Founder Group Limited (FGL) received a letter from Nasdaq on November 6 2025, and the company disclosed the notice to the public on November 12 2025. The letter states that FGL’s Class A ordinary shares have failed to maintain the required minimum bid price of $1.00 per share over the preceding 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
Nasdaq has granted FGL a 180‑day compliance period that ends on May 5 2026. If the company can meet other listing standards—such as a market value of publicly held shares and a written notice of its intention to cure the deficiency—it may be eligible for an additional 180‑day extension. A reverse stock split is one option the company is evaluating to raise the bid price, but Nasdaq requires that any split be approved and that the company still satisfy all other listing requirements.
FGL is a pure‑play engineering, procurement, construction, and commissioning (EPCC) provider for solar photovoltaic projects in Malaysia, focusing on large‑scale and commercial‑industrial installations. The company went public on October 22 2024 at $4.00 per share, but the stock has since collapsed to a 52‑week low of $0.285. Financial analysis shows negative operating and net margins, a high debt‑to‑equity ratio, and a low Altman Z‑score, placing the firm in a distress zone. These financial pressures have contributed to the sustained low bid price that triggered the Nasdaq notice.
The potential delisting carries significant implications. Removal from the Nasdaq Capital Market would curtail liquidity, erode investor confidence, and limit the company’s ability to raise capital through equity markets. A reverse split, while potentially restoring the bid price, may be perceived as a sign of financial distress and could further dampen market sentiment. Nasdaq’s rules also mean that even if a split is executed, the company must still meet other listing criteria to avoid a second deficiency.
Management has stated that it is actively exploring options to regain compliance and intends to act promptly. No specific plan—such as the exact split ratio or a detailed timeline—has been disclosed, but the company’s communications emphasize a commitment to meeting the 180‑day deadline.
While the market has not yet reacted to the notice, the stock’s prolonged decline and the regulatory warning suggest heightened investor concern. The deficiency underscores the company’s ongoing financial challenges and the risk that it may not be able to maintain its Nasdaq listing without significant operational or financial restructuring.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.