SRx Health Solutions Inc. (NYSE American: SRXH) received a public warning letter from NYSE Regulation Staff on February 18, 2026, which was disclosed on February 20, 2026. The letter cites violations of Sections 301 and 713 of the NYSE American Company Guide, specifically the failure to file a listing‑approval application for the issuance of common stock upon conversion of Series A Convertible Preferred Stock and the failure to obtain shareholder approval for an issuance that could exceed 20 % of the company’s outstanding common shares.
The preferred shares were issued on October 27, 2025, with stockholder written consent obtained on October 8, 2025. A listing application was filed on December 12, 2025, and a Form 8‑K detailing the redemption of the preferred shares was filed on February 12, 2026. The warning letter notes that the company did not file the required application and that the shareholder approval obtained under the 2025 Securities Purchase Agreement was deemed deficient under the Exchange’s internal guidance.
SRx has stated that all preferred shares have been either converted or redeemed and that no preferred shares remain outstanding. The letter warns that continued non‑compliance could result in a delisting action. The company has been under scrutiny for listing compliance, having received a notice in October 2025 regarding stockholders’ equity and losses, and submitted a plan to regain compliance by July 14, 2026.
The violations stem from the company’s capital‑raising activities, including a $50 million equity line of credit in July 2025, the issuance of Series A Preferred Stock in October 2025, and the redemption of these shares in February 2026 for approximately $21.77 million. In the first quarter of fiscal year 2026, the company reported cash and cash equivalents of $13.1 million, up from $1.3 million at September 30, 2025, driven by $16.1 million in common stock issuances and $8.9 million in preferred stock issuances, and $18 million invested in Bitcoin and Ethereum.
SRx is shifting away from its original pet health and wellness focus, pursuing digital assets and a planned acquisition of EMJ Crypto Technologies, with a name change to EMJX, Inc. The warning letter underscores regulatory scrutiny of its equity issuance strategy and highlights ongoing compliance challenges that could affect investor confidence and future capital‑raising efforts.
Michael Young, a board member, said, "The retirement of the preferred and cancellation of approximately 125,000,000 shares of common stock allows for further flexibility of our capital structure for additional investments in the future." Kent Cunningham, CEO, described the first quarter of fiscal year 2026 as a "pivotal reset for the Company," with materially improved liquidity and a stronger capital foundation.
The content on EveryTicker 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.