Founder Group Limited (Nasdaq: FGL) received a letter from the Nasdaq Listing Qualifications Department on February 17, 2026, notifying the company that it no longer meets the 500,000 publicly held share requirement under Nasdaq Listing Rule 5550(a)(4) for the Nasdaq Capital Market. The company disclosed the letter on February 20, 2026 and stated that it will submit a plan to restore compliance by the April 3, 2026 deadline.
The Nasdaq rule requires a minimum public float of 500,000 shares. Failure to meet this threshold triggers a delisting process unless the company demonstrates a viable path to compliance. FGL’s plan must address the shortfall and show how it will maintain the required float for the foreseeable future, or it risks removal from the Nasdaq Capital Market, which would reduce liquidity and market visibility for shareholders.
Founder Group is a pure‑play EPCC (Engineering, Procurement, Construction, and Commissioning) provider for solar photovoltaic projects in Malaysia, focusing on large‑scale and commercial‑industrial installations. The company has a history of Nasdaq compliance challenges, having received a separate notification in November 2025 for a minimum bid‑price deficiency that was remedied with a 100‑for‑1 share combination announced February 6, 2026. The recurrence of regulatory issues underscores the need for a robust compliance strategy.
Financially, the company reported $27.39 million in revenue and a net loss of $1.27 million for the last 12 months, translating to a loss per share of $6.69. Its debt‑to‑equity ratio stands at 3.67, indicating significant leverage. These figures illustrate the company’s modest scale and financial strain, factors that likely contributed to the public float deficiency and raise concerns about its ability to meet Nasdaq’s listing standards.
Market reaction to the notification was muted. After the announcement, the stock traded at $12.03 with a volume of 85.16 k shares, and after‑hours trading showed a 0.09% increase to $10.28. The limited price movement reflects investor caution, given the company’s prior compliance issues and the potential for a delisting event.
The Nasdaq letter places Founder Group at a critical juncture. A successful compliance plan could preserve its Nasdaq listing and maintain investor confidence, while failure to meet the April 3 deadline would trigger delisting, eroding liquidity and potentially depressing shareholder value. The company’s intent to submit a plan signals proactive management, but the recurring nature of its regulatory challenges suggests that the plan will need to address both the public float shortfall and the underlying financial and operational risks that have historically impeded compliance.
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