The Nasdaq Listing Qualifications Department issued the determination on July 17, invoking rule IM-5101-4. This specific regulation grants the exchange discretionary power to delist securities when evidence suggests that external parties may be influencing stock prices, undermining the fairness of the market. The move stems from a broader regulatory scrutiny that initially saw the SEC suspend trading of the company’s stock on November 17, 2025, followed by a Nasdaq-imposed halt on December 2, 2025.

MaxsMaking, which produces customized consumer goods such as backpacks and textiles, intends to challenge the ruling. The company plans to request a hearing before an independent panel, a move that triggers an automatic stay on the delisting process. Despite this legal maneuver, the shares will remain frozen while the panel deliberates on the company's future on the exchange.