Avalon Secures Nasdaq Listing Amid Aggressive Pivot to Generative AI

FREEHOLD, NJ – January 12, 2026 – Avalon GloboCare Corp. (NASDAQ: ALBT) announced today it has successfully regained compliance with Nasdaq's minimum stockholders' equity requirement, securing its place on the exchange and averting a potential delisting. While the news provides a dose of stability, it arrives as the diversified company undertakes a dramatic strategic pivot into generative artificial intelligence, all while a transformative merger that could fundamentally reshape its entire corporate structure looms on the horizon.

In a statement, the company confirmed that The Nasdaq Stock Market LLC has withdrawn its delisting determination, cancelling a previously scheduled hearing. This allows Avalon’s common stock to continue trading on the Nasdaq Capital Market without interruption.

“We are pleased to have regained compliance with Nasdaq’s minimum stockholders’ equity requirement, reflecting the progress we have made in strengthening our financial position and our continued focus on long-term shareholder value,” said Meng Li, Avalon’s Interim Chief Executive Officer and Chief Operating Officer. “With full Nasdaq compliance restored, we believe we are well positioned to execute on our growth initiatives, including launching marketing for our generative AI video platform, as well as expansion across precision diagnostics and strategic assets.”

A Precarious Path to Compliance

The announcement marks the end of a precarious period for Avalon. The company had been navigating Nasdaq compliance challenges for over a year, having previously addressed a minimum bid price deficiency in late 2024. The more recent threat stemmed from its failure to meet the $2.5 million minimum stockholders' equity requirement under Nasdaq Listing Rule 5550(b).

Company filings reveal the extent of the financial strain. The quarterly report for the first quarter of 2025, filed in May, showed a negative stockholders' equity of nearly $3.9 million. By the second quarter of 2025, the situation had intensified, with the company reporting a net loss of almost $16 million and its own filings citing “substantial doubt about the company’s ability to continue as a going concern.”

A pivotal, and complex, move to remedy the equity deficit came in December 2025 with the acquisition of generative AI software firm RPM Interactive. The $19.5 million transaction was not paid in cash but through the issuance of 19,500 shares of newly created Series E Non-Voting Convertible Preferred Stock. This maneuver effectively boosted the company's balance sheet, pushing its stockholders' equity above the Nasdaq threshold and resolving the compliance issue.

From Breathalyzers to AI Video: A Strategic Overhaul

Concurrent with its financial stabilization, Avalon is charging into the booming AI sector. The acquisition of RPM Interactive has been folded into a new subsidiary, Avalon Quantum AI, LLC, which is now launching marketing for its flagship product: an automated generative AI video platform named “Catch-Up.”

This Software-as-a-Service (SaaS) platform is designed to automatically create recap-style videos for content creators and media companies by sourcing clips, generating AI commentary, and creating on-screen avatars. The move marks a significant departure from Avalon’s eclectic existing portfolio, which includes:

• Precision Diagnostics: The company markets the KetoAir™, an FDA-registered Class I breathalyzer for monitoring metabolic health, and has launched sales in the U.S. and UK.
• Cellular Therapy: Avalon holds intellectual property in advanced cell therapies, including a recently granted Hong Kong patent for its CAR-T and CAR-NK cell technology aimed at treating blood cancers.
• Commercial Real Estate: A steady, if modest, revenue stream comes from owning and operating a commercial property in New Jersey, which reported a 96.2% occupancy rate as of mid-2025.

The stark contrast between these established life science and real estate assets and a cutting-edge AI video platform raises questions about strategic synergy. While the company states it will use the AI to market KetoAir™, the primary business model for Catch-Up appears to be licensing it to external media clients, placing Avalon in a completely new and highly competitive market against established AI video players.

The Elephant in the Room: The YOOV Merger

Buried beneath the headlines of Nasdaq compliance and AI ambitions is a far more transformative event: a proposed merger with YOOV Group Holding Limited. Avalon entered into a definitive merger agreement in March 2025 with YOOV, a provider of AI-as-a-Service (AIaaS) business automation solutions.

If approved by stockholders, the transaction would essentially be a reverse merger. YOOV would merge into Avalon, but the combined entity would operate as YOOV, Inc. and trade on Nasdaq under the new ticker “YOOV.” Crucially, YOOV’s equity holders are expected to own between 97.5% and 97.8% of the new company. Avalon’s current equity holders would be left with a small fraction, approximately 2.2% to 2.5%, of the combined entity.

YOOV brings significant financial muscle to the table. For the 2024 calendar year, it reported unaudited revenue of $45.7 million and a net income of $3.4 million—a stark contrast to Avalon’s history of losses. This proposed transaction reframes Avalon’s recent activities not just as diversification, but potentially as a strategic maneuver to maintain its public listing as a vehicle for the larger, more profitable YOOV to enter the U.S. public market.

A Skeptical Market Reaction

Despite the positive spin, the market's reception to Avalon's recent strategic moves has been decidedly cool. Following the announcement of the $19.5 million RPM Interactive acquisition in December, Avalon's stock plunged nearly 25%. Similarly, the stock fell over 8% in trading today on the news of its regained Nasdaq compliance.

This pattern suggests deep investor skepticism. While the moves into AI are ambitious, the all-stock nature of the acquisition and the massive potential dilution from the pending YOOV merger appear to be weighing heavily on investor sentiment. With the stock having lost over 65% of its value in the past year, the market seems to be signaling that it needs to see tangible growth and a clear, cohesive strategy before buying into the company's complex transformation. For now, Avalon has bought itself more time on Nasdaq, but its ultimate identity and future value remain profoundly uncertain.