Adamas One Notified of Non-Compliance with Nasdaq Listing Rule 5550(a)(2)

Adamas One Corp. (Nasdaq: JEWL), renowned as The Original Lab-Grown Diamond Company™, specializing in advanced technology to create premium, single-crystal Lab-Grown Diamonds for both jewelry and industrial applications, has disclosed today that it received a notification from the Listing Qualifications Department of the Nasdaq Stock Market (“Nasdaq”) on October 12, 2023. The notification outlined the company’s noncompliance with Nasdaq Listing Rule 5550(a)(2) due to its failure to maintain a minimum bid price of $1.00 per share for its common shares over 30 consecutive business days.

Initially granted a grace period of 180 days until April 9, 2024 (the “Compliance Period”) to rectify this noncompliance, Adamas One aimed to achieve a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days during this period.

However, as of April 11, 2024, Adamas One received notification of its failure to meet the compliance requirement. Moreover, the company is ineligible for a second 180-day compliance period due to its inability to meet the $5 million minimum stockholders’ equity initial listing requirement by December 31, 2023.

Unless the company requests a hearing before an independent Nasdaq Hearings Panel (“Panel”) in a timely manner, its securities face potential delisting. Adamas One intends to pursue a hearing before the Panel, which would temporarily halt any suspension or delisting action pending the hearing’s outcome and any further extension period granted by the Panel, with a potential expiration as late as October 8, 2024, in accordance with Nasdaq Listing Rules.

During the hearing, Adamas One will present a plan outlining its strategy to regain compliance with the Rule and request the continuation of listing its common shares on Nasdaq during this period of pursuit. However, the outcome is uncertain, and there is no guarantee that the Panel will grant the company’s request or that Adamas One will ultimately fulfill all requirements for continued listing on Nasdaq.

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