Envoy Medical asks Nasdaq panel to review delisting determination on market value rule

Envoy Medical, Inc. (Nasdaq: COCH) said on August 29, 2025 that Nasdaq has determined the company did not regain compliance with the minimum market value of listed securities requirement, and that it has asked a Nasdaq Hearings Panel to review the decision. The company reported the delisting determination in a Form 8-K under Item 3.01. Its hearing request stays any trading suspension until the panel meets and rules. Brent Lucas, Chief Executive Officer, signed the filing.

What Nasdaq decided

On February 25, 2025, Envoy received a deficiency letter from The Nasdaq Stock Market. It said the company was not in compliance with Nasdaq Listing Rule 5550(b)(2) because the market value of its listed securities did not meet the minimum of $35,000,000 (the MVLS Requirement). The shortfall covered 30 consecutive business days between January 7, 2025 and February 24, 2025. The letter gave the company a 180-day period to become compliant.

On August 26, 2025, Envoy received a determination letter from Nasdaq saying it had not regained compliance within that cure period. The letter said the company could request a hearing before a Hearings Panel by September 2, 2025, to explain how it expects to regain compliance and why the panel should grant an extension. Without a request, trading in the company's securities would have been suspended at the opening of business on September 4, 2025.

The hearing request

Envoy submitted its hearing request on August 29, 2025. The filing says the request itself stays any trading suspension and any filing of a Form 25-NSE until the Panel meets and issues a decision. A Form 25-NSE is the form an exchange files with the SEC to remove a security from listing.

The company says it is optimistic it can show the Panel several viable, relatively near-term pathways to regain compliance. As one example it cited the recent resetting of its balance sheet, including the full extinguishment of its debt. The filing also warns that there can be no assurance the Panel will grant continued listing or an extension.

Risks the company lists

The forward-looking statements section names several uncertainties. They include whether Envoy can cure the MVLS deficiency or meet other Nasdaq rules, whether it can win its appeal before the Panel, and whether Nasdaq grants additional compliance periods. The company also points to the substantial costs and diversion of management's attention and resources that these matters bring.

The business behind the listing

Envoy describes itself in its annual report, filed March 31, 2025, as a hearing health company. Its first product, the Esteem fully implanted active middle ear implant, received FDA approval in 2010. The report says the device failed to gain commercial traction, primarily because the Centers for Medicare and Medicaid Services classified it as a hearing aid and therefore not eligible for coverage. At an average total price of over $25,000 for device and surgery, very few people could pay out of pocket. The report says roughly 1,000 devices were implanted globally.

In late 2015 the company shifted its focus to the Acclaim CI, a fully implanted cochlear implant that uses its sensor technology. The Acclaim CI is an investigational device, and the annual report says it is limited by federal law to investigational use. The annual report also says the company's audited financial statements as of December 31, 2024 contain an explanatory paragraph regarding substantial doubt about its ability to continue as a going concern, which it says could limit its ability to raise money through equity or debt. The company also lists as a risk that it has generated limited revenue from product sales and may never be profitable. The business combination with the blank-check company Anzu Special Acquisition Corp I was completed in September 2023.

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