Republic Power Group Limited (RPGL) received a Nasdaq bid‑price deficiency notice on January 7, 2026, after its Class A ordinary shares fell below the required $1.00 minimum bid price for 30 consecutive business days. The notice, which RPGL disclosed publicly on the same day, states the company is no longer in compliance with Nasdaq Listing Rule 5550(a)(2) and must regain compliance by July 6, 2026.
To restore compliance, RPGL must maintain a closing bid price of at least $1.00 for 10 consecutive business days. The company may also seek an additional 180‑day extension if it meets other listing standards and submits a written notice of intent to cure the deficiency, potentially through a reverse stock split. Shareholders approved a broad share‑consolidation authorization on December 31, 2025, allowing the board to implement a reverse split ranging from 1‑for‑2 to 1‑for‑100 until December 31, 2026, which could help RPGL meet the bid‑price requirement while respecting Nasdaq’s updated rules that limit the use of reverse splits to reset compliance periods.
RPGL’s bid‑price deficiency follows a prior Nasdaq delinquency letter issued in November 2025 for failing to file its 2025 Form 20‑F. The company’s financial profile shows a market capitalization of roughly $10.6 million, a gross profit margin of 79.2 %, and a cash‑to‑debt ratio that indicates more cash than debt. Despite profitability over the past year, RPGL’s stock has declined by about 90 % since its October 2025 IPO, underscoring a disconnect between the company’s underlying financial health and market valuation.
The bid‑price deficiency signals significant investor confidence concerns and liquidity challenges. While RPGL’s strong margins and cash position suggest operational resilience, the sustained sub‑$1 bid price raises questions about the market’s perception of the company’s growth prospects and the effectiveness of its capital‑raising strategy. Management’s plan to pursue a reverse split reflects an attempt to address the listing requirement, but the move may be viewed as a cosmetic fix rather than a substantive improvement in the company’s fundamentals.
The notice also highlights the broader compliance risk facing RPGL, as the company must simultaneously address the bid‑price deficiency and the late filing of its annual report. Failure to meet either requirement could trigger further Nasdaq action, potentially leading to delisting or additional penalties, which would materially affect the company’s ability to access capital markets and maintain investor confidence.
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