Founder Group Limited (FGL) regained compliance with Nasdaq’s minimum bid‑price requirement on February 25 2026 after a 100‑for‑1 reverse stock split that became effective on February 10. The reverse split increased the per‑share price, allowing the company’s closing bid price to meet the $1.00 minimum and removing the immediate threat of delisting from the Nasdaq Capital Market.
On February 17, Nasdaq notified FGL that it also failed to meet the 500,000 publicly held shares requirement. The company has until April 3 to submit a compliance plan, so the reverse split addresses only one of two regulatory deficiencies that could impact its listing status.
Financially, FGL posted a trailing‑twelve‑month net loss of $1.3 million, a net profit margin of –4.65 % and a return on equity of –35.33 %. In the half‑year ended June 30 2025, revenue was MYR 55.47 million and the company recorded a net loss of MYR 1.93 million. For the same period in 2024, revenue was MYR 30.44 million versus MYR 68.73 million a year earlier, and the company reported a net loss of MYR 1.71 million compared with a net income of MYR 2.64 million. These figures illustrate a persistent decline in revenue and ongoing profitability challenges.
Founder Group is a Malaysia‑based engineering, procurement, construction and commissioning (EPCC) provider for solar photovoltaic projects, focusing on large‑scale and commercial/industrial segments. The company secured a US$2.36 million contract for a 30 MW solar plant and raised $16.07 million through a convertible note with Streeterville Capital, providing short‑term liquidity to support its project pipeline and operational needs.
Regaining bid‑price compliance is a positive regulatory milestone, but it does not resolve the publicly held shares deficiency or the company’s underlying financial weakness. The continued losses and declining revenue signal operational challenges, while the reverse split and new financing offer temporary relief. Investors should monitor FGL’s plan to meet the publicly held shares requirement and its progress toward turning around profitability.
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