Cycurion (CYCU) Stock: Plunges 10.6% Amid Delisting Threat and Reverse Split Plan

Cycurion appeals Nasdaq delisting after falling below $1 bid price.
Nasdaq issues delisting notice; company faces tough compliance battle.
A 30-for-1 reverse stock split aims to lift Cycurion’s share price.
Appeal delays delisting as Cycurion fights to stay on Nasdaq.
Failure to comply may push Cycurion shares to OTC market trading.

Cycurion, Inc. (CYCU) closed down 10.60% on October 20, falling to $0.2512 per share.

Cycurion, Inc. Common Stock, CYCU

The decline followed a delisting determination by Nasdaq, which issued the notice on October 14 due to non-compliance with the $1.00 bid price rule. The company’s inability to meet the minimum requirement triggered a 180-day compliance window that ended on October 6.

After missing the deadline, Cycurion now faces the risk of removal from the Nasdaq Global Market. The company must file an appeal by October 21 to delay delisting. If not appealed or if the appeal fails, Nasdaq will proceed with a Form 25-NSE filing by October 23.

In response, Cycurion formally submitted its appeal to the Nasdaq Hearings Panel on October 20. The appeal automatically halts the delisting process and trading suspension until the panel makes its decision. Hearings typically take place within 30 to 45 days of the filing date.

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Company Moves Ahead With Reverse Stock Split

To address its bid price shortfall, Cycurion plans to implement a 30-for-1 reverse stock split effective October 27. This action was approved by the board on October 10 and follows prior shareholder approval granted on September 29. The move aims to lift the stock price above Nasdaq’s $1.00 minimum threshold.

The reverse split will consolidate every 30 existing shares into one, increasing the per-share value while reducing the total share count. The company’s September filing with the SEC allowed a reverse split ratio ranging between 3:1 and 75:1. The final 30:1 ratio was chosen to help regain compliance without excessively reducing float.

Executing the split does not guarantee Nasdaq compliance unless the bid price remains above $1.00 for ten consecutive trading days. Cycurion must also meet all other Nasdaq listing criteria during this period. Failure to do so could still result in delisting, regardless of the split.

Potential Shift to Over-the-Counter Market Looms

If the appeal fails or the stock fails to regain compliance, Cycurion expects its shares to move to the over-the-counter market. This market offers limited visibility, reduced liquidity, and weaker pricing support compared to Nasdaq’s structured platform. Trading volume could drop significantly, and share price may decline further.

Cycurion noted there is no assurance that shares will remain publicly quoted after a delisting. Broker-dealers may cease publishing bids, and trading could become sporadic or inefficient. The firm emphasized that maintaining a Nasdaq listing remains a key goal to support shareholder value and public credibility.

Virginia, Cycurion specializes in cybersecurity, program management, and business continuity. The firm operates through subsidiaries including Axxum Technologies, Cloudburst Security, and Cycurion Innovation. It serves public and private sector clients across critical infrastructure domains.

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