Yimutian Inc. (NASDAQ:YMT) stock is under intense pressure on Thursday after the Chinese agricultural digital service provider revealed significant listing deficiencies alongside a major equity registration update.

Double Nasdaq Violations Trigger Delisting Warning

According to a company release issued on Thursday, Yimutian received two separate regulatory warnings from the Nasdaq Listing Qualifications Department on May 13.

The exchange issued a Market Value of Listed Securities (MVLS) Deficiency Notice because the company failed to maintain the required minimum MVLS of $50 million between March 25 and May 6. Yimutian has until November 9, to rectify this issue.

Concurrently, Nasdaq handed the firm a formal determination letter stating that the company “is subject to delisting” after failing to meet the $15 million minimum market value of publicly held shares (MVPHS) requirement by the May 6 deadline.

To safeguard its trading position, the company stated, “The company will be filing an appeal, which will stay any further delisting proceedings through the hearing.”

While the appeal prevents immediate delisting from the Nasdaq Global Market, management warned retail traders that “there can be no assurances that the company would ultimately be able to regain compliance.”

Massive Dilution Looming From $10M Convertible Note

Compounding the regulatory panic, Yimutian filed a Form 424B3 prospectus supplement on Thursday. The filing outlines the potential resale of up to 42,307,692 American Depositary Shares (ADSs) by a selling shareholder.

These shares stem from the conversion of an aggregate principal amount of $10 million in senior convertible promissory notes issued under a December 8, agreement, threatening massive equity dilution for existing retail investors.

Critical Levels To Watch for Yimutian Stock

The stock is trading 57.6% below its 20-day SMA, 70.6% below its 50-day SMA, and 91.9% below its 100-day SMA. The 20-day SMA is also below the 50-day SMA.

Momentum is extremely stretched, with RSI at 21.62.

Zooming out, the 12-month performance (down 97.70%) and the slide from the 52-week high of $90.75 show how aggressive the longer-term unwind has been.

The most recent swing low was set in May, and with price now below the prior 52-week low of $1.10, the chart is in new lows territory where support levels can be less reliable.

YMT Price Action: Yimutian shares were down 13.09% at $0.97 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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