FGI Industries Ltd. (NASDAQ:FGI), a manufacturer of heating equipment and plumbing fixtures, disclosed on Wednesday that it has received a notice from the Nasdaq Stock Market indicating non-compliance with the exchange's minimum bid price rule.
According to the notice dated September 6, 2024, the company's common stock had closed below the required $1.00 per share for 30 consecutive business days.
The notice does not immediately affect the listing of FGI Industries' common stock on The Nasdaq Capital Market. The company has been granted a 180-day period, ending on March 5, 2025, to regain compliance. To achieve this, the company's stock must maintain a closing bid price of at least $1.00 for a minimum of ten consecutive business days within this timeframe.
Should FGI Industries fail to meet the requirement within the initial period, it may be eligible for an additional 180 days to regain compliance, provided it meets all other Nasdaq initial listing standards, excluding the minimum bid price. During this period, the company would need to submit a written notice to Nasdaq stating its intention to resolve the deficiency.
In the event of failing to cure the deficiency or if it's determined that the company will not be able to do so, Nasdaq will issue a notice of delisting. However, FGI Industries would have the right to appeal this decision, during which time its stock would remain listed.
InvestingPro Insights
Amid the challenges faced by FGI Industries Ltd. (NASDAQ:FGI), current InvestingPro data sheds light on some key financial metrics. The company's market capitalization stands at a modest $6.87 million, reflecting the scale of the business in the broader market context. Notably, FGI Industries is trading at a low Price / Book multiple of 0.29 as of the last twelve months leading up to Q2 2024, potentially indicating that the stock is undervalued relative to its book value. Furthermore, the company's P/E Ratio, adjusted for the same period, is 9.87, suggesting that investors are paying less for each dollar of earnings compared to the industry average.
InvestingPro Tips highlight that FGI Industries is expected to see net income growth this year, which could be a positive signal for investors seeking recovery potential. Additionally, the company is trading near its 52-week low, which might interest value investors looking for entry points in the hope of a turnaround. It's important to note that FGI Industries is also trading at a low revenue valuation multiple, which could be relevant for those evaluating the company's sales relative to its market valuation.
For readers interested in a deeper analysis, InvestingPro offers more tips on FGI Industries, providing a comprehensive outlook on the company's financial health and market position. These insights, along with additional InvestingPro Tips, can be found at: https://www.investing.com/pro/FGI.
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