MSP Recovery Faces Nasdaq Delisting, Moves to Over-the-Counter Market

MSP Recovery US5537453087

MSP Recovery Inc. has been formally removed from the Nasdaq exchange, marking a significant downfall for the healthcare claims recovery firm. The company’s shares ceased trading on the Nasdaq Capital Market as of December 22, 2025, following a final rejection of its appeal by the Nasdaq Hearings Panel on December 18. This action enforces a transition to the OTCQB Venture Market, dealing a major blow to the former LifeWallet entity.

The delisting stems from MSP Recovery’s persistent inability to meet the exchange’s minimum continued listing standards. Specifically, the company failed to maintain stockholders’ equity of at least $2.5 million. Furthermore, its share price could not sustain the mandatory minimum bid price of $1.00. Attempts to comply via alternative standards—such as demonstrating a $35 million market capitalization or $500,000 in net income from continuing operations—were also unsuccessful.

Consequently, the equity will continue to be available for trading under the ticker symbol MSPR, but now on the OTCQB platform, a marketplace known for lower liquidity and reduced institutional investor participation.

A Steep Decline from Multi-Billion Dollar Beginnings

The financial metrics that precipitated this event reveal a company in severe distress. For the quarter ended September 30, 2025, MSP Recovery reported:
* Third-quarter revenue: A mere $198,000.
* Accumulated deficit: $878.6 million.
* Stockholders’ deficit: $128.4 million.
* Cash and cash equivalents: Approximately $1.8 million.

These figures starkly illustrate the impossibility of meeting Nasdaq’s equity requirement. The decline is historic: the company entered the public markets in 2022 via a SPAC merger with a pro-forma valuation of $32.6 billion. Its current market capitalization represents only a tiny fraction of that initial figure.

In a desperate effort to boost its stock price, management executed multiple aggressive reverse stock splits over the past two years. The most recent was a 1-for-7 split implemented on September 1, 2025. None of these measures succeeded in keeping the share price sustainably above the critical $1 threshold.

Navigating an Uncertain Over-the-Counter Future

In conjunction with the delisting, MSP Recovery has filed prospectuses related to the potential resale of shares by existing stockholders, including entities like Virage and Palantir Technologies. The company has also amended the terms for millions of outstanding warrants, many of which are rendered virtually worthless due to extremely high exercise prices.

The move to the OTCQB market typically ushers in challenges like wider bid-ask spreads and diminished visibility. For MSP Recovery, the immediate question is whether it can continue operations given its limited cash reserves and massive deficit. Upcoming quarterly financial results will be critical in assessing its viability. The company’s focus now shifts to survival in a far less prestigious trading environment.