cross-border tech positioning, and shift trading to OTC platforms with reduced liquidity.

• The next critical catalyst is whether the company follows through with its hearing request and outlines a viable compliance roadmap within days.

• Investors will monitor for execution of the share consolidation, new funding announcements, and operational updates that could influence sentiment going forward.