Nasdaq will suspend Direct Digital shares at Monday's open

Nasdaq will suspend trading in Direct Digital Holdings' Class A shares at Monday's open after the company failed to regain compliance with the exchange's minimum stockholders' equity rule.

The stock trades as DRCT.

Direct Digital disclosed the decision in a Form 8-K accepted at 4:03 p.m. Friday. The company may appeal within 15 days, and Nasdaq's Listing Council may independently review the decision within 45 days. The filing does not say an appeal would keep the shares trading on Nasdaq.

Nasdaq is expected to file a Form 25 to complete the delisting. Direct Digital expects its shares to begin trading on OTC Markets' Pink Limited Information tier under the same ticker after the suspension.