Bon Natural Life says Nasdaq closed bid price matter, with one-year panel monitor

The notice

Bon Natural Life Limited (Nasdaq: BON) reported in a Form 6-K for August 2025 that it had received notice from the Nasdaq Hearings Panel that it had regained compliance with Listing Rule 5550(a)(2), the bid price rule. The company says the Panel also advised that it will be subject to a one-year Discretionary Panel Monitor. The 6-K refers to an earlier 6-K filed with the SEC on July 11, 2025, in which the same panel decision was first reported.

On July 29, 2025, the company received notification from The Nasdaq Stock Market LLC confirming the Panel's decision and stating that the matter is now closed. The filing is signed by Yongwei Hu, the company's chairman and chief executive officer, and dated August 4, 2025. It gives the company's principal executive offices as Room 601, Block C, Gazelle Valley, No. 69, Jinye Road, High-Tech Zone, Xi'an, Shaanxi, China.

The 6-K is short. It does not give the company's bid price, the share price on which compliance was judged, the number of days over which compliance was reached, or the date the company first received a deficiency notice. A reader cannot trace the path from deficiency to compliance from this document alone.

What the monitor means

The filing says the company will be subject to a one-year Discretionary Panel Monitor. It does not describe the monitor's terms or say what the company must do during that period, and it does not say when the year starts. The company's own description is limited to the closing of the matter.

The 6-K does not state a plan for keeping the bid price above the Nasdaq minimum, and it does not say whether any corporate action, such as a share consolidation, is planned. The panel decision and the closing notice came in July 2025, and the August 6-K reports them after the fact. The July 11 filing is where the decision was first reported.

The company behind the listing

The company's annual report on Form 20-F says it began its natural products and ingredients business through Xi'an App-Chem Bio(Tech) Co., Ltd., a Chinese corporation formed in April of 2006. Bon Natural Life Limited was incorporated in the Cayman Islands on December 11, 2019 as an offshore holding company to facilitate financing and offshore listing. The report describes a holding structure that runs from the Nasdaq-listed parent through a Hong Kong company, Tea Essence, and a wholly foreign-owned enterprise to its domestic operating entities in China.

The report says the company closed its initial public offering on June 28, 2021, selling 2,200,000 ordinary shares at a public offering price of $5.00 per share. Its shares started trading on the Nasdaq Capital Market under the ticker "BON" on June 24, 2021. Gross proceeds, including the over-allotment shares, totaled $12.65 million before underwriting discounts and other expenses, and net proceeds were approximately $11.3 million.

The same report says the company does not expect to pay cash dividends. It intends to use earnings for research and development, new products and expanded production capacity. It also says that its Chinese subsidiaries may pay dividends only out of accumulated profits, if any, and must set aside at least 10% of after-tax profits each year, if any, into statutory reserves until those reserves reach half of registered capital. Those reserves are not distributable as cash dividends. The report adds that a withholding tax of 10% applies to dividends payable by Chinese companies to non-PRC-resident enterprises, which may be reduced to 5% for a Hong Kong recipient, though it says there is no assurance the reduced rate will apply.

What the filing does not say

The 6-K gives no revenue figure, no net loss figure and no cash balance. It does not describe the company's business activities during the period, and it does not state the number of ordinary shares outstanding. A reader cannot tell from the filing how far the company was from the bid price threshold at its low point.

The monitor is the key fact in the filing, and the filing leaves its terms open.

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