GrowHub Gets Nasdaq Delisting Exception, Must Meet Rules by Dec 2 via Merger
GrowHub Ltd received a Staff Determination Letter from Nasdaq threatening delisting due to non-compliance with minimum bid price and stockholders' equity requirements. The company appealed and was granted an exception for continued listing, conditional on demonstrating compliance with initial listing rules by December 2, 2026. This compliance is tied to the previously announced merger with EnChem America, Inc., which will result in a change of control and require the new entity to meet Nasdaq's initial listing standards. The merger involves exchanging EnChem America's equity for 142,848,176 GrowHub Class A ordinary shares, or 85% of fully-diluted shares, but there is no assurance the merger will be completed.
Key Highlights
- Nasdaq threatened delisting due to non-compliance with minimum bid price and stockholders' equity rules.
- Minimum bid price was below $1.00 for 30 consecutive business days.
- Stockholders' equity was $2,299,129, below Nasdaq's $2,500,000 requirement.
- Nasdaq granted an exception for continued listing until December 2, 2026.
- Compliance requires meeting initial listing rules, primarily via the EnChem America merger.
- Merger involves exchanging EnChem America equity for 142,848,176 GrowHub Class A shares.
- The shares will constitute 85% of GrowHub's fully-diluted shares post-merger.
- No assurance the merger will complete by December 2, 2026, or that compliance will be regained.
Price Impact
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